Good Energy, EDF and trade body Energy UK have pleaded with the Government to intervene.

       Nigel Pocklington, chief executive of London-listed Good Energy, said: "Wholesale gas and power prices have increased to unprecedented levels over the last three weeks, creating an extremely difficult operating environment for every business in the industry."

       While UK and European natural gas prices hit an all-time record high on Tuesday, regulator Ofgem told how energy suppliers that have taken on the customers of failed rivals will be able to claim back more than ￡1.8billion.

       The money will ultimately be paid by Britain's bill payers, with each household and business charged a portion of the ￡1.8billion by Ofgem from April onwards.

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       The regulator revealed it had approved payments to eight so-called suppliers of last resort, which stepped in to ensure lights stayed on for close to 2.2 million properties. By far the biggest payment was made to Octopus Energy, which claimed ￡681million to pick up Avro Energy customers, while the next biggest claims were made by Shell Energy and British Gas.

       Ofgem said yesterday that ensuring all customers have new suppliers, after dozens of firms went bust, "comes at a cost, which we always seek to minimise".

       Experts believe that the energy price cap, which limits the amount a supplier can charge on standard tariffs, might rise by more than 50 percent from April.