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Red Energy claims top spot as best-rated gas supplier in Victoria

When it comes to energy in Victoria, most of the hype is around the electricity companies and their big promises about big savings. But it’s important not to lose sight of what you pay for gas – because getting a good deal on your natural gas supply is just as important. Gas plays an important role in the lives of most Victorian families, but it’s something that’s easy to take for granted – until your next gas bill comes in! Complaining about constantly rising power costs is something we all do, but not all of us are proactive in comparing providers to try and secure a better deal, often because it’s perceived to be too difficult and ultimately a fruitless exercise. But it doesn’t have to be – and can be well worth the effort. To make the process easier, Canstar Blue produces an annual review of gas suppliers in Victoria to find out which are keeping their customers happy – and which are not! Read on for details.

This year, more than 1,700 households in Melbourne and across Victoria have given us their opinions of their gas suppliers, with their feedback reflected by the star ratings table you see above. 10 major gas providers feature in the results – judged on factors including customer service, tools & advice, bill & cost clarity and value for money – and there is a clear divide between suppliers big and small. Our aim is to give you as much information as possible to help you make an informed decision about your gas retailer. This is what we found:

Best Gas Suppliers in Victoria

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

1. Red Energy
2. Momentum Energy
3. Dodo
4. Lumo Energy
5. EnergyAustralia
6. Alinta Energy
7. Origin
8. GloBird Energy
9. Simply Energy
10. AGL

Red Energy has climbed to the top of our gas ratings table for the first time since 2017, with last year’s winner, Powershop, not receiving enough survey respondents to qualify. Like in previous years, the review highlights a notable divide in customer satisfaction between gas suppliers of all sizes. Momentum Energy, Dodo, Lumo Energy, EnergyAustralia and Alinta Energy got four stars for overall satisfaction, with Origin, GloBird Energy, Simply Energy and AGL deemed worthy of just three stars. GloBird Energy recorded the only two star rating, which was for online tools and advice.

In addition to customer satisfaction, you can see how these gas retailers stack up on price in our Victorian gas price comparison report. And you can compare their electricity and gas prices with our comparison tool below. Read on for further details about the compared gas suppliers and how you can get a better deal.

Cheap Gas Prices VIC – quick comparison

VIC Gas Suppliers

Red Energy

Red Energy is owned by renewable energy generation company Snowy Hydro, along with its sister brand Lumo Energy. Red Energy’s main selling point is its partnership with airline Qantas, which sees customers pocket frequent flyer points for every dollar they spend on energy. Two Red Energy plans include Qantas points, with up to seven points available for every $1 spent on energy, in addition to an initial windfall of 15,000 points should you sign up for both electricity and gas with Red. The provider’s other plan includes access to Red Energy Rewards – a loyal scheme that brings savings on things like movie tickets, eating out and hotels etc. Red Energy’s rates are variable so you’ll have to watch out for any unexpected price changes.

• Red Energy recorded five stars for overall satisfaction this year, while also earning five stars for its customer service. The retailer earned four stars for value for money, environmental sustainability, bill & cost clarity and ease of sign up, while it got three stars for online tools & advice.

Red Energy Gas Plans

Here the Red Energy gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Momentum Energy

Owned by renewable energy generation company Hydro Tasmania, Momentum Energy is a champion of green energy and helping Australian consumers make energy-efficient decisions. It’s also an advocate of keeping things relatively simple for prospective customers, steering clear of the big conditional discounts offered by some retailers and instead just focusing on fairly competitive rates. In Victoria, Momentum has three main residential electricity offers, and three simple products for gas customers. Like its electricity deals – which include specific plans for solar customers – Momentum’s gas plans are similar, with no discounts to be seen. Momentum’s approach to energy retail – and its obvious focus on renewables – has clearly seen it win over lots of Victorian customers. It also performed well in our 2020 review of electricity providers in Victoria, finishing fifth out of 12 in the overall rankings.

• Momentum Energy rated four stars for its customer service, bill & cost clarity, focus on environmental sustainability, value for money, ease of sign up and overall satisfaction. It got three stars for online tools & advice.

Momentum Energy Gas Plans

Here the Momentum Energy gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Dodo

If you lived in Australia in the 2000s, you’ll be familiar with Dodo, the talking bird on TV ads trying to sell you internet and phone services. But although it may be best known as a telco provider, savvy households may also be familiar with its electricity and gas deals. This retailer has just one variable rate gas plan in the state of Victoria, that comes without a contract or exit fees. There’s also usually a discount on offer for customers that choose to bundle all of their home services with Dodo. This company is owned by Vocus Communications, a retail giant behind many telco companies, and its main selling point is that customers would prefer to deal with just one company for all of their home needs.

• Taking out third place is Dodo, which scored four stars for overall satisfaction and customer service. It managed five stars for online tools and advice and for value for money. This retailer got three stars for all other categories including bill & cost clarity and ease of sign up.

Dodo Gas Plans

Here the Dodo gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date 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 basic range of electricity and gas plans. Lumo’s main plan brings competitive rates that can be locked in for a minimum term of 12 months. All Lumo deals come on a no-contract basis, plus there are no exit fees. Most plans bring access to Lumo’s ‘Lumo Rewards’ shopping program, which gives members a range of exclusive discounts on everything from groceries to petrol.

• Ranked fourth in our latest VIC gas review, Lumo Energy scored four stars for overall satisfaction, customer service and ease of sign-up. It did, however, earn five stars in the bill & cost clarity category. It scored three stars in all other categories, including value for money.

Lumo Energy Gas Plans

Here the Lumo Energy gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

EnergyAustralia

One of the biggest electricity and gas companies in the country, EnergyAustralia provides one of the most diverse product ranges of all retailers. Although, with all the choice could come confusion. Two of its gas plans include fixed rates, while the other two are variable rate plans. The retailer’s flagship fixed rate and variable rate offers include a guaranteed discount off gas usage and supply charges, and come without exit fees as an added bonus.

• In our latest Victoria gas review, EnergyAustralia earned four stars across most research categories, including overall satisfaction, customer service, bill & cost clarity, ease of sign-up and online tools & advice. For value for money and environmental sustainability, this retailer scored three stars.

EnergyAustralia Gas Plans

Here the EnergyAustralia gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Alinta Energy

A major gas and electricity retailer across the country – including Western Australia – Alinta Energy was recently acquired by a Hong Kong-based conglomerate company, but remains headquartered in Sydney. In terms of its plans, Alinta Energy keeps things markedly simple with one variable rate market offer in each state that it serves. It comes without any conditional discounts, just reasonable rates. There is no lock in contract or exit fees. Eligible customers who are with Alinta for electricity, may also choose a second plan which offers a 12-month subscription to Kayo Basic – a sports streaming service. Ranked fourth in two years in a row, Alinta Energy is currently rated best in our QLD electricity comparison.

• Alinta Energy rated four stars for customer service, value for money and overall satisfaction. It got three stars everywhere else, in categories such as environmental sustainability, bill & cost clarity and online tools & advice.

Alinta Energy Gas Plans

Here the Alinta Energy gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Origin Energy

Origin Energy has three or four different gas offers for Victorian households to pick from, depending on personal preferences and circumstances. The main offer comes with Everyday Rewards points while plans with variable rates are on offer for those who prefer to do nothing other than pay their bills. Depending on the plan, rates are either fixed or variable. Origin also has a gas plan with no discounts, just competitive rates with an ongoing benefit period. Unique quotes are offered based on previous usage history. However, this will require customers to get in contact with Origin to see if they are eligible. There are no exit fees with any Origin gas plan.

• Origin was rated three stars across most research categories, such as overall satisfaction, bill & cost clarity, environmental sustainability and value for money. For customer service, online tools & advice and ease of sign-up, this retailer scored a commendable four stars.

Origin Gas Plans

Here the Origin gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

GloBird Energy

Electricity and gas retailer, GloBird Energy, debuts this year as a new entrant to our annual Victorian gas review. The company emerged as one of the main ‘second tier’ challengers to Victoria’s power giants – AGL, Origin and EnergyAustralia. It usually offers three or four plans, all of which come with different selling points for customers to think about. One of GloBird’s deals is tailored to customers who prefer to set and forget, so long as they pay by direct debit with credit card, while the other offers to offset 100 per cent of the emissions associated with the plan. There is another option for Victorians looking to consolidate their electricity and gas, increasing the conditional discount offered, with a standard contract with basic non-competitive rates available as well. Most of GloBird’s deals also have conditional discounts for those paying by direct debit.

• GloBird Energy rated three stars across almost all categories in this year’s review, including for overall satisfaction, value for money and customer service. Its only two star rating was for online tools and advice.

GloBird Energy Gas Plans

Here the GloBird Energy gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Simply Energy

Owned by French utilities giant Engie, Simply Energy used to offer a comprehensive range of energy plans for Victorians to choose from but it now only markets a sole product. Its main gas offer comes with a guaranteed discount off usage and supply charges. Contract period is ongoing and there are no exit fees. This deal comes with variable rates and no lock-in contracts. A previous winner of our Victoria gas suppliers review, Simply Energy was rated seventh best this year.

• Simply Energy has slipped down the ranks in this year’s natural gas ratings, with its only five star for ease of sign-up. In all other areas such as overall satisfaction, customer service and focus on environmental sustainability, this Victorian gas retailer earned three stars.

Simply Energy Gas Plans

Here the Simply Energy gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

AGL

Energy giant AGL gives Victorians two gas plans to choose from, both coming in with variable rates. The retailer’s flagship offer comes with no discounts but variable rates on an ongoing contract. Customers must also agree to email communication to be eligible. Its other plan is similar, however, customers do not have to sign up to  online communication. It may not have the diverse range of products as some of its competitors, but AGL’s biggest selling points are its ‘value add’ incentives, including access to AGL Rewards.

• Placed at the bottom of our VIC gas ratings this year, AGL has almost a clean sweep of three star ratings. The only areas in which it scored four stars were online tools & advice and ease of sign-up.

AGL Gas Plans

Here the AGL gas plans on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. These are products from a referral partner†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

About the Victoria Gas Market

Victoria now has a hugely competitive gas retail market, but that hasn’t always been the case. Since 2002, households around the state have been able to move from standard contracts onto market contracts with different providers, but with price regulations, there would have been little financial incentive to do so. However, the Victorian Government lifted energy price regulations for gas and electricity in 2009, paving the way for new companies to enter the market and challenge the dominance of the incumbents. That’s exactly what’s happened, with suppliers such as Simply Energy, Lumo Energy, Momentum Energy and Red Energy offering competitive plans and often superior customer service. In more recent times, some other retailers that previously only retailed electricity have also started to sell gas. These include GloBird Energy, Powershop and Sumo.

While competition is important, it can also lead to confusion, with multiple gas plans now offered by most retailers. This makes it hard to work out which offer is right for you. However, before talking about plans, let’s first go over the basic information you’ll need to know in order to get a better deal.

Gas Contracts in Victoria

There are two types of gas contracts in Victoria – standard contracts and market contracts.

• Standard contracts are what households are likely to be on if they have not switched providers since Full Retail Competition was introduced in Victoria back in 2002. Prices on standard contracts are set by the retailers, but their terms and conditions are still controlled by the Victorian Essential Services Commission which regulates the energy industry. This means certain minimum standards are met around prices, price changes, exit fees and other T&Cs.
• Market contracts are what customers in Melbourne and the rest of the state are likely to be on if they have switched energy providers over the last few years. Market offers are almost entirely set by the energy companies, meaning they come with varying contract lengths, conditional benefits and may include exit fees. Importantly, retailers could change prices whenever they want, unless you have a fixed rate plan whereby prices are usually increased every two years.

Market contracts should always work out the cheaper option, but only if you can stick to the conditions of your plan. Failure to do so could leave you paying significantly more.

Gas Plans in Victoria

Whether you have a standard contract or market gas contract, the amount you pay will be determined by two main charges – supply costs and usage charges.

• Supply costs are what you pay to be connected to the gas network in your area. These are fixed daily charges that you’ll need to pay regardless of how much gas you actually use.
• Usage charges are what you will pay for the gas that is actually used to heat your oven or used to heat your hot water, for example. These costs can vary depending on the time you use gas, which we’ll come to shortly.

The easiest way to compare two different gas providers is to check out their supply and usage charges. In Victoria, these costs can vary significantly between the retailers. Some may appear to have cheap supply prices, but these could be made up for by higher usage rates, or vice versa. Also, be aware that most plans come with variable rate charges, meaning the amount you pay could be changed by your provider at any time. Some gas retailers offer plans with fixed rates – meaning your supply and usage charges are locked in for a set period – but there are pros and cons to these types of plans.

Gas Charges in Victoria

Natural gas prices are charged in cents per megajoule (the unit of measurement for gas). Peak time gas usage rates will typically cost between 2.5 and 3 cents per megajoule. To put this into perspective, your gas oven probably uses around 12 megajoules an hour. It’s important to have a handle on gas prices to help you monitor and act on your usage.

If you have a time of use tariff, the amount you will pay for gas will change depending on the time of day you use it. In Victoria, gas usage may also be broken into daily ‘blocks’, with the first block of power usually costing the most. For example, you could:

• Pay 2.6 cents per megajoule (MJ) for the first 100 megajoules
• Then pay 2.2 cents per megajoule for the next 100 megajoules
• Then pay 1.8 cents per megajoule for the next 100 megajoules

These rates are typical of peak-time gas usage costs. However, you can expect cheaper rates if you use gas at off-peak times. The majority of households in Victoria now have smart meters and are therefore able to use flexible pricing tariffs.

Gas Distribution Networks in Victoria

You may not realise, but one of the biggest factors in determining the prices you pay for energy is your location. Melbourne and the rest of Victoria is split between various energy distributor networks, with different companies responsible for maintaining and improving the vast infrastructure that transports gas and electricity to your particular suburb. While there are five electricity distribution networks in Victoria, households are divided into three gas networks:

• Australian Gas Networks – servicing northern suburbs of Melbourne, eastern Victoria and the Mornington Peninsula.
• AusNet Services – servicing outer western suburbs of Melbourne and western Victoria.
• Multinet Gas – servicing eastern suburbs of Melbourne.

This is useful to know – not only because these companies are who you will need to contact if you have a problem with your gas supply, or notice a gas leak, but because the network you live on has an impact on your overall costs. Energy distributor costs can account for up to 50% of your overall energy bills.

Picking your gas supplier

There are lots of things to think about when it comes to picking a gas supplier for your home. We asked Victorian respondents to our survey in 2020 about their main reasons for initially picking their gas supplier. This is what we found:

• 32% shopped around and compared plans and prices
• 23% were attracted by a big discount
• 13% just went with a retailer name they recognised
• 11% picked the retailer that appealed most to them for other reasons (e.g. green credentials)
• 10% were attracted by a different sign-up incentive (e.g. movie tickets)

Almost a third of gas customers in Victoria (32%) signed up to their supplier over the phone, the survey found, while the exact same amount signed up online. A promising 69% of survey respondents believe they get a good deal on gas, despite only 24% having switched gas suppliers in the last two years.

How to get a better deal on gas in Victoria

Whether you’re buying gas or electricity, the key to getting a better deal is understanding the different factors that determine the costs you’ll need to pay, including contract types, plans, tariffs and charges. In summary, here are some questions that are worth asking any prospective gas provider in Victoria:

• What type of contract are they offering?
• What is the contract length and are there any exit fees?
• How much are the supply and usage charges?
• What discount is available and what are the conditions?
• What other incentives/rewards can they offer?

Remember that the Victorian gas market is now hugely competitive, with more than 15 different providers competing for your business. This puts you – the paying customer – in the driving seat. Make sure you shop around for the best deal for you and don’t be afraid to switch if you’re not 100% satisfied with the price you’re currently paying or the servicing you’re receiving. With so much competition, you may even be able to benefit from a growing number of rewards programs and other sign-up incentives. Ultimately, it’s all about what gives you the best value. That could mean the cheapest prices you can find, but it may also mean you get value from other parts of the plan.

About the author of this page

This page was written and is regularly updated by Canstar Blue’s Energy Editor, Jared Mullane. He’s an expert in all things utilities, including electricity, gas and water, helping to make complicated subjects easier to understand for consumers. A trained journalist, Jared is usually one of the first to break energy-related news, whether it’s the latest changes in the industry, price movements, or the next best deal you need to know about.

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