Natural gas prices already at a record high could rise even further if the UK experiences a prolonged or particularly cold winter, according to the owner of British Gas.
Supply issues and increased inflation have led to current high prices according to regulator Ofgem.
Cassim Mangerah, who runs energy trading at British Gas owner Centrica, said restrictions on the amount of natural gas available globally could have significant implications for UK consumers during a sustained winter.
"We haven’t seen a price situation like this before.," he told the Financial Times.
"If you can’t attract supply the only alternative is to cut demand to balance the market.
"If we do see a supply crunch this winter the other way to balance the market is through economic activity.
"If prices are really high then some gas-dependent businesses in the UK and Europe may simply decide not to produce."
Both E.On and Scottish Power revealed last month that their standard tariffs are set to rise by around £139 a year - the maximum figure Ofgem allows - with other firms expected to follow.
Ofgem, which reviews price caps every six months, agreed to the latest increase due to to a rise in wholesale prices.
The regulator said that energy customers on default tariffs paying by direct debit will see the sharpest jump in prices since the cap was introduced, taking average bills to £1,277.
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