Consumers have been warned that they face the prospect of further rising energy prices in the near future, as the UK becomes more reliant on importing its energy reserves.
Ofgem chief executive Alistair Buchanan stated that the fall in the UK's power production capacity in the coming months is likely to lead to further price rises.
Indeed, the energy regulator has predicted that power station closures this year could mean a ten per cent fall in capacity in the next two months alone.
The warning comes as older power stations are closing in the UK, while renewable energy is still growing.
Existing plans to take ageing and polluting power stations off the UK network over the next few years mean that the UK cannot produce as much energy as it used to.
As a result of this Mr Buchanan has stated that it is very important people take steps to become more energy efficient in order to avoid the approaching "near crisis".
There are many different ways to improve energy efficiency of your home from adding insulation to ensuring you have double glazing.
However, one of the cheaper ways of doing this is by installing LED lights in the home as they use much less energy than traditional incandescents, as well as having a much higher life expectancy.
This means that people placing energy efficient ceiling spotlights in the home can make great savings on their bills in the long run, which can help to make up for the increased fuel prices.
Mr Buchanan told BBC News: "We're going to have to go shopping in world markets at a time when they will be very tight [on supplies] themselves.
"There isn't a single person or people to blame. In my view it was a single event - the financial crisis. Before the financial crisis the government had backed a visionary approach to energy on wind, water and nuclear... then came the financial tsunami."
