Patricia Hewitt has urged consumers to make the most of opportunities to cut their energy bills by up to £155 a year.

Speaking at an energy conference on Monday, the trade and industry secretary said household fuel bills could be reduced by £1 billion a year through three simple measures.

She said switching suppliers could save up to £100 a year on fuel bills, while paying by direct debit could reduce bills by a further £20 a year.

Further savings of £35 per annum could come from energy efficiency measures such as cavity wall insulation.

"We know that for many families fuel bills are a significant part of their weekly outgoings, and we need to do more to help the most vulnerable consumers benefit from big savings that are out there," said Hewitt.

"Half of all households have never switched energy supplier, despite the fact that there are big savings still to be made.

"Our message today is simple - why pay more for your gas and electricity than you need to?"

Competition

Hewitt was joined by energy minister Mike O'Brien, who urged a renewed effort to promote competition in the energy market.

"This energy consumer summit is a call to action - government, regulators and industry together in a concerted drive to raise awareness of the savings available to consumers from shopping around, and the support available to vulnerable households," he said.

"Improved winter benefits and energy efficiency grants since 1997 have helped cut by two thirds the number of fuel poor homes.

"But as winter starts to bite we have to ensure that the poorest in particular know what steps they can take to reduce their fuel bills further."

EnergyWatch, the gas and electricity consumer watchdog, said consumers had been "hit hard this year by rocketing fuel bills".

"The hike in energy bills is forcing vulnerable consumers into fuel debt and poverty this winter," said chief executive Allan Asher.