Traders have called on central banks to stave off a cash crunch at healthy energy companies that stands to send consumers’ bills even higher. 

The European Federation of Energy Traders, which represents companies including EDF, BP and Shell, is said to have written to regulators and energy companies to warn that the “already challenging situation has worsened” since the end of February. 

The group wrote that an increasing number of businesses in the European energy market were now much less able to access additional funding and, in some cases, their ability had been “exhausted”, the Financial Times reported. 

It comes as traders suffer huge swings in prices after making bets on commodities including nickel and gas before Russia invaded Ukraine. Nickel, for example, rocketed in price following the attacks, while gas spiked by almost 200pc. 

Businesses wanting to trade or hedge must post collateral in case of a default, but rising volatility has meant the amount of cash needed has risen significantly. 

Some energy companies are now facing requests from banks to deposit more money to cover “margin calls”. 

The federation warned this created a risk that “generally sound and healthy energy companies [could be] unable to access cash”, and called for “time-limited emergency liquidity support to ensure that wholesale gas and power markets continued to function”.

Ashley Kelty at Panmure Gordon said the situation meant some businesses could not afford to do any hedging because margin calls were too big.

“This is similar to the scenario when central banks stepped in during the financial crisis in 2007-2008 when the derivative positions of Bear Stearns and the Lehman Brothers were becoming so big as to destabilise the market,” he said.

If traders were unable to hedge their positions, “consumers and companies will be totally exposed to spot prices”, Mr Kelty warned. “This means that utilities couldn’t offer a set rate – it would change daily and no one could have any idea of their energy bills.” 

Such a situation would push the energy price cap even higher, which Ofgem has been attempting to avoid. 

Reports of the federation’s letter comes after the FTSE 100 commodity trader Glencore warned that the “ability to finance margin payments” was a risk for the sector.