Talking to the Press Association, he admitted that due to the large increase in wholesale coal and gas costs, any increases in the cost of energy are set to be "significant".
He added that the problem was also an issue for the rest of the world.
"It's affecting not just Britain but all countries and we have got to tackle it on a number of fronts," he explained.
"Our prices for electricity are still lower than in many parts of Europe."
It was recently claimed by John Hall, who advises energy suppliers on the issue, that UK consumers should expect increases of around 40 per cent if the price of oil does not fall.
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