Britain's Prime Minister David Cameron speaks to staff during a visit to the Department Of Energy and Climate Change in London
British Prime Minister David Cameron (R) and Secretary of State for Energy and Climate Change, Chris Huhne will lead today's energy summit. REUTERS

A prime minster led energy summit will put pressure on the UK's largest energy companies to slash their costs in the wake of recording their biggest profits in decades.

The prime minister, David Cameron and energy secretary Chris Huhne said in a joint article that: "Energy bills in most households have increased by more than £100. These price rises couldn't come at a worse time for consumers who are already feeling the pinch from rising petrol prices and the cost of the weekly shop."

Regulator Ofgem has predicted a rise in firms' prospective profit margins from £15 to £125 per customer.

Managing Director of British Gas, Phil Bentley, claimed however, that rising prices were partly down to the global economy with demand much higher now than it was. "The UK imports over 50% of its gas from competing sources which means the demand is higher than ever for - not just on a national level but on a global level."

Bentley, making his points during an interview on the BBC Radio 4's Today Programme said: "It was important for companies to make profits so it will be able to invest in the vital energy sources of the future such as nuclear and renewables."

The government has said, however, it needs to work "harder and faster" to bring down energy bills in the wake of the desperate economic climate.

Confusing system

The big six companies, that make up 99% of all energy suppliers, have been accused of cornering the market and not offering cheaper tariffs to its clients.

There are dozens of tariffs for every company which people often claim is incredibly confusing. Ofgem has said they will enforce simpler tariffs as a part of the overview.