The country could also be plunged into regular blackouts in just two years as power stations close and investment in new plants is held off.
Families already struggling to pay their bills could see their electricity bills soar by 20 per cent by the end of next year as reliance on foreign gas grows.
It means the average household’s electricity bill, currently around £570, could rocket by another £114 to £684 by the end of next year.
Experts say the average household dual fuel bill, currently £1,400, could shoot up to £2,000 in the next five years, forcing many into fuel poverty.
The stark warning is expected to be laid out in Ofgem’s electricity supply and demand forecast, due in a few weeks.
Energy regulator Ofgem is likely to reveal that storage capacity has fallen as gas-fired plants are gradually mothballed and cheaper coal-fired plants are forced to run at full pelt.
The price of gas has soared as North Sea supplies dwindle, forcing a greater reliance on foreign imports. Energy firms say they will not invest in gas until it becomes more profitable or Government subsidises it along with green energy.
Mark Todd, founder of energyhelpline.com, warned that Britain is in a “supply crunch” with energy prices likely to soar as a result. He said: “Coal-fired stations are being closed due to the drive for green energy and nuclear power stations are gradually becoming defunct.