Compare VIC Electricity Providers

Powershop the highest rated VIC electricity provider

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 billboard ads! This competition can be 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 1,900 electricity bill-payers in Melbourne and across Victoria have had their say on their electricity provider of choice. Eleven different providers have featured in the results, judged on key factors such as customer service, bill & cost clarity, their focus on environmental sustainability and most importantly of all, overall customer satisfaction. Competition between the electricity retailers is fierce in Victoria, but for the third year in a row, Powershop has emerged as the highest rated of the lot.

• Powershop recorded a clean sweep of five-star reviews from customers and was the only one to achieve top marks in any research category – namely customer service, value for money, tools & advice, bill & cost clarity, environmental sustainability and overall customer satisfaction.
• Alinta Energy, Lumo Energy, Momentum Energy, Red Energy and Simply Energy all achieved four stars for overall customer satisfaction. Lumo, Red and Simply also scored a creditable four stars for both customer service and value for money.
• AGL, Click Energy, Dodo Power & Gas, EnergyAustralia and Origin all rated three stars for overall customer satisfaction. They all also scored three stars for customer service, with AGL, Click and EnergyAustralia deemed worthy of just two stars on value for money.

For Powershop to top the ratings table for a third consecutive year is a superb achievement. This year’s review also highlights a gap in customer satisfaction between the big three providers – AGL, Origin and EnergyAustralia – and some of the smaller retailers, including Powershop. It’s certainly worth keeping an open mind when it comes to picking electricity providers. If you’ve never considered switching to one of the smaller electricity retailers before, now could be the perfect time. However, not all providers will be as price competitive as they may appear, so be sure to use our comparison tool above for specific offers in your area. And read on for details on the 11 electricity providers in this year’s review.

Cheap Deals on our Database

Here are the cheapest published deals from the retailers currently 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 above for a specific comparison in your area. Read on for further details on the retailers in our VIC ratings. These are sponsored products.

Brand	Features	Benefit Period	Annual Cost**
	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
	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 Garnet 27% discount off usage & supply charges for paying on time	OngoingBenefit Period	$1,149.06Annual Cost^^	Go To Site
	Mega Pack Pre-Paid approx 3 months of power 23.2% discount when product conditions are met	OngoingBenefit Period	$1,178.41Annual Cost**	Go To Site
	SmilePower Flexi No conditional discounts	OngoingBenefit Period	$1,183.11Annual Cost^^	Go To Site
	Living Energy Saver 10% pay on time discount off entire bill	OngoingBenefit Period	$1,222.17Annual Cost**	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

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 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 rather cheeky alternative to the more established retailers, regularly poking fun at ‘traditional’ energy company behaviour. 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. Powershop is based in Melbourne and is the highest rated provider in our Victoria electricity review for the third year in a row, scoring five stars from customers across all research categories.

Brand	Features	Benefit Period	Annual Cost**
	Mega Pack Pre-Paid approx 3 months of power 23.2% discount when product conditions are met	OngoingBenefit Period	$1,178.41Annual Cost**	Go To Site
	Power Saver 19.5% discount when product conditions are met	OngoingBenefit Period	$1,234.52Annual Cost**	Go To Site
	Powershop Lite No conditional discount	OngoingBenefit Period	$1,290.90Annual Cost**	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

Simply Energy

Simply Energy is typically a very price-competitive electricity provider in Victoria, offering a wide range of different plans to choose from. The company is owned by French utilities giant Engie, but remains based in Melbourne. Simply Energy is known for offering a wide range of electricity plans, including an exclusive deal for RACV members that brings an additional discount and a plan that provides ‘free’ movie tickets. It has also been known to team up with the Hawthorn Football Club to offer a specific deal for the club’s fans. Simply Energy’s electricity plans all include varying pay on time discounts off usage charges, with contracts of either 12 or 24 months. Rates are variable and exit fees may apply with some plans. Simply Energy scored four stars for overall customer satisfaction in our latest review, as well as four stars across most other research categories. It rated three stars for environmental sustainability.

Brand	Features	Benefit Period	Annual Cost**
	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
	Simply Plus 40% pay on time discount off usage charges	2 YearsBenefit Period	$1,097.47Annual Cost**	Go To Site
	Simply AFL Plus 30% pay on time discount off usage charges, bonus sign up credit available	2 YearsBenefit Period	$1,213.54Annual Cost**	Go To Site
	Simply Gold Class Plus 30% discount off usage charges, receive up to 16 Gold Class movie tickets if bills paid on time	2 YearsBenefit Period	$1,213.54Annual Cost**	Go To Site
	Simply Save 30% pay on time discount off usage charges	2 YearsBenefit Period	$1,213.54Annual Cost**	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

Lumo Energy

Lumo Energy is one of two electricity providers owned by renewable energy generation company Snowy Hydro – the other being Red Energy. Based in Melbourne, Lumo Energy offers a diverse range of energy products in Victoria, including a plan targeted at customers who rent a home and often move, as well as plans with pay on time and/or direct debit discounts, depending on personal preference. All plans have variable rates, but the details vary between products. However, one consistent theme is that conditional discounts are all applied to the whole bill, rather than just usage charges. Contracts come with no contract term and there are no exit fees. Lumo Energy also offers a ‘basic’ energy plan with no discounts but “low rates”. In our latest comparison of Victoria electricity providers, Lumo Energy achieved four stars for overall customer satisfaction and four stars in all other research categories, with the exception of environmental sustainability.

Brand	Features	Benefit Period	Annual Cost^^
	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
	Lumo Flix 5 5% discount off usage and supply charges for paying on time and by direct debit 2 for 1 HOYTS movie tickets from Monday to Wednesday	OngoingBenefit Period	$1,138.58Annual Cost^^	Go To Site
	Lumo Value 3 3% discount off usage and supply charges for paying on time	OngoingBenefit Period	$1,162.56Annual Cost^^	Go To Site
	Lumo Flix 3 3% discount off usage and supply charges for paying on time 2 for 1 HOYTS movie tickets from Monday to Wednesday	OngoingBenefit Period	$1,162.56Annual Cost^^	Go To Site
	Lumo Movers 5 5% discount off usage and supply charges for paying on time and by direct debit	OngoingBenefit Period	$1,176.83Annual Cost^^	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

Momentum Energy

Owned by Hydro Tasmania, Momentum Energy is a champion of renewable electricity generation and is seemingly on a mission to simplify energy retail in Australia by keeping its products free from conditional discounts. In an energy market where the biggest discounts don’t always mean the biggest savings – and sticking to all the conditions can be tricky – Melbourne-based Momentum Energy markets itself as being the electricity provider with great rates but no confusing discounts. In Victoria, it has two residential market offers with varying rates and no exit fees. This approach seems to have it fans, with Momentum Energy rated four stars for overall customer satisfaction in our latest Victorian review. It also achieved four stars when it comes to customer service, bill & cost clarity and environmental sustainability, but achieved just three stars for tools & advice and value for money.

Brand	Features	Benefit Period	Annual Cost**
	Solar Step-up No conditional discounts 15c/kWh Feed-in Tariff Available to solar customers only	OngoingBenefit Period	$1,183.11Annual Cost^^	Go To Site
	SmilePower Flexi No conditional discounts	OngoingBenefit Period	$1,183.11Annual Cost^^	Go To Site
	Move Mate No conditional discounts	OngoingBenefit Period	$1,257.26Annual Cost^^	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

Red Energy

The highest rated electricity provider in our NSW comparison, Red Energy keeps things simple with just three electricity market offers for prospective customers to consider. All three plans come with variable rates and no contract term or exit fees. Two plans include modest whole bill discounts for paying bills on time. These discounts are ongoing. Red Energy has teamed up with Qantas to provide frequent flyer points on two plans, the only difference being that if you opt for more points, you forego the conditional discount. All plans 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 fun attractions. Like Lumo Energy, Red Energy is owned by renewable generation company Snowy Hydro and is based in Melbourne. In our latest review of Victoria electricity providers, Red Energy earned four stars for overall customer satisfaction and the same rating in all other research categories.

Brand	Features	Benefit Period	Annual Cost**
	Living Energy Saver 10% pay on time discount off entire bill	OngoingBenefit Period	$1,222.17Annual Cost**	Go To Site
	Qantas Red Saver 10% discount, receive 2 Qantas Points per $1 spent on energy when bills paid on time	OngoingBenefit Period	$1,222.17Annual Cost**	Go To Site
	Qantas Red Plus Receive 7 Qantas Points per $1 spent on energy when bills paid on time	OngoingBenefit Period	$1,357.97Annual Cost**	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

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 across Western Australia. It also recently 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 plans in Victoria, Alinta Energy has a single market offer which comes with a substantial guaranteed discount, applied to electricity usage charges. The benefit period is 12 months, but there is no contract term, or exit fees. For keeping energy markedly simply in Victoria, Alinta Energy has been rated four stars for overall customer satisfaction this year, as well as four stars for bill & cost clarity. However, it fell down in other areas, scoring three stars for customer service, value for money and environmental sustainability, with just two stars on tools & advice.

Brand	Features	Benefit Period	Annual Cost**
	Fair Saver 30 30% guaranteed discount off usage charges	1 YearBenefit Period	$1,233.18Annual Cost**	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

AGL

Energy giant AGL typically offers three energy plans for Victorian households to choose from based on personal preferences. Some products come with notable discounts, but the conditions of these vary. AGL discounts are applied to usage charges only, with discounts dependent on paying on time. All discounted plans have a benefit period of 12 months. AGL also has a basic plan with fixed rates for 12 months, but no discount. AGL customers could also benefit from the retailer’s association with the flybuys program, with one point awarded for every $1 spent on natural gas or electricity. Switching to AGL online could also see customers collect a bonus 10,000 flybuys points. In our Victoria electricity provider ratings, AGL received three stars for overall satisfaction. It also rated three stars for customer service, bill & cost clarity and environmental sustainability. It was deemed worthy of just two stars on value for money, but scored four stars for tools & advice.

Brand	Features	Benefit Period	Annual Cost**
	Essentials Plus No conditional discount	2 YearsBenefit Period	$1,194.94Annual Cost**	More Details
	Savers 30% pay on time discount off usage charge	1 YearBenefit Period	$1,253.63Annual Cost**	More Details
	Savers Home Connect 16% pay on time discount off usage charge	2 YearsBenefit Period	$1,412.64Annual Cost**	More Details
View all electricity plans listed on Canstar Blue			**^^View important information

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 one market offer in Victoria, but the product made publically available can vary from time to time. However, prospective customers can usually expect a plan with a significant whole bill discount, provided that they pay by direct debit, pay on time and agree to receive bills via email. Click Energy plans usually come with no contract term or exit fees. However, rates are variable. Click Energy is also one of few retailers to offer a specific electricity plan for owners of electric vehicles. In our latest electricity comparison for Victoria, Click Energy earned three stars for overall satisfaction, plus three stars for customer service, tool & advice and bill & cost clarity. It scored four stars for environmental sustainability, but just two stars on value for money.

Brand	Features	Benefit Period	Annual Cost^^
	Click Garnet 27% discount off usage & supply charges for paying on time	OngoingBenefit Period	$1,149.06Annual Cost^^	Go To Site
	Sun Light 12% discount off usage & supply charges for paying on time 12c/kWh Feed-in Tariff Available to solar customers only	OngoingBenefit Period	$1,385.17Annual Cost^^	Go To Site
	Click Sun 5% discount off usage & supply charges for paying on time 18c/kWh Feed-in Tariff Available to solar customers only	OngoingBenefit Period	$1,495.35Annual Cost^^	Go To Site
View all electricity plans listed on Canstar Blue			**^^View important information

Dodo Power & Gas

Perhaps best-known as a phone and internet provider, Dodo completes the full set of home services by also selling electricity and gas. A fairly no thrills operation, Dodo Power & Gas operates with a single variable rate market contract in Victoria, usually boasting a large conditional discount off electricity usage charges. The discount is ongoing, but dependent on paying bills on time. This is a no contract agreement, with no exit fees. 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 get the convenience of dealing with the same company for all of their home services. It even sells insurance! As an electricity provider in Victoria, Dodo Power & Gas has achieved three stars for overall customer satisfaction. It also recorded three stars for customer service, value for money and bill & cost clarity, while earning just two stars for tools & advice and environmental sustainability.

Brand	Features	Benefit Period	Annual Cost**
	Market Offer 40% pay on time discount off usage charges	OngoingBenefit Period	$1,124.43Annual Cost**	More Details
View all electricity plans listed on Canstar Blue			**^^View important information

EnergyAustralia

EnergyAustralia offers a diverse range of electricity plans in Victoria, including a fixed rate deal that sees prices locked in for two years, as well as two variable rate products. The retailer says that if the wholesale cost of electricity comes down, it will pass the savings on to customers who sign up to its fixed rate plan. A large pay on time discount is also available. This deal is available on a two-year contract and exit fees apply. EnergyAustralia’s two variable rate products also come with pay on time discounts off its electricity usage charges, but there are no exit fees. EnergyAustralia also tends to offer a rebate on your first bill when you sign up online, but this may not always be available. The retailer scored three stars for overall satisfaction in our latest review of Victorian electricity providers, with three stars across all other research categories but value for money, where it scored just two stars.

Brand	Features	Benefit Period	Annual Cost**
	Secure Saver 29% pay on time discount off usage charge	2 YearsBenefit Period	$1,174.36Annual Cost**	More Details
	No Frills No conditional discount	1 YearBenefit Period	$1,257.22Annual Cost**	More Details
	Anytime Saver 32% guaranteed discount off usage charges	1 YearBenefit Period	$1,292.12Annual Cost**	More Details
	Flexi Saver 25% pay on time discount off usage charge	1 YearBenefit Period	$1,377.93Annual Cost**	More Details
View all electricity plans listed on Canstar Blue			**^^View important information

Origin

Origin provides arguably the most comprehensive range of electricity options in Victoria. It has three variable rate products, with varying discounts and conditions based on personal preference. The biggest discount is offered with direct debit payments and email billing, while the next product is targeted at those who would rather not pay by direct debit, but still pay their bills on time. Discounts are applied to usage charges and both plans have 12 month benefit periods and no exit fees. The third variable rate deal from Origin includes a small but guaranteed discount, applied to both usage and supply charges. The benefit period can be 12 or 24 months. Origin also offers the only fixed cost electricity plan in Victoria in the shape of its Predictable Plan. With this, customers pay the same price for their power every month for a year, regardless of their actual usage. Specific quotes are offered based on usage history. Origin rated three stars for overall customer satisfaction and all other research categories with the exception of tools & advice where it was awarded four stars.

Brand	Features	Benefit Period	Annual Cost**
	One Low Rate No conditional discount	1 YearBenefit Period	$1,224.22Annual Cost**	More Details
	Maximiser Online 29% direct debit discount off usage charges Only available for customers who sign up online	1 YearBenefit Period	$1,293.42Annual Cost**	More Details
	Saver Online 25% pay on time discount off usage charge Only available for customers who sign up online	1 YearBenefit Period	$1,339.64Annual Cost**	More Details
	Maximiser 24% direct debit discount off usage charges	1 YearBenefit Period	$1,351.17Annual Cost**	More Details
	Solar Boost Plus 16% guaranteed discount off usage charges 25c/kWh Feed-in Tariff Only for customers who purchase solar PV with Origin	2 YearsBenefit Period	$1,443.58Annual Cost**	More Details
View all electricity plans listed on Canstar Blue			**^^View important information

Our customer ratings featured on 9 News Melbourne, which you can watch below.

List of Electricity Providers in Victoria

Our customer ratings for 2018 feature 11 of the most prominent electricity providers in Victoria, but it’s important to say there are several other, smaller providers that may also be worth considering, including some that only operate in Victoria. Here is a complete list of electricity providers in Victoria.

• AGL
• Alinta Energy
• Amaysim Energy
• Click Energy
• Commander
• CovaU
• Diamond Energy
• Dodo Power & Gas
• EnergyAustralia
• Globird Energy
• Lumo Energy
• Mojo Power
• Momentum Energy
• Origin
• People Energy
• Powerdirect
• Powershop
• QEnergy
• Red Energy
• Sanctuary Energy
• Simply Energy
• Sumo Power
• Tango Energy (formerly Pacific Hydro)
• 1^st Energy

About the 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 products and prices, with minimal legislative interference. 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 retailers, 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 also continues to rise, most recently blamed on the closure of the Hazelwood Power Plant in Victoria back in 2016, 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.

Electricity Contracts in Victoria

There are two types of electricity contracts that a household in Victoria could be on – standard contracts and market contracts. Knowing which type you have is the first step to saving money.

• Standard contracts: These are default energy contracts which households in Melbourne and the rest of Victoria will still be on if they have never switched providers. They have prices set by the retailers, but also come with certain rules set by the Essential Services Commission. Standard contracts (also known as standing offers) are ongoing contracts and have no exit fees. Electricity companies must offer a standard contract in addition to their market offers.
• Market contracts: These are contracts set almost entirely by the energy retailers. They can come with varying contract lengths, discounts and benefit periods. These are the plans that are heavily promoted by the retailers and can provide the opportunity for customers to cut costs, provided they stick to the conditions.

According to the Essential Services Commission, one in ten households in Victoria remains on a standard electricity contract. Canstar Blue’s electricity database shows that customers could save hundreds a year by switching from a standard contract to a market contract, even with the same retailer. Further savings could even be made by switching providers. The difference between the cheapest market offer and the most expensive standing offer is $2,400 a year, based on a typical family of five in Melbourne. Switching from a standard contract to a market offer is an easy way for people to save money on electricity costs, but finding the best market offer for you is not an easy task.

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 grid. Supply charges in Victoria typically cost around $1 per day and remain the same every day no matter how much energy you use.
• Usage charges: These are the rates you pay for actual electricity usage. Depending on different tariffs (which we’ll come to), usage charges can vary considerably. Standard peak usage charges in Victoria can cost anywhere from 28 to 44 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 fixed daily supply costs as these will make up a higher proportion of overall costs.

Electricity Plans in Victoria

With more than 20 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 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 electricity companies have fixed rate plans. With these, you effectively lock-in supply and usage charges for a set period, usually 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 are usually only offered by the big energy providers, AGL, EnergyAustralia and Origin. However, Tango Energy is also known for competitive fixed rates.

Electricity Discounts in Victoria

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

• Pay your bills on time
• Pay bills by direct debit
• Receive bills via email
• Some retailers will also add an extra discount if you sign up online

Discounts usually apply to electricity usage charges only, but some retailers provide discounts off your entire bill. While tempting, it’s important to compare energy plans based on their base rates as well as the conditional discounts. Failing to meet the conditions of a discount will mean you are left paying the non-discounted rate, which will be much higher. You will 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 will have to pay the full price.

Other Incentives

If big discounts don’t appeal, you will find a range of other sign-up incentives offered by the electricity companies in Victoria in an effort to get you on board. Simply Energy, for example, has a plan that brings ‘free’ Gold Class movie tickets throughout the year, while Red Energy and Lumo Energy provide rewards programs that provide money off things like gift cards, theme park tickets and holiday packages. It’s also common for retailers to offer up to $100 off your first bill when you sign up online.

Electricity Tariffs in Victoria

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 ‘peak rate 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 will be charged different electricity rates depending on when you use power. These rates are often 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 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 most power at off-peak times. However, picking the wrong tariff for your usage habits could prove a costly mistake. Demand tariffs are also starting to be made available in Victoria.

Controlled Load Tariffs

In addition to single rate and time of use tariffs, households in Melbourne and the rest of Victoria can also benefit from a controlled load (also called a dedicated circuit). A controlled load is a dedicated metering connection that allows you to pay for high-usage appliances at a cheaper rate. A dedicated circuit is usually only applied to electric hot 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

The other big factor that could impact the size of your next electricity bill is your location. Victoria has five different electricity distribution networks and the cost of supplying power to your home is different depending on which network you happen to live within. While the energy 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 customers, the suburb you decide to live in will impact your energy bills. 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 plan 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, it’s worth looking into.

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 even where you live. To give you an idea of where to find the cheapest energy rates in Victoria, however, Canstar Blue has a cost comparison page, showing plans from some of the major providers mentioned in this report. Being the cheapest provider does not 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 more-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. standard 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?
• Can you add a controlled load (dedicated circuit) for water heating?

You will find the answers to these questions 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.

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