In an effort to reduce fuel prices, the Government is currently in crisis talks.

After wholesale gas prices have risen by 70% in the past month, energy companies are calling for a multibillion-pound bailout.

It is possible that taxpayers will be required to pay the cost of stopping the collapse of many electricity and gas companies.

Kwasi Kwarteng, business secretary, will hold an emergency meeting with energy suppliers today. They are expected to ask for a massive Government package to help them through winter.

After yesterday’s meeting with regulator Ofgem, Mr Kwarteng stated that he had ‘ well-rehearsed plans’ in place to prevent consumers from being cut off.

Ministers have assured the public not to panic in recent days and denied that the UK is facing any ‘supply emergencies this winter’.

Boris Johnson, Prime Minister of the United Kingdom, stated that price increases are temporary because the economy recovered from the coronavirus pandemic.

“It’s like everybody going back to put the kettle on at the end of a TV programme, you’re seeing huge stresses on the world supply systems,” he told reporters.

It comes as five firms have already folded this summer and there are worries more could follow. Some experts have predicted there may only be between six and 10 companies left by the end of the year.

Mr Johnson added: ‘I have no doubt that supply issues will be readily addressed. We’re very confident in our supply chains.

‘But in the meantime, we will make sure we work with all the gas companies to do whatever we can to keep people’s supplies coming, to make sure they don’t go out for business, and to make sure we get through the current difficult period.’

Mr Kwarteng suggested yesterday that in the event of further issues he could appointment a ‘special administrator’, which is effectively a form of temporary nationalisation.

‘Our priority is to protect consumers. If a supplier of last resort is not possible, a special administrator would be appointed by Ofgem and the Government,’ he said.

‘The objective is to continue supply to customers until the company can be rescued or customers moved to new suppliers.’

He acknowledged it was a ‘worrying time’ for customers, but was confident supplies could be maintained and said the Government’s energy price cap would protect taxpayers.

This is despite the cap already set to rise to its highest ever level next month, with energy bills expected to increase by at least £139 a year for millions of people.

Concerns have been highlighted by charities as this coincides with the reduction of Universal Credit by £20 and when the weather gets colder.

There are also fears of a knock-on effect on the already-struggling supply chain with warnings of further shortages on the shelves – particularly around Christmas.

Two large fertiliser plants in Teesside and Cheshire, which supply the by-product of carbon dioxide (CO2) to the food industry, have been forced to close due to the huge rise in prices.

CO2 is vital in cooling systems used for refrigeration, extends the shelf-life of products and is used while slaughtering livestock.

As a result industry bosses have warned supplies of meat, poultry and fizzy drinks could all be affected within the next two weeks, including turkey at Christmas.

The Food and Drink Federation chief executive Ian Wright warned there could be ‘serious consequences’ within a matter of days.

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