Ministers are in discussions over implementing a long-term increase in energy prices as supermarkets warn that the cost of food may rise as a result of labour and gas shortages.
Paul Scully, the minister for small business, said that the government and energy regulator were having “conversations” about raising the energy price cap again in the spring.
Scully told Sky News that the government was preparing for a situation in which gas prices remained high beyond a “short spike”.
Ofgem, the energy regulator, changes the level of the cap every April and October after reviewing the costs faced by suppliers. Energy companies will be allowed to increase prices for standard tariffs by 12 per cent from next month, increasing a typical household’s bill by