Electricity prices in Victoria drop by up to 16% since 2019

Victorians on the cheapest energy plans right now are saving up to $191, or 16.2 per cent, on yearly power prices, compared to the cheapest deals available just over two years ago.

The state’s energy market was shaken up in July 2019 by the introduction of the Victorian Default Offer (VDO). The VDO, which acts as an effective price cap for electricity providers, was introduced to protect consumers who didn’t engage in the market by placing them on a ‘fairer’ deal. It also allows Victorians to compare deals to the VDO price based on a set of default usage assumptions.

Before the VDO came into effect, customers who didn’t regularly switch plans or providers were likely placed on a ‘standing offer’ – a plan that was usually not very price-competitive. And although the VDO does offer some level of protection for the set-and-forget type of customer, those who shop around can save considerably more, exclusive Canstar Blue analysis has revealed.

Canstar Blue’s review of energy prices in Victoria found that annual costs on the retailers’ lowest-priced plans dropped between $109 and $191 from July 2019 to September 2021, with the size of savings depended on location.

During the same period, average energy prices in Victoria slid by up to eight per cent, or $111, the analysis showed. The average price refers to all deals available on Canstar Blue’s database.

Canstar Blue energy expert Jared Mullane explained that the fact the average price was still notably higher than the cheapest price indicated that a proportion of Victorians could still be paying too much for power.

“Victorians are much better off now than they were two years ago, before the VDO was introduced, but there’s still a large gap between the average and lowest-priced plans,” he said.

But Mr Mullane said even those households who weren’t on the state’s default offer could be missing out on even cheaper electricity. He pointed out that most of the cheapest deals currently available in Victoria were offered by smaller retailers.

“The deals we’re seeing right now that are between 20 and 30 per cent cheaper than the Victorian Default Offer are mostly from smaller brands many customers may have never heard of before,” he said.

This was despite many retailers recently increasing prices in line with an off-cycle adjustment to the VDO.

“This is a timely reminder for consumers that even if they’ve switched to what was at the time the best available price, bigger savings could be on offer,” Mr Mullane said. “Regularly comparing offers is the only way to ensure you’re on the cheapest deal.

“Given that exit fees are generally a thing of the past, consumers have even more incentive to switch and save.”

Melbourne households on the Citipower network can currently expect some of the lowest prices from providers like ReAmped Energy, Powershop, GloBird Energy, Alinta Energy and Lumo Energy.

Cheap Energy Deals in Victoria

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 next three tabs feature products exclusively from AGL, EnergyAustralia and Origin.

Here are the AGL Energy plans on our database for Victoria. These are products from a referral partner†. 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 the EnergyAustralia plans on our database for Victoria. These are products from a referral partner†. 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 the Origin Energy plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower energy 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.

How much have prices fallen on Victoria’s cheapest energy deals?

The table below refers to the lowest annual costs for residential customers on a single rate tariff.

Electricity Distributor 1 July 2019 1 September 2021 Annual Cost Decrease
Jemena $1,182 $991 $191 (16.2%)
Citipower $1,143 $966 $177 (15.4%)
Powercor $1,184 $1,051 $133 (11.2%)
United Energy $1,101 $991 $110 (10%)
Ausnet Services $1,240 $1,131 $109 (8.8%)

Annual cost based on yearly usage of 4,000kWh. Lowest annual cost based on single rate plans on Canstar Blue’s database, as of the 1st of each month. Prices are subject to change. Accurate as of September 2021.

What about the average energy costs in Victoria?

The table below refers to the average annual costs for residential customers on a single rate tariff.

Electricity Distributor 1 July 2019 1 September 2021 Annual Cost Decrease
Jemena $1,367 $1,256 $111 (8.1%)
United Energy $1,345 $1,236 $109 (8.1%)
Citipower $1,310 $1,211 $99 (7.5%)
Powercor $1,397 $1,295 $102 (7.3%)
Ausnet Services $1,494 $1,418 $76 (5.1%)

Annual cost based on yearly usage of 4,000kWh. Average annual cost based on single rate plans on Canstar Blue’s database, as of the 1st of each month. Prices are subject to change. Accurate as of September 2021.


Image credit: Studio Romantic/Shutterstock.com

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