Compare VIC Electricity Providers

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Canstar Blue’s review of Victorian electricity providers compares AGL, Alinta Energy, Click Energy, Dodo, EnergyAustralia, GloBird Energy, Lumo Energy, Momentum Energy, Origin Energy, Powershop, Red Energy, Simply Energy, Sumo and Tango Energy on tools & advice, bill & cost clarity, environmental sustainability, ease of sign-up, customer service, value for money and overall satisfaction.

See our Ratings Methodology.

Most Satisfied Customers | Powershop

Powershop has reclaimed top spot in this year’s ratings, taking out the title of best electricity provider in Victoria. Powershop was the only provider to get five-star reviews across the board, in categories such as value for money, customer service and bill & cost clarity.

Powershop back as best-rated electricity provider in Victoria

If you live in Melbourne, you can hardly walk around the corner without seeing some form of advertising from an energy company. Victoria is the most competitive electricity market in Australia, and the power retailers are desperate for your business – hence all those TV, radio and even billboard ads! This competition is good for consumers who like to shop around for the next best deal, but it can also make things seem extremely confusing. With so many electricity providers in Victoria – and so many sales pitches to work through – how are you going to find the right deal for you? Canstar Blue’s customer satisfaction review and ratings helps you cut through the noise and find out which providers are really doing a good job by their customers with regards to the service and tools they provide, as well as the value for money they offer.

This year, more than 2,200 electricity bill-payers in Melbourne and across Victoria have had their say on their electricity provider of choice, which have been rated on factors including bill & cost clarity, tools & advice, customer service and value for money. With so much competition between electricity companies in Victoria, the idea is to give you as much information as possible about the 14 providers compared, plus the others that operate in the state, to help you make the best decision for your needs. If you’ve always been with one of the ‘big three’ power companies – AGL, Origin and EnergyAustralia – you may find these results particularly interesting given that the research highlights a notable divide in satisfaction between customers of the big and some smaller providers.

Best VIC Electricity Providers

Powershop

Here are the best energy providers in Victoria as rated by customers in Canstar Blue’s latest satisfaction survey:

  1. Powershop
  2. Tango Energy
  3. Dodo
  4. Momentum Energy
  5. GloBird Energy
  6. Alinta Energy
  7. Red Energy
  8. EnergyAustralia
  9. Lumo Energy
  10. Click Energy
  11. AGL
  12. Sumo
  13. Simply Energy
  14. Origin Energy

After losing its title to Tango Energy last year, Powershop is back on top again in our energy provider ratings for Victoria. Powershop’s prepaid-style to energy retail is clearly going down well with lots of customers in the Melbourne area, as is its focus on renewable energy. Powershop was the only provider to score five stars for overall customer satisfaction this year, in addition to customer service, ease of sign-up, online tools & advice and environmental sustainability. It also earned top marks for bill & cost clarity and value for money.

Tango Energy still performed very well this year, rated in second place with four stars overall, along with Dodo, Momentum Energy, GloBird Energy, Alinta Energy and Red Energy. Tango Energy and Dodo also earned top marks on value for money. It was three stars overall for EnergyAustralia, Origin Energy, AGL, Lumo Energy, Click Energy, Sumo and Simply Energy.

Read on as we explain everything you need to know about electricity providers in Victoria, and how to get a better deal from them. But first, here is a selection of the cheapest published deals on our database.

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Cheap Electricity Deals VIC

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 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.

VIC Electricity Providers

Powershop

As well as competitive electricity prices, Powershop focuses on offering customers the helpful tools they need to monitor and act on their energy usage, including an online platform and smartphone app. Users can also log on to the Powershop website to pre-purchase power packs and take advantage of various special deals, making it unique in the Australian market. Powershop is owned by Meridian Energy – one of New Zealand’s biggest energy generators and retailers – and has a reputation for being a cheeky alternative to the more established retailers – regularly poking fun at ‘traditional’ energy company behaviour. But it has a serious side – especially when it comes to renewable energy, ranked the Greenest Energy Company in Australia by Greenpeace. When it comes to electricity plans, Powershop offers a sizeable discount off its base rates, with further savings possible by purchasing a future power pack, with offers regularly updated on the website and app.

  • Powershop is top of the leaderboard for a reason, scoring an impressive five stars across the board. That means full marks for value for money, customer service, bill & cost clarity, focus on environmental sustainability, ease of sign-up, online tools & advice and overall satisfaction.

Tango Energy

Tango Energy is a Melbourne-based electricity provider and the retail arm of renewable energy generation company Pacific Hydro. Tango Energy was previously branded Pacific Hydro, but its name was changed in 2018. Founded in 1992, the company was acquired by China’s State Power Investment Corporation after being floated on the ASX in 2016. When it comes to electricity retail in Australia, Tango Energy primarily operates in Victoria with two market offers. The first plan comes with fixed rates for 12 months so customers are protected from increasing costs in the short term. It does not include any conditional discounts, just competitive rates. The second is much the same, with the added bonus for 100% GreenPower to your plan. Tango Energy is generally one of the cheapest electricity providers in Victoria and its back-to-basics approach has made it a hit with Victorian consumers.

  • In just its second year in our Victoria electricity provider ratings, Tango Energy has achieved five stars for its value for money and bill & cost clarity. It scored four overall and for customer service, focus on environmental sustainability and ease of sign-up. It earned just three stars for online tools and advice.

Dodo

Perhaps best-known as a phone and internet provider, Dodo completes the set of home services by also selling electricity and natural gas. A fairly no frills retailer, Dodo operates with a single variable rate market offer in Victoria, usually competitively-priced. This is a no contract agreement, with no exit fees. But Dodo would rather have you sign up for multiple services, claiming notable savings for those who buy their energy and internet together. The Dodo brand is owned by Vocus Communications – the company behind lots of other phone and internet providers, including iPrimus. Dodo’s main selling point is that customers have the convenience of dealing with the same company for all of their home services. The problem is that it becomes harder to compare plans when you start bundling them together.

  • Dodo has moved up the ranks this year, scoring five stars for value for money and four stars overall, as well as for customer service, bill & cost clarity, ease of sign up and online tools & advice. Dodo fell short on environmental sustainability with three stars.

Momentum Energy

Owned by Hydro Tasmania, Momentum Energy is a champion of renewable electricity generation and was one of the first retailers to make moves to help simplify energy retail in Australia by keeping its products free from conditional discounts in an energy market where the biggest discounts didn’t always mean the biggest savings – and sticking to all the conditions can prove tricky. Melbourne-based, Momentum Energy markets itself as the electricity provider with great rates but no confusing discounts. In Victoria, Momentum has four residential market offers with varying rates but no exit fees. These include a plan targeted at renters who often move home, plus one of few solar-specific deals in Victoria that has a seemingly generous feed-in tariff. This approach seems to have its fans, with Momentum Energy rating consistently well in our VIC electricity ratings over the years.

  • Taking fourth place in our latest review of Victorian electricity providers, Momentum Energy was rated four stars across all research categories. This includes variables such as value for money and customer service.

GloBird Energy

GloBird Energy has emerged as one of the main ‘second tier’ challengers to Victoria’s power giants, AGL, Origin and EnergyAustralia. While some retailers promote their green credentials, helpful tools, or great customer service, GloBird Energy is all about promoting cheap prices and big savings. It mainly does this through large conditional discounts, but GloBird has also become one of several providers to launch an energy offer with low base rates, rather than relying on headline-grabbing discounts to bring costs down. In addition to supplying electricity in Victoria, GloBird Energy is also now a natural gas retailer in the state and recently launched in NSW and SA for the first time. Claimed to be 100% Australian-owned, GloBird Energy is often one of the cheapest retailers around.

  • GloBird Energy has performed reasonably well in this year’s report, earning mostly four-star ratings – notably for its value for money, customer service, ease of sign-up and overall satisfaction. While it did score five stars for bill & cost clarity, the retailer received three stars for environmental sustainability and two stars for online tools & advice.

Alinta Energy

Alinta Energy is one of the largest dual fuel energy providers in the southern states of Australia, as well as a major gas supplier in Western Australia. It is also now partnered with the Queensland government to supply homes in the Brisbane area. The retailer is headquartered in Sydney and has a strong presence in Perth, but is now owned by a Hong Kong-based conglomerate company. When it comes to electricity in Victoria, Alinta Energy has two market offers, both of which come with no conditional discounts. One of Alinta’s plans in Victoria gives customers a subscription to Kayo Sports. Households that also switch their natural gas with Alinta Energy could qualify for a ‘double up’ bonus in the form of sign-up credit. The retailer also has its own rewards program, bringing savings on various activities such as movie tickets and eating out.

  • Alinta Energy has been ranked sixth in this year’s VIC electricity comparison. It achieved four stars for bill & cost clarity, ease of sign-up, customer service, value for money and overall satisfaction, with three stars for online tools & advice and environmental sustainability.

Red Energy

The highest-rated electricity provider in our NSW comparison, Red Energy keeps things fairly simple with three electricity market offers for prospective customers to consider. The retailer’s biggest selling point is its partnership with Qantas as two plans come with the added benefit of Qantas Frequent Flyer points for paying on time. Red Energy’s traditional offer comes with a modest 10% discount applied to both usage and supply charges, with the first Qantas deal including the 10% discount but also throwing in two points for every $1 spent on energy. The second Qantas plan bumps up the reward to seven points per $1 spent, but for this the 10% discount is lost. All plans come with variable rates but no contract term of exit fees. Red Energy’s standard plan also come with access to Red Energy Rewards, the retailer’s exclusive rewards program that can deliver discounts on various social activities, such as movie tickets, hotels and numerous other attractions. Like Lumo Energy, Red Energy is owned by renewable energy company Snowy Hydro.

  • Red Energy earned four stars for overall satisfaction this year, as well as for customer service, bill & cost clarity, environmental sustainability and ease of sign-up. It scored three stars for value for money and online tools & advice.

EnergyAustralia

The best-rated of the big three retailers in Victoria, EnergyAustralia provides a fairly concise range of electricity products in Victoria, including two fixed rates deal that see prices locked in for 12 months. Rates vary between the plans and one includes a modest guaranteed discount applied to the whole bill. There is a third plan with no discounts or incentives which comes with VDO pricing. All this marks a notable change for EnergyAustralia which previously offered up to five different market offers in Victoria, including some large conditional discounts which expired after a year or two. This changed when new industry regulations took effect. All EnergyAustralia plans are said to be carbon neutral for customers who opt in (you’ll need to check the EA website for details). The company helpfully publishes estimated monthly costs for all its plans online so you’ll have an idea of what you’ll pay before signing up.

  • EnergyAustralia was ranked eighth in our latest VIC electricity review, scoring a mix of three and four stars across the board. It achieved four stars for customer service, bill & cost clarity, environmental sustainability and online tools & advice, but just three stars for overall satisfaction, value for money and ease of sign-up.

Lumo Energy

Lumo Energy offers Victorians a diverse range of electricity products, including a deal targeted at renters who often move home – as it waives connection and reconnection fees – and a basic energy offering with no sign-up incentives or conditional discounts. Most Lumo Energy plans come with modest discounts for those who pay on time. All Lumo plans have variable rates, but the details may vary between products. However, one consistent theme is that conditional discounts are all applied to the whole bill, rather than just usage charges alone. Another big draw to Lumo Energy is its rewards program, Lumo Ameego. With this, customers redeem discounts on a range of social activities such as movie tickets, gift cards, eating out and hotels. Lumo Energy may not be the best-rated in Victoria, but it has historically ranked very well in our annual review of SA electricity providers.

  • The ninth best-rated provider in our latest VIC comparison, Lumo Energy recorded mostly three stars, namely for value for money, environmental sustainability, online tools & advice and overall satisfaction. It did, however, score four stars for customer service, bill & cost clarity and ease of sign-up.

Click Energy

Claiming that its online business model helps keep costs low, Click Energy has been a reasonably-strong performer in our electricity provider ratings in recent years. Now owned by phone and internet provider Amaysim – now also an energy retailer – Click Energy typically provides a couple of market offers in Victoria, in addition to one or two deals specifically designed for solar customers. All plans come with variable rates and Click Energy has a habit of chopping and changing its main product from time to time. Once a retailer that promoted large discounts, Click Energy’s plans now come with no conditional discounts at all, although it is known for the occasional promotion that includes incentives like free gift cards.

  • Click Energy has worked its way up to 10th position in this year’s VIC electricity review, scoring three stars for overall satisfaction, bill & cost clarity and environmental sustainability. Click earned four star ratings for value for money, customer service, ease of sign-up and online tools and advice.

AGL

Like Origin, energy giant AGL has undertaken a major review of its electricity plans since the introduction of the VDO, with a move away from conditional discounts, replaced by sign-up incentives instead. AGL’s offers are now the Essentials Saver and Essentials, one of which has fixed rates for 12 months, the other variable. This plan comes with an added extra of up to 5,000 flybuys points over 15 months for signing up online, as well as access to AGL Rewards, the retailer’s loyalty program that delivers various value-add benefits. AGL is also one of few retailers to offer specific deals for seniors.

  • In our Victoria electricity provider ratings, AGL finished with three stars for overall satisfaction, value for money, ease of sign-up and environmental sustainability. It achieved four stars for customer service, bill & cost clarity and online tools & advice.

Sumo

Sumo has emerged within Victoria and NSW as a residential energy retailer that is also an NBN provider. Due to this, you can expect to find bundled products to service your home, with additional bill credits available for choosing this option. In Victoria specifically, Sumo offers three main electricity offers, the first coming with a fairly modest conditional discount and the second that comes with electricity bill credits. Sumo also provides a basic fixed rate electricity plan for those who want to keep it simple. All of Sumo’s plans generally come with rates not far off the VDO, with the discounted product being an exception, granted you meet the conditions required.

  • In Sumo’s first year in our VIC electricity providers review, it ranked 12th of 14 companies rated. It scored three stars in almost all categories, with bill & cost clarity being the exception, where it was rated four stars.

Simply Energy

Simply Energy is typically a price-competitive electricity provider in Victoria, offering a range of unique products to choose from. The company is now owned by French utilities giant Engie, but remains based in Melbourne where it offers a price effective plan with a conditional discount and a deal for footy lovers that comes with an AFL store voucher. Simply Energy’s main selling point is value-add incentives, where customers can choose to sign up to a plan that offers extras they might be interested in. One of its most attractive options in recent years was its special offer for movie fans, bringing free tickets throughout the year. However, this deal is not always available. All plans come with variable rates but no lock-in contracts.

  • Coming in second-last in our VIC electricity provider ratings this year, Simply Energy rated three stars for overall satisfaction, value for money and environmental sustainability. It got four stars for online tools & advice, ease of sign-up, bill & cost clarity and customer service.

Origin Energy

Origin Energy has perhaps seen the biggest changes following the industry changes that took effect from July 2019. Previously offering one of the most diverse product ranges around, including large conditional discounts that expired after a year, Origin now promotes a much easier to understand line-up of just three plans, with no conditional discounts to be found. The first of these is its basic plan with VDO pricing, while the other two bring modest savings off the VDO. Both coming with no contract terms or exit fees, but to get the best deal, you’ll have to set up direct debit and email billing. This plan also promotes something of an added discount when you sign up online. Despite changes to its product range, many Origin customers will still be on one of its now retired plans. If you don’t recognise the plans list here, it might be worth giving Origin a call to discuss your options.

  • Ranked last in our VIC comparison, Origin earned three stars for overall satisfaction and all other research categories with the exception of four stars when it came to online tools & advice.

In addition to the market offers mentioned above, all energy providers have standard electricity contracts in Victoria. These are ‘default’ power plans that customers may be on if they have never switched retailers, or haven’t moved onto a new deal for several years. Standard contracts are significantly more expensive than the cheapest market offers.

VIC Energy Providers

There are five electricity distribution networks across Victoria, with numerous energy providers operating throughout. Here is a comprehensive list of the electricity providers in Victoria. Canstar Blue’s electricity comparison service includes pricing from all of these providers.

VIC Electricity Providers

  • AGL
  • Alinta Energy
  • Amaysim Energy
  • Amber Electric
  • Click Energy
  • Commander
  • CovaU
  • DC Power Co
  • Diamond Energy
  • Dodo
  • Elysian Energy
  • EnergyAustralia
  • Energy Locals
  • GloBird Energy
  • Kogan Energy
  • Lumo Energy
  • Momentum Energy
  • Origin Energy
  • People Energy
  • Powerclub
  • Powerdirect
  • Powershop
  • QEnergy
  • Red Energy
  • Simply Energy
  • Sumo
  • Tango Energy
  • 1st Energy

Big changes to Victorian Energy Market

The Victorian energy market went through a significant change in July 2019 when tough new regulations took effect, designed to cut prices, as well as make comparing plans easier. After years of big, often dodgy discounts, retailers must now compare their discounted products to a ‘level playing field’ price called the Victorian Default Offer. The idea is that, unlike before, there is now a consistent price from which plans are compared, meaning you can have greater confidence that the plans boasting the biggest savings genuinely deliver them. At the same time, the Victorian Default Offer (VDO) acts as a price cap for customers who were previously paying the highest prices on standing offers. These customers have now been switched onto the cheaper VDO price and will be saving hundreds of dollars a year. That said, there are still many plans cheaper than the VDO, so shopping around for the best deal is still hugely important.

About the Victorian Electricity Market

About Victorian Electricity Market

Victoria is a hugely competitive market for the electricity providers – it’s where many invest the majority of their time, effort and money in order to attract new customers. This is important to know because it means that you have the power to find a better deal – provided that you’re willing to do your research and shop around. This hasn’t happened by chance or overnight. Victoria was the first Australian state to completely remove electricity price regulations in 2009, which means the energy companies are free to set their own plans and prices, with minimal legislative interference under the introduction of the VDO in 2019. Households had been able to switch providers since several years earlier, but there was little financial incentive to do so at the time.

With a fully deregulated electricity market, Victorians now have a huge range of different providers, plans and other incentives to choose from. However, with all this choice can come confusion and there is little doubt that the prospect of picking an electricity provider is a daunting one for a great many households, which is why many will still be paying more for power than they need to. The price of electricity has risen significantly in recent years, blamed in part on the closure of the Hazelwood Power Plant in Victoria back in 2017, leading many to question whether or not deregulation has been good for consumers or not. That debate will continue, but for now the key to cutting energy costs is first understanding your options – and then acting on them.

Victoria Electricity Generation & Power Stations

Victoria currently has three coal-fired power stations in operation in the Latrobe Valley, Yallourn (owned by EnergyAustralia) and Loy Yang A and B (owned by AGL). The Loy Yang power stations alone are said to power approximately 30% of Victoria’s electricity generation, although all three plants are scheduled to close in the next 20-30 years.

The Hazelwood Power Station (majority owned by Engie, the company behind retailer Simply Energy) was previously supplying around a quarter of Victoria’s base load electricity before it was closed in 2017. This means the state is now heavily reliant on its numerous gas turbine and reciprocating power stations, but with the coal-fired plants getting older and becoming less reliable, Victorians are susceptible to blackouts during periods of high demand when power reserve are stretched to the limit. More than 200,000 people were left without electricity in January 2019 as Melbourne sweltered through a 42-degree day and two of the three coal-fired plants failed.

Victoria is also home to more than a dozen solar farms, wind farms and hydroelectric power generation systems, but these can currently only meet a small percentage of the state’s overall energy demands.

Electricity Contracts in Victoria

Victoria Electricity Contracts

There are two types of electricity contracts that a household in Victoria could be on – the Victorian Default Offer (VDO) or a market contract. Knowing which type you have is the first step to saving money.

  • Victorian Default Offer: Introduced in July 2019, the Victorian Default Offer (VDO) has replaced standing offers as the most expensive contract that a customer who does not engage in the market can be on. The price of the VDO is determined by the Essential Services Commission (ESC) and is consistent across all retailers, unlike the previous standing offers. The introduction of the VDO saw customers on standing offers automatically switched onto the VDO price, saving many households hundreds of dollars a year.
  • Market contracts: These are contracts set almost entirely by the energy retailers. They come with varying contract lengths, conditional discounts, benefit periods and fees. These are the plans that are heavily promoted by the retailers and can provide the opportunity for customers to cut costs, as long as they stick to the conditions. However, retailers must meet certain industry rules relating to how their market offers are promoted, including the fact that plans with discounts must be compared to the VDO, which also cats as a reference price for consumers to compare all plans.

It’s estimated that about one in ten households in Victoria were switched from a standing offer onto the VDO in July 2019. But while the VDO price is certainly much less than these people would previously have paid for power, Canstar Blue’s electricity database shows that customers could still save hundreds of dollars a year by switching from the VDO onto one of the cheapest market contracts, even with the same retailer. The VDO is designed to be a “fair” price for power, but that doesn’t mean you should settle for it.

Electricity Charges in Victoria

Market electricity offers in Victoria come in all sorts of shapes and sizes, but they all include two major costs – supply charges and usage charges.

  • Supply charges: These are costs that households incur simply for being connected to the energy grid. Supply charges in Victoria typically cost around $1-$1.20 per day and remain the same every day no matter how much energy you use.
  • Usage charges: These are the rates you’ll pay for actual electricity usage. Depending on different tariffs (which we’ll come to shortly), usage charges can vary considerably. General usage charges in Victoria can cost anywhere from 16 to 34 cents per kWh.

It’s important to look at both of these rates when comparing energy plans, but large households should pay particular attention to usage rates, while smaller households with modest energy usage should look for plans with lower daily supply costs as these will make up a higher proportion of overall costs.

Electricity Plans in Victoria

Victoria Electricity Plans

With more than 25 electricity providers competing in Victoria, you won’t be surprised to learn that there is a huge range of different plans to pick from, often differentiated by the conditional discounts and any other incentives on offer. These plans broadly fall into two categories – those which have variable rates and those with fixed rates.

  • Variables rate plans: Much like having a variable rate home loan, electricity plans have variable rate usage and supply charges. This means that your provider could change the prices that you pay for electricity usage and supply at any time, as long as they give you prior notice. However, variable rate plans generally have cheaper rates than fixed rate plans.
  • Fixed rate plans: If you don’t like the idea of prices changing at short notice, some energy companies have fixed rate plans. With these, you effectively lock-in supply and usage charges for a set period, usually one or two years. This means that you pay the same rates for the life of your contract, but this added convenience can come at a higher price – much like fixed rate home loans.

The vast majority of electricity plans in Victoria come with variables rates. Fixed rate plans were once only offered by the big three, AGL, EnergyAustralia and Origin, though nowadays you’ll find smaller providers going down the fixed rate path too.

Solar Plans in Victoria

The sun may not shine in Victoria as often as some other states, but more and more Victorian households are choosing to invest in solar systems. While all electricity market offers come with some form of solar feed-in tariff, there are only a handful of retailers that offer specific solar plans, usually with higher rates for solar generation. These include Kogan Energy, Origin, Click Energy, Amaysim Energy, CovaU and Momentum Energy.

Electricity Discounts in Victoria

In an effort to stand out from the crowd, some electricity providers in Victoria boast market offer plans with discounts off usage charges – up to 40% or more before the industry changes that kicked in from July 2019 but much lower now. While these discounts can be a great way to cut your overall power costs, it’s important not just to assume that the providers promising the biggest discounts will automatically work out to be the cheapest, because that’s often not the case at all. Discounts will usually be applied if you:

Discounts usually apply to electricity usage charges only, but some retailers apply their discounts to your entire bill instead. While tempting, it’s important to compare energy plans based on their base rates as well as the conditional discounts. But most importantly, you should see how the plan in question compares to the reference price that is the VDO. Failing to meet the conditions of a discount will mean you are left paying the non-discounted rate, which will be much higher. You may also be charged a fee. Also be sure to check the benefit period of your discount, because most only apply for one or two years, after which you’ll have to pay the full price.

Other Incentives

If discounts don’t really appeal to you, you will find a range of other sign-up incentives offered by the electricity retailers in Victoria in an effort to get you on board. Simply Energy and Alinta Energy both have plans that provide incentives for sports lovers, while AGL customers can earn flybuys points and those with Red Energy can collect Qantas Frequent Flyer points. It’s also common for retailers to throw $50-$100 in sign-up credit at new customers, especially if they sign up online.

Energy Rewards Programs in Victoria

The following electricity providers offer some form of rewards program to customers in Victoria, bringing savings on various leisure and social activities, including eating out, accommodation and even theme park tickets.

  • AGL (AGL Rewards)
  • Alinta Energy (Alinta Energy Rewards)
  • Red Energy (Red Energy Rewards)
  • Lumo Energy (Lumo Ameego)
  • Sumo (Sumo Perks)
  • CovaU (CovaU Rewards)

Given that Victoria is one of the most competitive energy markets for the retailers, some of these rewards programs are not available in other areas.

Electricity Tariffs in Victoria

Victoria Electricity Tariffs

Energy tariffs are often the cause of confusion for customers, but once you know what they are and how they work, you will realise they could present an opportunity to save on bills. Put simply, ‘tariffs’ relate to the pricing structure of your energy plan, with different usage charges applying based on when you use power. Tariffs available in Victoria broadly fall into two categories:

Single Rate Tariffs

If you have a single rate tariff, you will pay the same usage charges no matter what time of day you use power – so the cost of using air conditioning, for example, will be the same whether it’s used in the early evening (peak times) or in the middle of the night (off-peak times). You might also see a single rate tariff referred to as a ‘general rate’ or ‘peak tariff’ as all electricity usage is effectively charged at peak rates.

Time of Use Tariffs

If you have a time of use tariff (also known as ‘flexible pricing’), you’ll be charged different electricity rates depending on when you use power. These rates are usually split into three categories, although the exact times in which they apply can vary between electricity distribution networks.

  • Peak: These rates usually apply from the early afternoon until the late evening (e.g. 2pm-8pm). The most expensive rates you will pay, these charges can cost up to and over 50 cents per kWh.
  • Off-peak: These rates apply from the late evening until the early morning (e.g. overnight from 10pm-7am) and at weekends. These charges typically cost less than 25 cents per kWh.
  • Shoulder: These rates apply at all other times of day (e.g. late morning until early afternoon). Cheaper than peak rates but more expensive than off-peak rates, expect to pay around 26-32 cents per kWh.

Time of use energy tariffs are only available if your property has a smart meter. As the majority of homes in Victoria now have smart meters installed, flexible pricing is very common and can be helpful in reducing energy costs, particularly if you generally use power at off-peak times. However, picking the wrong tariff for your usage habits could prove a costly mistake. Demand tariffs – which apply an additional charge to reflect a household’s peak time usage – are also now available in Victoria.

Controlled Load Tariffs

In addition to single rate and time of use tariffs, households in Melbourne and other parts of Victoria can also benefit from a controlled load tariff (also called a dedicated circuit). A controlled load tariff is a dedicated metering connection that allows households to pay for high-usage appliances, such as hot water systems, at a cheaper rate. A dedicated circuit is usually only applied to electric water heaters, but with more than one circuit, households can also apply them to pool pumps. Controlled load tariffs are much cheaper than other charges, usually less than 25 cents per kWh. The drawback is that power will only be supplied for a few hours each day (i.e. enough time to heat water for the day or to clean your pool).

Electricity Distribution Networks in Victoria

Victoria Electricity Distribution Networks

The other factor that could impact the size of your next bill is where you live. Victoria has five different electricity distribution networks and the cost of supplying power to your home can be different depending on which network you live on. While electricity retailers are the customer-facing business, it’s the distributors who manage the infrastructure (i.e. poles and wires) that transports energy to your living room. The five electricity distributors in Victoria are:

  • Citipower – servicing Melbourne city and inner suburbs
  • Jemena – servicing northern and south-western suburbs
  • Powercor Australia – servicing western suburbs and western Victoria
  • AusNet Services – servicing outer northern and eastern suburbs, plus eastern Victoria
  • United Energy Distribution – servicing southern suburbs and Mornington Peninsula

As the retailers pass on distributor costs to their customers, the suburb you live in will impact your energy costs. For example, an Origin customer living in north Melbourne would pay a different rate to an Origin customer in south Melbourne, even if they have the same product and identical usage habits. Distributor costs can account for up to 50% of your overall bill. If you are a home owner, there is nothing you can do about this, but if you are renting a home or considering where to buy, this is worth looking into. Choosing one suburb over another could save you hundreds of dollars a year in energy costs.

Who pays the most (and least) for energy in Victoria?

Given that distribution costs are passed on to the electricity providers, who then pass the costs onto their customers, it makes sense that households in the most hard-to-reach places will pay the most for power as there are more poles and wires involved in transmitting the energy to them. This is the case in Victoria where electricity customers in central parts of Melbourne (on the Citipower network) generally pay lower rates than those who live on the Powercor and AusNet networks which huge parts of regional Victoria.

To illustrate how location impacts the cost of electricity across the five distribution networks in Victoria, Canstar Blue’s electricity database listed the following prices as the cheapest deals on each network as of February 2020. These annual costs are based on assumptions set by the Essential Services Commission.

Electricity Network Annual Electricity Bill
Citipower $1,089
United Energy $1,153
Jemena $1,157
Powercor $1,178
AusNet $1,254

Source: Canstar Blue electricity database February 2020.

As you can see, living in one part of Victoria could see you paying hundreds of dollars a year more than an equivalent household in another part of the state, even with the same retailer. And keep in mind that it’s not only those way out in regional Victoria that pay the highest prices – as a provider’s rates are consistent across each network, you could live on the Powercor or AusNet network in an outer suburb of Melbourne and pay significantly more than your friends in a neighbouring suburb.

Where can you find the cheapest electricity prices in Victoria?

There is no simple answer to this question because it depends on a multitude of factors, from the type of contract you have, to your discount, electricity tariffs, and where you live. But to give you an idea of where to find the cheapest energy rates in Victoria, Canstar Blue has a cost comparison page, showing plans from the providers mentioned in this report. Being the cheapest provider doesn’t automatically make them the ‘best’, but if it’s purely the bottom line you are concerned about, be sure to check out the details. Also be sure to use our comparison tool for specific offers in your area.

Questions to ask before signing up to a new plan

This report offers lots of information to help you make a better-informed decision about your electricity supply, so now it’s up to you to compare providers and plans. To make sure that you get a better deal, be sure to consider and ask the following questions:

  • What type of electricity contract is it? (e.g. VDO or market contract)
  • What are the supply and usage rates? (How much are you paying per kWh?)
  • What different tariff options are available and how do the charges vary?
  • What percentage discount is offered and what are the conditions?
  • What rewards programs or other sign-up incentives are available?
  • Can you add a controlled load (dedicated circuit) for water heating?

You will find the answers to these questions and more in the energy price fact sheets of each electricity provider you compare. However, these documents can be quite difficult to understand, so don’t be afraid to pick up the phone and get the answers you need. It’s also a good idea to contact your existing provider and ask if your current deal is the best they can offer. Remember that the electricity providers should be working hard to keep you happy, so if you’re not completely satisfied with the price you’re paying or the servicing you’re receiving, you now know what you can do about it.

Compare VIC Gas Suppliers

More about VIC Energy Providers

Our electricity provider ratings for Victoria saw a number of brands perform well in different areas. These ratings are based on the feedback of more than 2,200 bill-payers in the state.

  • Best Overall: Powershop was rated best for overall satisfaction, ahead of Tango Energy in second place and Dodo in third.
  • Best Value: Dodo was rated best for value for money, leading the way from Powershop and Tango Energy respectively.
  • Best Service: Powershop was rated best for customer service, along with Tango Energy and Momentum Energy.
  • Best for Bill & Cost Clarity: GloBird Energy was rated best in this regard, ahead of Powershop and Tango Energy.
  • Best for Signing Up: Powershop was rated best for ease of sign-up, followed by Click Energy and GloBird Energy.
  • Best for Tools & Advice: Powershop was a clear winner for tools & advice, with Dodo and AGL the next best-rated.
  • Best for the Environment: Powershop was rated best for environmental sustainability, leading the way from Red Energy and Momentum Energy.

Amaysim Energy

Amaysim Energy

You might know it best as a telco provider, but Amaysim has dived right into the Australian energy market, providing electricity and gas to households in Victoria, NSW, QLD and South Australia. The market plans offered by Amaysim Energy in Victoria are fairly basic, promising no confusing discounts, just competitive rates. It also has a subscription-based product that’s a bit like having a prepaid phone plan in that you purchase power ahead of time. Unlike many providers, Amaysim has a specific plan for solar customers with a higher feed-in tariff than its non-solar product. Amaysim also retails natural gas in Victoria. With this provider you can expect no lock-in contracts or exit fees, and to pay your bills monthly.

Commander

commander power and gas logo

Commander had previously established itself as a business-only energy retailer, but is now offering residential electricity plans in VIC, SA and NSW. Its single market offer comes with low variable rates instead of any conditional discounts or bill credits. This provider bills quarterly and sends bills by default through email. The Commander brand is owned by Vocus Communications, which also includes Doro and iPrimus.

CovaU

CovaU

CovaU retails electricity and natural gas to households in Victoria and NSW. This provider’s plans vary between states, and in Victoria you’ll find one market offer and a solar offering for those with solar panels. On both of these plans you can expect to see a seemingly generous pay on time and direct debit discount that applies to the whole bill, but is only applied the first year you’re on the plan. CovaU also has a rewards program, offering various discounts and savings with certain retailers and attractions.

DC Power Co

DC Power Co

DC Power Co is a new energy brand owned by Powershop Australia, with a strong focus on proving services to households with solar panels. The company released a market electricity offer in Victoria in 2019, but also operates in NSW and South East Queensland. On this plan you’ll pay a monthly subscription fee in order to access what DC Power Co claims to be cost price electricity, and receive advice on optimising your solar system to help you use less power from the grid.

Diamond Energy

Diamond Energy

Diamond Energy is a relatively small, solar-focused retailer that places a large emphasis on supporting renewable energy generation. It operates in VIC, NSW, QLD and SA. It has been ranked the second most ‘green’ electricity company in Greenpeace’s latest Green Electricity Guide, perhaps in part due to its ownership of renewable assets. In Victoria you can find one electricity market offer available from Diamond Energy, that comes with a discount when you pay on time, by direct debit and receive email bills, which applies for a total of two years.

Elysian Energy

Elysian Energy

Elysian Energy is offering a fairly unique approach to energy retail, whereby customers pay a monthly fixed rate for their electricity depending on estimated usage needs. It’s currently only available in Victoria, and comes with no discounts or headline incentives, instead, claiming to offer “consistently low prices”. Elysian Energy is offering four different energy plans based on varying household energy usage needs, whereby if you don’t use all power that’s available, the remaining will roll over into the next month.

Energy Locals

energy locals logo

Energy Locals is relatively new to the Victorian market, but is taking giant leaps as a small retailer, supplying power to homes and businesses. What makes Energy Locals a little different is that asides from being an energy company, it is also a social enterprise. Energy Locals currently has two market offers available to customers in Victoria, both of which are relatively competitive in terms of its usage and supply rates. One of the plans gives customers access to wholesale rates for a monthly membership fee.

Kogan Energy

Kogan Energy logo

Online retail giant, Kogan, has entered the energy market by way of its partnership with established retailer, Powershop. Kogan is currently available in Victoria, New South Wales, south east Queensland and South Australia, offering one plan fittingly called ‘Market Offer’. Kogan Energy has a helpful app which allows customers to pay bills and check power usage, as well as other useful insights. With such a renowned name in the retail space, Kogan Energy aims to “flip the switch on amazing value” in the energy world.

People Energy

people energy logo

Melbourne-based People Energy currently only has residential market offers in Victoria, with just standard contracts available in NSW and Queensland. This retailer frames itself as a ‘customer focused’ retailer, and offers what it calls ‘competitive pricing’. Despite these claims, People Energy is currently offering just one electricity plan in Victoria, with rates equal to the Victorian Default Offer.

Powerclub

Powerclub

Powerclub is an emerging retailer that is offering electricity in a different way from the norm. Instead of laying down plans with predetermined rates, customers will gain access to wholesale prices for the cost of an annual fee. Victorians who are interested in Powerclub will be better off having a smart meter installed on their premises, though it’s not strictly necessary. To prevent bill shock, Powerclub also has in place a ‘Powerbank’, from which customers pay a deposit to ensure coverage in case of unpredictable wholesale rate spikes.

Powerdirect

Powerdirect transparent (large)

Powerdirect is backed by AGL, and is offering energy plans in Victoria, NSW, Queensland and South Australia. Like other providers, Powerdirect has historically been known to offer energy to business customers only, but has expanded to provide residential electricity as well. With this retailer, you’ll find plans with generous guaranteed discounts on both usage and supply charges for a 24 month benefit period. In Victoria, however, customers will have to settle for fixed rates for 12 months at the expense of discounts.

QEnergy

Qenergy

QEnergy follows of a slew of electricity retailers trying to ‘simplify’ the residential energy market by offering plans with no conditional discounts. The retailer currently operates in Victoria, NSW, Queensland and South Australia, but is perhaps better known for its business energy offerings. In Victoria you can expect to see one market offer that, as mentioned, provides no discount and variable rates.

Sumo

Sumo

Sumo has emerged within Victoria and NSW as a residential energy retailer that is also an NBN provider. Due to this, you can expect bundled products to service your home, with additional bill credits available for choosing this option. In Victoria specifically, Sumo offers both electricity and gas plans, with bill credits advertised. Sumo also provides a basic fixed rate electricity plan for those who want to keep it simple.

1st Energy

1st Energy

1st Energy calls itself a ‘customer focused’ retailer that offers prices that “actually reflect the real cost of doing business”. It is offering energy plans in Victoria, NSW, QLD, and more recently, Tasmania. It is the first provider to move into Tasmania, challenging the monopoly of state-owned Aurora Energy. Within Victoria, 1st Energy is offering one market plan that comes with a large pay on time discount off just usage charges, rather than the whole bill.

Prices from VIC Energy Providers

Victoria Electricity Prices

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 $1,420/year for a residential customer on a single rate tariff. 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 23% Less Than VDO No conditional discounts $1,089

Momentum Energy Self Serve 14% Less Than VDO No conditional discounts $1,220
Alinta Energy Home Deal 14% Less Than VDO No conditional discounts $1,221
Powerclub Powerbank Home Flat 13% Less Than VDO No conditional discounts $1,230

Tango Energy Home Select 13% Less Than VDO No conditional discounts $1,234
Kogan Energy Market Offer 13% Less Than VDO No conditional discounts $1,242

Simply Energy Simply Plus Equal To VDO Reduces to 12% Less Than VDO for Paying on Time $1,249incl. conditional discount
1st Energy Prepay Value 11% Less Than VDO No conditional discounts $1,258 
Origin Energy Max Saver – Online Special 11% Less Than VDO No conditional discounts $1,263
Commander Market Offer 11% Less Than VDO No conditional discounts $1,270

Dodo Power & Gas Market Offer 11% Less Than VDO No conditional discounts $1,270
Powerdirect Rate Saver 10% Less Than VDO No conditional discounts $1,277
AGL Essentials Saver 10% Less Than VDO No conditional discounts $1,278
Energy Locals Online Saver 4% Less Than VDO $84/year credit for paying on time $1,281incl. conditional discount
EnergyAustralia Total Plan Home 9% Less Than VDO No conditional discounts $1,292
Powershop Shopper Market Offer 2% More Than VDO 9% Less Than VDO for Pre-Payment $1,298incl. conditional discount
Lumo Energy Lumo Value 5% Less Than VDO Reduces to 8% Less Than VDO for Paying on Time  $1,313incl. conditional discount
Diamond Energy Diamond 4% More Than VDO Reduces to 6% Less Than VDO for Paying on Time by Direct Debit $1,329incl. conditional discount
Amber Electric Amber Plan 6% Less Than VDO No conditional discounts $1,334
Click Energy Hibiscus Plus 6% Less Than VDO No conditional discounts $1,334
Sumo Sumo Select Equal To VDO Reduces to 6% Less Than VDO for Paying on Time $1,334incl. conditional discount
GloBird Energy SureSave Equal To VDO Reduces to 3% Less Than VDO for Paying on Time by Direct Debit $1,377incl. conditional discount
Red Energy Living Energy Saver 8% More Than VDO Reduces to 3% Less Than VDO for Paying on Time $1,377incl. conditional discount
Amaysim Energy Classic Electricity 1% Less Than VDO No conditional discounts $1,405
CovaU Victorian Default Offer Equal To VDO No conditional discounts $1,420

People Energy Victorian Default Offer Equal To VDO No conditional discounts $1,420
QEnergy Home Your Way Equal to VDO No conditional discounts $1,420

DC Power Co Market Offer 6% More Than VDO No conditional discounts $1,507
Energy Fact Sheets

Victoria Electricity Rates

The table below shows the general usage rates and daily supply charges of the Victorian electricity providers on our database. We list the rates of the cheapest published deal from each retailer. Rates are for single rate tariffs only. Use our comparison tool for specific rates in your area.

Electricity Provider Electricity Plan General Usage Rate Daily Supply Charge Important
AGL Essentials Saver 22.65¢/kWh 101.77¢/day Energy Fact Sheets
Alinta Energy Home Deal 21.45¢/kWh 99.55¢/day Energy Fact Sheets
Amaysim Energy Classic Electricity 24.92¢/kWh 111.96¢/kWh Energy Fact Sheets
Amber Electric Amber Plan 25.87¢/kWh 82.01¢/kWh Energy Fact Sheets
Click Energy Hibiscus 23.66¢/kWh 106.30¢/kWh Energy Fact Sheets
Commander Banksia Plus 22.15¢/kWh 105.17¢/day Energy Fact Sheets
CovaU Victorian Default Offer 25.17¢/kWh 113.09¢/day Energy Fact Sheets
DC Power Co Market Offer 28.42¢/kWh 65.15¢/day Energy Fact Sheets
Diamond Energy Diamond 25.18¢/kWh 128.65¢/day Energy Fact Sheets
Dodo Market Offer 22.15¢/kWh 105.17¢/day Energy Fact Sheets
Elysian Energy The Good Life N/A N/A Energy Fact Sheets
EnergyAustralia Total Plan Home 25.17¢/kWh 113.09¢/day Energy Fact Sheets
Energy Locals Online Saver 24.00¢/kWh 111.00¢/day Energy Fact Sheets
GloBird Energy SureSave 25.17¢/kWh 113.09¢/day Energy Fact Sheets
Kogan Energy Market Offer 22.26¢/kWh 96.39¢/day Energy Fact Sheets
Lumo Lumo Value 24.15¢/kWh 106.06¢/day Energy Fact Sheets
Momentum Energy Self Serve 20.38¢/kWh 110.83¢/day Energy Fact Sheets
Origin Energy Max Saver – Online Special 25.17¢/kWh 113.09¢/day Energy Fact Sheets
People Energy Victorian Default Offer 25.17¢/kWh 113.09¢/day Energy Fact Sheets
Powerclub Powerbank Home Flat 22.58¢/kWh 78.72¢/day Energy Fact Sheets
Powerdirect Rate Saver 22.65¢/kWh 101.77¢/day Energy Fact Sheets
Powershop Shopper Market Offer 25.52¢/kWh 115.58¢/day Energy Fact Sheets
QEnergy Home Your Way 25.17¢/kWh 113.09¢/day Energy Fact Sheets
Red Energy Living Energy Saver 27.13¢/kWh 121.91¢/day Energy Fact Sheets
Simply Energy Simply Plus 25.17¢/kWh 113.09¢/day Energy Fact Sheets
Sumo Sumo Select 25.17¢/kWh 113.09¢/day Energy Fact Sheets
Tango Energy Home Select 21.01¢/kWh 107.80¢/day Energy Fact Sheets
1st Energy Prepaid Value 25.15¢/kWh 113.08¢/day Energy Fact Sheets

Rates from Citipower network in Melbourne. Rates last updated March 2020. Use our comparison tool for specific details in your area.

More about VIC Energy Networks

Electricity in Melbourne city

Customers who live in Melbourne’s city or inner suburbs are covered by the Citipower electricity distribution network. Here are the main areas within this network:

  • Armadale
  • Brunswick
  • Camberwell
  • Carlton
  • Caulfield
  • Collingwood
  • Docklands
  • Fitzroy
  • Hawthorn
  • Kew
  • Lalwyn
  • Melbourne CBD
  • Northcote
  • Port Melbourne
  • Prahran
  • Richmond
  • St Kilda
  • Toorak

Electricity in Melbourne’s northern suburbs

If you live in Melbourne’s north or north-western suburbs, what you may not know is that your electricity is supplied by the Jemena network. Here are a few examples of the areas that fall under this umbrella:

  • Brooklyn
  • Campbellfield
  • Clarkefield
  • Coburg
  • Craigieburn
  • Footscray
  • Gisborne South
  • Heidelberg
  • Mickleham
  • Reservoir
  • Roxburgh Park
  • Sunbury
  • Tullamarine
  • Wildwood

Electricity in Mornington Peninsula

The United Energy network supplies electricity to all homes within Victoria’s Mornington Peninsula, as well as Melbourne’s southern suburbs. These include but are not limited to:

  • Carrum Downs
  • Dandenong
  • Dromana
  • Fingal
  • Flinders
  • Frankston
  • Glen Waverley
  • Mornington
  • Mount Eliza
  • Mount Martha
  • Portsea
  • Red Hill
  • Rosebud
  • Shoreham
  • Sorrento
  • Springvale

Electricity in western Victoria

Residents in western Victoria and Melbourne’s western suburbs are supplied electricity though the Powercor network. These include major localities such as Ballarat and Geelong. Other suburbs within this region are:

  • Ardeer
  • Bendigo
  • Cobram
  • Colac
  • Echuca
  • Horsham
  • Kyneton
  • Maryborough
  • Mildura
  • Shepparton
  • Warrnambool

Electricity in eastern Victoria

The Ausnet network covers the eastern parts of Victoria, in addition to Melbourne’s eastern suburbs. This is a list of the suburbs that fall in this area:

  • Bairnsdale
  • Beaconsfield
  • Benalla
  • Corowa
  • Euroa
  • Hazlewood
  • Lilydale
  • Mallacoota
  • Mansfield
  • Mt Baw Baw
  • Orbost
  • Rowville
  • Seymour
  • South Morang
  • Wangaratta
  • Warragul
  • Wilsons Prom
  • Wodonga

Frequently asked questions

Canstar Blue surveyed 12,000 Australian adults across a range of categories to measure and track customer satisfaction, via ISO 26362 accredited research panels managed by Qualtrics. The outcomes reported are the results from customers within the survey group who live in Victoria, have an electricity account, and pay the bills – in this case, 2,254 people.

Brands must have received at least 30 responses to be included. Results are comparative and it should be noted that brands receiving three stars have still achieved a satisfaction measure of at least six out of 10. Not all brands available in the market have been compared in this survey. The ratings table is first sorted by star ratings and then by mean overall satisfaction. A rated brand may receive a ‘N/A’ (Not Applicable) rating if it does not receive the minimum number of responses for that criteria.

2018

Electricity_VIC_2018

2017

2016

2015

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