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 costs and daily supply charges of the energy 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. To get a specific quote for your suburb, use our comparison tool below.
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 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. 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.
Which energy provider is cheapest in Victoria?
In the table below, we compare prices on the Citipower network in Melbourne. We show one product per retailer, listed from the lowest priced estimate first. See here for information on the VDO, which in this comparison assumes general energy usage of 4000kWh/year, meaning the VDO is $1,334/year. Use our comparison tool for a specific comparison. 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||Difference from VDO›||Conditional Discounts||Price Estimate˜|
|Elysian Energy||The Good Life||15% Less Than VDO||No conditional discounts||$1,136
|Kogan Energy||Market Offer||13% Less Than VDO||No conditional discounts||$1,163
|Tango Energy||Home Select||13% Less Than VDO||No conditional discounts||$1,163
|GloBird Energy||EasySave||12% Less Than VDO||No conditional discounts||$1,173
|Powerclub||Powerbank Home Flat||12% Less Than VDO||No conditional discounts||$1,177
|Simply Energy||Simply RACV||11% Less Than VDO||No conditional discounts||$1,183
|Powershop||Shopper Market Offer||17% More Than VDO||Reduces to 10% Less Than VDO for Pre-Payment||$1,199incl. conditional discount
|AGL||Essentials Saver||10% Less Than VDO||No conditional discounts||$1,200
|Commander||Market Offer||10% Less Than VDO||No conditional discounts||$1,200
|Dodo Power & Gas||Market Offer||10% Less Than VDO||No conditional discounts||$1,200
|Energy Locals||Online Saver||3% Less Than VDO||$84/year credit for paying on time||$1,214
|Powerdirect||Rate Saver||8% Less Than VDO||No conditional discounts||$1,227
|Lumo Energy||Lumo Value||4% Less Than VDO||Reduces to 7% Less Than VDO for Paying on Time||$1,237incl. conditional discount
|EnergyAustralia||No Frills||6% Less Than VDO||No conditional discounts||$1,249
|Sumo||Sumo Select||Equal To VDO||6% Less Than VDO for Paying on Time||$1,251incl. conditional discount
|Origin Energy||Max Saver Online Special||Equal To VDO||4% Less Than VDO for Direct Debit & Email Bills||$1,278incl. conditional discount
|1st Energy||1st Saver||Equal To VDO||4% Less Than VDO for Paying on Time||$1,286incl. conditional discount
|Click Energy||Banksia||1% Less Than VDO||No conditional discounts||$1,320
|Momentum Energy||Smile Power Flexi||Equal To VDO||No conditional discounts||$1,332
|Alinta Energy||Real Deal||Equal to VDO||No conditional discounts||$1,334
|Amaysim Energy||Victorian Default Offer||Equal to VDO||No conditional discounts||$1,334
|CovaU||Victorian Default Offer||Equal to VDO||No conditional discounts||$1,334
|People Energy||Standard Retail Contract||Equal to VDO||No conditional discounts||$1,334
|QEnergy||Home Your Way||Equal to VDO||No conditional discounts||$1,334
|Red Energy||Living Energy Saver||11% More Than VDO||Equal to VDO for Paying on Time||$1,334incl. conditional discount
|Diamond Energy||Diamond||12% More Than VDO||Reduces to 1% More Than VDO for Paying on Time by Direct Debit||$1,351incl. conditional discount
|DC Power Co||Market Offer||5% More Than VDO||No conditional discounts||$1,404
|Energy Fact Sheets|
˜Price assumes general energy usage of 4000kWh/year. Estimated price includes any conditions discounts that may be available. Pricing based on Citipower network in Melbourne, but prices differ between distribution areas. Oct 2019.
›The Victorian Default Offer (VDO) includes a daily supply charge and usage charges (per kilowatt hour). Differences in tariffs across distribution regions reflect the unique costs of providing electricity services in each area. The difference between the VDO and the unconditional price of a plan, based on the Victorian Government’s specific annual reference consumption for domestic customers in the distribution region, is expressed as a percentage more or less than the VDO. The terms of any conditional discounts are shown, along with any further difference between the VDO and the discount applied if a condition is met, expressed as a percentage more or less than the VDO.
As you can see from the table above, Elysian Energy, Kogan Energy and Tango Energy are currently the cheapest electricity providers 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. The table above is updated as soon as we’re made aware of any price changes.
About the 3 cheapest deals
Now that the above table has shed some light onto what you can expect to pay for electricity from each provider, it’s time to find out more about the three cheapest plans available in VIC. In the tables below, we compare prices on the Citipower network in Melbourne. We show one product per retailer, listed from the lowest priced estimate first. This comparison assumes general energy usage of 4000kWh/year. 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.
The Good Life (Elysian Energy)
Elysian Energy is a unique energy provider in that it provides electricity on a subscription basis. On the below plan, Victorian customers will receive 800kWh of energy usage a month. Customers pay a monthly charge of $176.50 on this plan.
Home Select (Tango Energy)
The Home Select is a non-discounted plan that has fixed rates for 12 months. This plan comes with reasonable rates, plus the flexibility to choose your preferred payment option (including direct debit).
Market Offer (Kogan Energy)
New kid on the block, Kogan Energy, has kicked off its entry into the Australian energy retail market with just one, albeit competitive, plan in Victoria. This is a no-discount, straightforward deal that comes with decent savings when compared to the VDO.
Cheapest big three, no discount, discounted, variable and fixed rate plans 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.
|Product Category||Electricity Provider & Plan||Difference from VDO›||Conditional Discounts||Price Estimate˜|
|Cheapest Big 3||AGL, Essentials Saver||10% Less Than VDO||No conditional discounts||$1,200
|Cheapest No Discount||Elysian Energy, The Good Life||15% Less Than VDO||No conditional discounts||$1,136|
|Cheapest Discounted||Powershop, Shopper Market Offer||17% More Than VDO||Reduces to 10% less than VDO for pre-payment
||$1,199incl. conditional discount
|Cheapest Variable Rate||Elysian Energy, The Good Life||15% Less Than VDO||No conditional discounts||$1,136
|Cheapest Fixed Rate||Tango Energy, Home Select||13% Less Than VDO||No conditional discounts||$1,163
|Energy Fact Sheets|
˜Price assumes general energy usage of 4000kWh/year. Estimated price includes any conditions discounts that may be available. Pricing based on Citipower network in Melbourne, but prices differ between distribution areas. October 2019.
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, only the biggest three providers – AGL, Origin and EnergyAustralia – have offered fixed rate plans, but now several others do, including Tango Energy and GloBird Energy. See our guide to fixed rate power plans to compare your options if you’re interested in a bit more price certainty.
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.
How to get the best energy discounts
Discounts can help slash your energy bills, but they’re not 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 focussing their efforts on proving 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.
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 during the term of the contract.
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.
VIC Electricity Rates Example
Electricity rates change frequently, and as in most states, Victorian annual energy bills can vary by hundreds of dollars a year for the same estimated usage figures. Based on the winner of our 2019 electricity customer satisfaction ratings, we’ve given you a closer look at what you can expect to pay with an electricity provider in Victoria.
|Usage Rate (per kWh)||19.14¢/kWh|
|Supply Rate (cents per day)||108.90¢/day|
|Difference from Reference Price||13% Less Than VDO|
|Conditional Discounts||No conditional discounts|
|Estimated Annual Cost||$1,163|
Questions to ask 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 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.