Compare Victoria Electricity Prices

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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 pricing works and what to look for from an energy provider, including the discounts they offer. Sounds like a lot of hard work, doesn’t it? Well, Canstar Blue aims to make sense of the complicated and 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.

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 these 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 usage prices and daily supply charges of the energy providers we’ve compared, plus average energy usage figures, this page shows estimated annual costs for three-person households on the Citipower network in Melbourne. To get a specific quote for your suburb, use our comparison tool. Our database may not cover all deals available in your area.

Compare VIC Energy Plans

Cheap Deals on our Database

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 costs are based on a typical three-person household living on the Citipower network in Melbourne, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of price. Use our comparison tool for a specific comparison in your area. Read on for further details on VIC retailers. These are featured products from referral partners. Our database may not cover all deals available in your area, and please check retailer websites for up to date information.

Brand Features Benefit Period Annual Cost**
Simply Energy Logo

Simply RACV Plus

  • 45% pay on time discount off usage charges for eligible RACV members
2 YearsBenefit Period $1,039.44Annual Cost** Go To Site
Alinta Energy Logo

Fair Deal 43

  • 43% pay on time discount off usage charges
1 YearBenefit Period $1,093.89Annual Cost** Go To Site
Tango Logo

Home Select

  • No conditional discount
  • Fixed rates for 12 months
1 YearBenefit Period $1,130.45Annual Cost** Go To Site
Globird Logo

GloSave

  • 33% discount off usage & supply charges for paying on time and by direct debit
  • Fixed rates for 12 months
1 YearBenefit Period $1,133.24Annual Cost^^ Go To Site
Lumo Logo

Lumo Value 5

  • 5% discount off usage and supply charges for paying on time and by direct debit
OngoingBenefit Period $1,138.58Annual Cost^^ Go To Site
Click Logo

Click Garnet

  • 27% discount off usage & supply charges for paying on time
OngoingBenefit Period $1,149.06Annual Cost^^ Go To Site
View all electricity plans listed on Canstar Blue

Which energy provider is cheapest in Victoria?

Based on this very specific comparison of 23 energy retailers, we see that Simply Energy, Alinta Energy and Powerdirect offer the cheapest electricity in Victoria after factoring in any discounts. Notice, however, that about half the plans we’ve listed below only apply a discount for a benefit period of 1 or 2 years. Once this time is up, you will lose the discount and be left paying more for electricity unless you do something about it. Our database may not cover all deals available in your area, and please check retailer websites for up to date information.

Electricity Provider^ Electricity Plan Discount Annual Cost* Benefit Period
Simply Energy Simply RACV Plus 45% $1,039.44 2 years
Alinta Energy Fair Deal 43 43% $1,093.89 1 year
Powerdirect Residential 41 41% $1,128.69 2 years
Tango Energy Home Select 0% $1,130.45 1 year
GloBird Energy GloSave 33% $1,133.24 1 year
Sumo Power Residential 43 43% $1,137.68 1 year
Lumo Energy Lumo Value 5 5% $1,138.58 Ongoing
Dodo Power & Gas Everyday Electricity 20% $1,142.28 Ongoing
Click Energy Click Garnet 27% $1,149.06 Ongoing
Momentum Energy SmilePower Flexi 0% $1,156.11 Ongoing
Powershop Mega Pack 23.2% $1,178.41 Ongoing
Origin Energy Low Rate Plan 0% $1,189.50 1 year
AGL Essentials Plus 0% $1,194.94 2 years
Elysian Energy The Good Life 0% $1,214.24 Ongoing
Red Energy Living Energy Saver 10% $1,222.17 Ongoing
EnergyAustralia Anytime Saver 36% $1,243.09 1 year
1st Energy 1st Saver 20% $1,248.34 Ongoing
Diamond Energy Market Offer 10% $1,306.78 2 years
Commander Market Offer 20% $1,360.18 Ongoing
CovaU Smart Saver 34% $1,383.77 1 year
Amaysim Energy Electricity As You Go 0% $1,416.65 Ongoing
People Energy Total Saver 20% $1,474.42 Ongoing
QEnergy Flexi Home 0% $1,493.14 2 years

*Costs based on annual statistics from AER for a three person household on the Citipower electricity network in Melbourne. May 2019. One non-exclusive energy plan per retailer shown. There may be other retailers in your area.

^By clicking on a brand name, you may leave Canstar Blue and be taken to a referral partner to compare. You agree that Canstar Blue’s terms and conditions apply to this referral. If you click on a brand that is not a referral partner, you will be taken to a brand page on Canstar Blue.

As you can see from the table above, discounts give a rather mixed message to customers. For example, despite Sumo Power having one of the largest discount in Victoria, there are many other plans with smaller discounts that work out cheaper. The same is true of other providers. What this suggests is that customers need to be vigilant when comparing electricity deals. Don’t get too fixated on huge discounts and make sure to check you’re receiving competitive rates on energy and signing up to an appropriate plan.

Electricity Provider Customer Ratings

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. The only providers to currently offer fixed rate plans are Tango Energy (formerly Pacific Hydro), GloBird EnergyOriginEnergyAustralia and AGL. If you find a competitive fixed rate deal today, it could prove to be a smart financial move in the future. The downside to fixed rate plans is that they usually come with exit fees for leaving early, so make sure you read the small print before signing up.

Prepaid energy plans

In addition to ‘standard’ fixed and variable rate plans, several energy providers now offer ‘prepaid’ power deals. In this case, customers can purchase a set amount of power in advance for use over the next month, for example. Should they go over their limit, they may need to ‘top-up’ and purchase extra energy, in the same way you might when you go over the data limit of your phone plan. Prepaid plan providers in Victoria are Powershop, AGL, Amaysim Energy and Elysian Energy. Elysian is the only one of the four that exclusively deals in prepaid power.

Cheapest big three, no-discount, discounted, variable and fixed rate plans in Victoria

Here are the cheapest plans in our database for customers looking for a specific product type, including: Big 3 plans, 0% discount plans, discounted plans, variable rate and fixed rate plans. The categories below fall under no particular order.

Category Electricity Provider Electricity Plan Annual Cost*
Cheapest Big 3 Origin Energy Low Rate Plan $1,189.50
Cheapest 0% Discount Tango Energy Home Select $1,130.45
Cheapest Discounted Simply Energy Simply RACV Plus $1,039.44
Cheapest Variable Rate Simply Energy Simply RACV Plus $1,039.44
Cheapest Fixed Rate Tango Energy Home Select $1,130.45

*Costs based on annual usage statistics from AER for a three person household on the Citipower network in Melbourne, May 2019. ‘Big 3’ refers to AGL, Origin and EnergyAustralia.

How to get the best energy discounts

best energy discounts Victoria

Discounts can help slash your energy bill dramatically, so long as you meet the discount conditions. Otherwise, you will be left paying the full amount and could even face a fee. Pay on time discounts are the most common, but some providers require customers to pay by direct debit to get their discounts. Others make customers do both, as well as receive their bills and other correspondence via email instead of post. Conditions can get pretty detailed, with GloBird Energy, for example, insisting that customers pay by credit card on one particular plan.

When comparing discounts, it’s important to check whether you’re getting a discount off your entire bill, or just the usage or supply charges. Providers including Lumo Energy and Red Energy have whole bill discounts, while most retailers apply discounts only to the usage charges. Also be conscious of benefit periods, as some discounts may look very attractive when you sign up, but could disappear after the first 12 months and will no longer be available. Powershop and Click Energy are two retailers that offer ongoing energy discounts. Make sure that, if you agree to a two-year contract, the benefit period is also two years. Some providers have been known to offer a benefit period of only 12 months on a two-year agreement.

Discounts have become the main point of difference when comparing energy providers in Victoria, so pay attention to what you’re really getting. For most large households, a discount off usage costs will be more beneficial than a discount off daily supply charges. Whole bill discounts also tend to result in good savings.

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

  • Is the discount off the entire bill, or just usage or supply charges? As usage charges make up the majority of most electricity bills, this should be your preference, although some energy providers do take discounts off your entire bill.
  • How long is the benefit period? It’s typically that the headline discount offers you see will only apply for the first year of your plan. After that, you will start paying the non-discounted cost, which as you can see from the table above, are a lot more expensive.
  • What are the conditions of your discount and what happens if you don’t meet them? Most people will find it easy to pay their bills on time or by direct debit, but failing to do so one billing period could result in you losing the benefit all together. You could even be slugged a fee.

In addition to big discounts, you will also be presented with a range of different sign-up incentives, such as those mentioned below. However, it’s also worth pointing out that some retailers, most notable Tango Energy and Momentum Energy, now market themselves based on the fact that they have no ‘confusing’ discounts.

Sign-up incentives

Victorians are inundated with different incentives to try and persuade them to sign up with a particular electricity provider. For example, Lumo Energy has a rewards program called ‘Lumo Ameego’ 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. For example, Simply Energy has an energy plan promising ‘free’ Gold Class movie tickets over two years and has also had a plan targeted at AFL footy fans.

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.

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 agree 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. Tango 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.

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