All homeowners could be hit with bills of at least £100 as many energy suppliers go bust. This comes under part of a deal with regulator Ofgem.

This has left more than one million customers in need of a new supplier.

Sorting this is expected to cost the industry a staggering £1.5billion – a sum that could rise if more firms close.

The costs are expected to be covered by all bill payers, whether they were users of the collapsed firms or not.

A deal with regulator Ofgem means there could be a levy rise of between £100 and £120 on customer bills.

DON’T MISS

“These smaller firms are reckless,” a source at one energy giant told the Sun.

“They gambled on energy prices staying flat and didn’t pre-buy their energy.

“Three quarters of prudent firms did this and are now protected from the soaring wholesale gas cost.

“It cost us extra money, but you have to do it.”

Locking into a cheap fix now could also be a way to avoid rising prices.

He said: “If you do a cheap one year fixed comparison and you can lock in at a cheaper rate for a year, it’s worth doing even if the saving is only a few quid, as the likelihood is over the next year the price cap will rise.

“So your real savings will be bigger.”

However, this won’t help those who set up a cheap fix a year ago as they could soon be set to pay much more.