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Cheapest Electricity Prices in Victoria

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Canstar Blue has produced a cost comparison for electricity retailers in Melbourne, showing their cheapest offers and what you can expect to pay. No gimmicks – just helpful, real costs that show where you can find a better deal.

No one wants to pay more for power than they need to, but if you’re not a savvy energy shopper, that’s exactly what could happen to you. To find the best deal on electricity, you need to understand how the pricing works and what to look for from an energy provider, including the discounts on offer. Sounds like a lot of hard work, doesn’t it?

Everyone in Victoria knows how competitive the local energy market is, but it can be hard to see through all the promotional material and work out if you’re really getting a good deal or not. That’s why we’ve crunched the numbers to show where you can find some of the cheapest electricity rates in Victoria if your home is on the Citipower network and what you need to do to get them. It’s worth noting, however, that there are five electricity distribution networks in Victoria and prices may change depending on where you live.

Based on the cents per kWh of usage costs and daily supply charges of the providers we’ve compared, this page shows estimated annual bills for customers on the Citipower network in Melbourne, compared to the Victorian Default Offer (VDO) as a point of reference.

Sponsored Victorian electricity plans

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. Costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

The pricing shown below is based on the Citipower network in Melbourne, Victoria. If you’d like a more accurate quote from your area, jump onto our comparison tool below.

Cheapest electricity prices in Victoria

According to the Canstar Blue database, CovaU, Tango Energy and EnergyAustralia currently offer the cheapest electricity plans in this comparison for Victoria, leading the way from plenty more established providers. It’s worth noting, however, that electricity prices in Victoria can change fairly frequently, so be sure to check back soon.

To see what you can expect to pay from these retailers, we’ve listed the cheapest plans below. Please note, these prices are based on the Citipower network in Melbourne with a general energy usage assumption of 4000kWh/year. In instances where one provider may have multiple cheap offers, we show only one product with the lowest price estimate first. The Victorian Default Offer (VDO) for this area is currently $1,456/year. Use our comparison tool for a specific comparison.

Super Saver (CovaU)

Here is CovaU’s plan on our database for Victoria. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Value Select (Tango Energy)

Here is Tango Energy’s plan on our database for Victoria. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Flexi Plan (EnergyAustralia)

Here is EnergyAustralia’s plan on our database for Victoria. This is a product from a referral partner†. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Best-Rated Electricity Providers VIC

Other cheap electricity deals in Victoria

Sometimes the cheapest possible deal isn’t the right deal for you. Some customers may prefer a specific type of product, which is why we’ve also listed the cheapest plans on our database for customers looking for a specific product type, including plans from the big three, 0% discount plans, discounted plans, plus variable rate and fixed rate plans. These have once again been compared to the VDO.

Cheapest Electricity Plan (Big 3 Provider) – EnergyAustralia, Flexi Plan

Here is EnergyAustralia’s plan on our database for Victoria. This is a product from a referral partner†. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Cheapest Electricity Plan (No Discount) – CovaU, Super Saver

Here is CovaU’s plan on our database for Victoria. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Cheapest Electricity Plan (Discounted) – EnergyAustralia, Flexi Plan

Here is EnergyAustralia’s plan on our database for Victoria. This is a product from a referral partner†. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Cheapest Electricity Plan (Variable Rates) – CovaU, Super Saver

Here is CovaU’s plan on our database for Victoria. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Cheapest Electricity Plan (Fixed Rates) – Lumo Energy, Value

Here is Lumo Energy’s plan on our database for Victoria. This is a product from a referral partner†. These costs are based on the Citipower electricity network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.


Read more: What’s cheaper: Electricity or Gas?


How to get the best energy discounts

Discounts can help slash your energy bills, but they’re no longer the main point of difference when comparing plans. In light of the industry changes that took effect in July 2019, many providers have ditched their discounts in Victoria, instead focusing their efforts on providing lower base rates, thus removing the potential pitfall of missing out on the discount. However, discounts for paying on time and paying by direct debit are still common, although some providers instead add bill credits to their plans as another way to attract attention.

In most cases, discounts will be applied to both usage and supply charges, though some will expire after just the first year or two. So be aware that, if you go for a plan with a discount, you’ll have to remember to check back in with your retailer once the benefit period is up.

What sign-up incentives and plans are available for Victorians?

Victorians are inundated with different incentives to try and persuade them to sign up with a particular electricity provider. For example, AGL has a rewards program called ‘‘AGL Rewards’ whereby customers can benefit from discounts at a range of retailers. You can also get money off cinema and theme park tickets, amongst other things. Other providers offer a credit on your first bill when you sign up online, usually a fairly modest $50 or $100. Meanwhile, others try to attract customers based on their hobbies – be it going to the movies, or supporting a sports team.

While these discounts can be appealing, it’s important not to let them dictate your overall decision. This should be made based on a provider’s usage and supply charges, and what you expect to pay when the bill arrives every month or quarter. These incentives can, however, be a very useful point of difference when comparing similar offers.

Fixed vs variable rate plans

Most of the electricity plans listed above come with variable rates, meaning the prices you are charged can be changed at any time. That’s why it’s important to regularly review your power bills, to make sure nothing has changed. However, some retailers also offer fixed rate plans, whereby rates are locked in for a set term and do not change. Traditionally, the bigger providers, like Origin and AGL, had offered fixed rate plans, but now you’ll find only a limited number of small providers still offering a fixed rate plan. See our guide to fixed rate power plans to compare your options if you’re interested in a bit more price certainty.

Victoria electricity rates example

Electricity rates in Victoria can change regularly, and as in most states, energy bills can vary by hundreds of dollars a year depending on the rates you pay. Based on the winner of our electricity customer satisfaction ratings, we’ve given you a closer look at what rates you can expect to pay in Victoria.

Provider Red Energy
Plan Living Energy Saver
Usage Rate (per kWh) 22.20¢/kWh
Supply Rate (cents per day) 97.79¢/day
Difference from Reference Price 14% Less Than VDO
Conditional Discounts No conditional discounts
Estimated Annual Cost $1,245

Questions to ask an energy provider before signing up

Here are some questions you should consider asking any prospective energy company:

  • Are you offering me the plan with the lowest usage rates?
  • How much are the supply charges and how do they compare to other plans?
  • How does the plan compare to the Victorian Default Offer (VDO)?
  • Is there a contract? How long is it? Are there any exit fees if I leave?
  • What discount can I get off my bill and how do I quality for the discount?
  • What is the benefit term of the discount? Will it disappear after a year?
  • Can you offer me any additional sign-up incentives?
  • Which types of electricity tariffs are available in Victoria?

Which electricity provider is rated highest in Victoria?

No one wants to pay more than they need to for electricity, so it makes sense that the bottom line will decide which provider many consumers go with. However, other factors, most notably customer service, can also prove important. Call centres are a major bugbear for customers because there’s nothing worse than hanging on the phone for ages, trying to get a straight answer to a straight question. The energy companies should be working hard to keep you happy, in terms of the price you pay, but also the customer service you receive. That’s the reason why Canstar Blue produces customer satisfaction ratings for electricity providers in Victoria every year. Red Energy is currently rated highest overall.

If there is one message to take away from this report, it’s that regularly reviewing your electricity plan and comparing it to other offers on the market is a wise move, particular in Victoria where the energy companies are competing hard for your custom. You might just save a few bucks.

Compare Gas Suppliers in Victoria

 

Here’s a summary of the information above. Essentially, a quick, need-to-know breakdown of Victoria’s electricity market. 

Victorian Default Offer

Citipower: $1,571/year based on general usage of 4000kWh/year

Jemena: $1,720/year based on general usage of 4000kWh/year

Powercor Australia: $1,793/year based on general usage of 4000kWh/year

Ausnet Services: $2,026/year based on general usage of 4000kWh/year

United Energy: $1,666/year based on general usage of 4000kWh/year

Number of Energy Providers in VIC

20+

Winner of Canstar Blue’s Most Satisfied Customers – Electricity Providers VIC Award

Red Energy

VIC Distribution Networks

Citipower, Jemena, Powercor Australia, Ausnet Services, United Energy Distribution

VIC Gas Distribution Networks

Australian Gas Networks, Multinet Gas, AusNet Services

VIC Electricity Tariff Options

Single rate, time of use, controlled load

VIC Electricity Generation

Coal, gas, hydro, solar, wind farms, biomass

Year VIC electricity market was deregulated

2009

Katrina Hasdell
Energy Content Producer
Katrina Hasdell is an Energy Content Producer at Canstar Blue, where she covers Australia’s retail energy market. Katrina is dedicated to providing consumers with easy-to-read information on their energy options so they can get better deals on electricity, solar power and more.

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