The government has been urged to spread the cost of energy supplier collapses over the coming years.

Speaking on the Times Radio, Octopus Energy Chief Executive Greg Jackson said: “Unless action is taken, we will start to see those very, very high increases come through to the consumer market.”

Mr Jackson added that there is still time to avert the worst-case scenario. He said: “The next price cap announcement is in February. And so there is still time between now and then for us to find ways to say, this is a one-in-30-years event, why not spread the cost over a number of years rather than try and take it all in one go?

“It might need the government to help ensure there is a mechanism in place.”

The interview follows a recent call by 20 Tory MPs who sent a letter to Boris Johnson and Rishi Sunak asking for a VAT cut and removal of green levies on energy bills.

The letter signed by the group, including Esther McVey, MP for Tatton and Steve Baker MP for Wycombe, stated: “High energy prices, whether for domestic heating or for domestic transport are felt most painfully by the lowest paid.”

A government spokesperson told ELN: “Protecting consumers is our top priority which is why our Energy Price Cap will remain in place.

“We are also supporting vulnerable and low-income households further through initiatives such as the £500 million Household Support Fund, Warm Home Discount, Winter Fuel Payments and Cold Weather Payments. Domestic fuels such as gas and electricity are also already subject to the reduced rate of 5% of VAT.”