Downing Street sources have confirmed that Prime Minister Rishi Sunak has convened an emergency Cabinet meeting within the last hour to tackle the escalating energy price crisis. The urgent summit comes as wholesale gas prices surged to a record high this morning, with immediate warnings that household bills could skyrocket by another £800 this winter.

One senior government insider, speaking on condition of anonymity, revealed: 'The situation is dire. Prices are completely unsustainable, and the PM has ordered all hands on deck. No options are off the table – including direct subsidies, price caps, and even a windfall tax on energy giants.'

The meeting, scheduled for 5pm this evening, brings together the Chancellor Jeremy Hunt, Business Secretary Kemi Badenoch, and Energy Security Secretary Claire Coutinho. Sources add that Treasury officials have been scrambling all day to model the impact of a potential £40 billion support package.

'This feels different to previous crises,' said Dr. Eleanor Shaw, energy policy expert at the London School of Economics. 'The market is broken. We're seeing volatility that makes the 2022 spike look tame. If the government doesn't act decisively by close of play, we could face a full-blown national emergency within weeks.'

Labour has already seized on the news, with Shadow Energy Secretary Ed Miliband demanding 'immediate, concrete action' and accusing the Tories of 'dithering while families freeze'.

Meanwhile, energy suppliers are bracing for intervention. A spokesperson for British Gas said: 'We welcome the government's attention. Our priority is protecting customers, but we need a long-term solution, not sticking plasters.'

The crisis was triggered by a combination of factors: a cold snap across Europe drawing down gas reserves, reduced LNG shipments from Asia, and maintenance outages at several North Sea platforms. But critics argue the UK's lack of storage capacity and over-reliance on spot markets has made it uniquely vulnerable.

'We have the least gas storage in Europe – just a few days of winter demand,' noted Professor James Thornton, former advisor to the energy regulator Ofgem. 'This crisis was entirely predictable, yet successive governments kicked the can down the road.'

As the Cabinet meets, Downing Street is staying tight-lipped on details. But the message from insiders is clear: this is a 'red alert' moment. The decisions taken this evening will determine whether millions of Britons face a choice between heating and eating this Christmas.

Further updates as we get them. The British Wire will be live-blogging the emergency meeting.