Victoria: Origin Energy is dropping prices by 11%

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One of Victoria’s biggest energy providers has announced it will be cutting rates at the start of the new year, in a move that should spark welcome price competition in the state.

Origin Energy has revealed that its residential electricity prices will fall by an average of 11 per cent across Victoria from January 1, 2021, following news that the Victorian Default Offer (VDO) is reducing by 10 per cent on the same date.

The VDO is essentially a cap on how much power companies can charge customers on standard contracts, but also acts as a reference point from which all market offers can be compared.

Since the VDO and Origin’s rates are falling closely in line with each other, the percentage discounts off the VDO for Origin’s existing plans will remain consistent with current savings.

Origin Executive General Manager, Retail, Jon Briskin, said the cost cuts are mainly due to downward trends in the wholesale price market.

“Following what’s been an incredibly difficult year, it’s good to be able to pass on lower electricity prices for our Victorian customers and hopefully provide some welcome hip-pocket relief heading into the new year,” he said.

“Prices are falling due to a significant reduction in wholesale electricity costs and network costs, which make up a large share of a customer’s bill.”

Origin reports the rate drop will save Victorian households an average of $186 next year, with prices coming down to their lowest point since 2016.

While customers can expect some relief from electricity prices, Origin gas customers will see their bills go up slightly. The retailer estimates an increase of approximately 2.7 per cent from January.

“For the majority of Origin’s natural gas customers who also have their electricity with us, the increase in gas prices will be well offset by the significant decrease in their electricity prices,” said Mr Briskin.

Origin Electricity Plans

Origin Energy Prices NSW

Here are the Origin Energy plans on our database for NSW. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/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.

Origin Energy Prices VIC

Here are the Origin Energy plans on our database for Victoria. 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. 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.

Origin Energy Prices QLD

Here are the Origin Energy plans on our database for SE QLD. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/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.

Origin Energy Prices SA

Here are the Origin Energy plans on our database for South Australia. These are products from referral partners†. These costs are based on the SA Power network in Adelaide 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.

Compare and save more

Origin Energy is the first of the big power companies to reveal its price changes for January – the time of year when all retailers traditionally amend their rates in Victoria – and according to Canstar Blue Editor-in-Chief, Simon Downes, it’s the perfect time for households to search for a better deal.

“It’s great to see Origin announcing that it’s cutting power bill costs for Victorians who’ve had it tough this year, but even greater savings are possible if you engage in the energy market and shop around for the best value possible,” he said. “You can currently achieve up to 24% off the default VDO price and I’d expect these kinds of savings to continue into the new year.

“There was real concern that a very low VDO benchmark price would stifle retail competition in Victoria, but that simply hasn’t happened. The VDO acts as a safety net for customers who don’t engage in the market, but everyone else has the power to shop around and save even more.

“Origin is a safe pair of hands, but also consider the many other, smaller retailers operating in the state. But be aware that energy prices don’t just change in January – providers are always making adjustments to their pricing and launching new products, so keep your eyes peeled for the best deals as they come up.”

Victoria Electricity Prices

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.

Image credit: ChameleonsEye/Shutterstock.com

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