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Energy suppliers along with a number of their customers and credit insurers have been called to a meeting next week by Alistair Buchanan, chief executive of Ofgem, in an effort to find a solution. Whitehall officials from Lord Mandelson's business department and Ed Miliband's energy department, will also attend and brief ministers.

The Major Energy Users' Council (MEUC) has set up its own energy credit action group following complaints from members worried they may be cut off because their supplier has been refused insurance cover against them defaulting on contracts. A number have been asked by their suppliers for deposits covering up to six months supplies after being told they were poor credit risks.

Alarm bells have been ringing as members complain they are being squeezed by both suppliers and insurers. Suppliers also say they are experiencing a tough time. One is understood to have had almost 65pc of its new applications for cover refused.

Andrew Buckley, director of membership services, said: "We are facing the biggest crisis since privatisation and we need to find a solution quickly. The problem is spreading and dragging in more companies and undermining the confidence of foreign companies about operating in Britain."

Energy has been caught in the credit crisis fallout as specialist insurers, suffering from the rising toll of business failures, take a more rigorous approach to assessing risks.

The leaders in the business, Atradius, Euler Hermes and Coface, deny they are taking a tougher line on energy contracts compared with other sectors in the economy but point out that managing credit risks in the sector is particularly difficult because credit periods and other obligations stretch over a longer period.

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