Victorian energy consumers sought out competitive market offers as prices of electricity and gas continued to hike in 2009-10, according to a report issued today by the State's energy regulator.

The report by the Essential Services Commission (ESC) revealed that more than 1.12 million electricity and gas customers transferred their retail energy accounts in 2009-10, equivalent to a gross switching rate of around 25 percent for both electricity and gas customers.

The Commission's report found that the price of electricity for residential market offers increased by an average 13.5 percent over 2009-10, while the price of electricity for standing offers (default or non-market offers) rose by an average 12-16 percent.

Some retailers, however, increased standing offer prices by up to 24 percent over a one-year period.

Standing offer prices apply to customers who have not shifted from, or changed their arrangements with, their existing retailers since the start of retail energy competition almost a decade ago.

The electricity price rises reflected rising network costs (including the rollout of advanced metering technology, or smart meters) and an increase in electricity wholesale (generation) and retailer costs.

Nevertheless, the report revealed that small business and residential customers could still make substantial savings in their energy bills by taking up competitive market offers provided by energy retailers operating in Victoria.

On average in 2009-10, residential customers could save $92 a year on a single-rate tariff, $130 on a two-rate (ie peak and off-peak) tariff and $165 on a time-of-use tariff when they switched from a standing offer to a market offer with all discounts included.

In gas, residential market offer prices increased by seven per cent, while standing offer gas prices increased by six to 13 percent. As with electricity, the Commission found that customers who switched from a standing offer to a fully discounted market offer could save up to $100 on their annual bill.

For its Energy Retailers: Comparative Performance Report for 2009-10, the Commission undertook independent research into the market contracts on offer to electricity and gas customers.

Up to 13 retailers operated in the Victorian retail energy market in 2009-10, providing market offers in some or all of the state. The Commission's market analysis covered the price and non-price offerings of electricity and gas market contracts across Victoria.