Cheapest electricity providers in VIC (top 10 deals)
Here are 10 of the cheapest deals from electricity providers for residential customers in Victoria, according to Money.com.au’s analysis:
1
Tango Energy
Value Select
2
ENGIE
ENGIE Perks
3
OVO Energy
One Plan
4
Momentum Energy
Warm Welcome
5
Kogan Energy
Free FIRST
6
Pacific Blue
Blue First
7
Alinta Energy
HomeSaver Essential
8
Nectr
100% Clean
9
Powershop
Switch Saver
10
Arcline by RACV
Home Energy Plan
This list is based on Money.com.au’s analysis of Melbourne electricity providers in the comparison table above. Information is accurate as of 22 October 2024.
The Victorian energy market is one of the most active in Australia, meaning you can use the power of comparison to shop around for the best electricity deals. It only takes a few minutes to compare options, and switching to a cheaper plan could save you hundreds of dollars each year.
Average electricity bill VIC
In Victoria, the average electricity bill is approximately $1,655 per year, or about $413.75 per quarter. This estimate is based on the Victorian Default Offer (VDO) that’s set by the Essential Services Commission (ESC) for the 2024-25 period, and applies to residential households on a single rate tariff without a controlled load.
It’s worth noting that VDO prices will vary depending on your location in Victoria. The good news is that these default prices have decreased by 6% for residential customers compared to the previous year, according to Energy.gov.au.
While the Victorian Default Offer regulates standing offer prices to prevent power companies from overcharging you if you don’t shop around, there are often better deals available. Many energy companies provide a range of 'market offers' that are typically more competitive in both pricing and benefits.
For instance, the VDO price for a residential household on a single rate tariff in Melbourne’s Citipower network is $1,456 per year. In comparison, the lowest market offer available on the same network is currently $1,036 per year, resulting in savings of over $400 annually.
Energy bills are often one of the biggest ongoing expenses for households, and costs tend to only move in one direction. With this in mind, we recently conducted a survey that found 27% of Victorians consider energy bills to be their most dreaded bill.
Cheapest electricity rates in VIC
Some of the cheapest electricity rates in Victoria are currently offered by Tango Energy, ENGIE, OVO Energy, and Momentum Energy. You can expect usage rates of around 20-25 cents per kilowatt-hour (c/kWh) and supply charges between 80-105 cents per day, according to Victorian Energy Compare.
Keep in mind that the above electricity rates apply to residential customers on a single rate tariff in Melbourne on the Citipower distribution network, as of 22 October 2024.
Contact your energy provider to check if you’re on the best plan for your needs. This might include discounts for paying on time or setting up direct debits, as well as plans that offer better rates for reducing energy use during peak times, like weekday afternoons. Your energy company is required to inform you if they have better deals available.
How to find the best energy plans in VIC
Low usage rates
Your electricity usage rates will likely have the most significant impact on your bills, as this cost is based on the amount of electricity you consume, measured in cents per kilowatt-hour (c/kWh). If your household has high energy consumption, a lower usage rate can lead to significant savings. Even a slight difference in the rate can result in considerable savings over time, particularly for families with high energy demands or those frequently using appliances like air conditioning and heating. In Victoria, a low usage rate generally falls between 20 to 25 c/kWh.
Reasonable supply charges
Electricity supply charges are a significant factor in rising energy costs, especially for households that consume less power. These are fixed daily fees that you pay to remain connected to the grid, regardless of your electricity usage. For low-energy users, supply charges can make up a larger percentage of the total bill, leading to higher costs relative to consumption. In Victoria, a reasonable supply charge typically ranges from 80 to 100 cents per day.
Discounts and incentives
Discounts and incentives, such as sign-up credits or ongoing bill credits, can provide added value for energy consumers. Some retailers in Victoria offer "conditional" discounts, which require you to meet specific criteria, like paying your bills on time or setting up direct debit payments. Other discounts may be "guaranteed," meaning the retailer automatically applies them to your bill — either on the usage portion or the total, including both usage and supply charges. These discounts or bill credits can help offset higher usage and supply costs.
The benefit period
The benefit period refers to the duration of your energy plan's contract and the time you'll enjoy any discounts, incentives, and the usage and supply rates you initially signed up for. Typically, benefit periods last 12 or 24 months, although some retailers in Victoria offer ongoing contracts that allow you to maintain those benefits as long as you remain with them. Energy retailers must notify you at least 20 business days before the benefit period is set to expire or change.
Hidden fees
Other fees that can impact your overall costs include credit card payment processing fees, paper bill charges, late payment fees, and connection fees if you reside in a newly built property. You may also encounter disconnection or reconnection fees, which are imposed by the energy distributor and passed on to your retailer.
Customer service
One often overlooked factor is the quality of customer service and support provided by your energy retailer. Be sure to check online ratings, social media feedback, and any awards they may have received. Additionally, consider whether they offer user-friendly apps that can help you manage your bills and monitor your energy usage.
It’s mandatory for Victorian energy providers to inform customers at least once every four months of how much they could save by switching to the best energy plan they offer.
Understanding the Victorian energy market
VIC electricity distribution networks explained
Not to be confused with retailers, electricity distributors are the companies that maintain critical energy infrastructure, such as the grid and power lines. Distributors are also responsible for providing customers within their network an uninterrupted supply of power to their homes and businesses.
In Victoria, there are five electricity distributors:
- Ausnet Services: Delivers power to 802,000 customers across eastern and north-eastern Victoria.
- Citipower: Services 332,000 customer connections in Melbourne CBD and inner suburbs.
- Jemena: Distributes electricity across Melbourne’s northern and north-western suburbs to 370,000 customers.
- Powercor Australia: Supplies power to 844,000 customer connections in the western suburbs of Melbourne and western Victoria.
- United Energy Distribution: Takes care of 700,000 customers in Melbourne’s southern suburbs and the Mornington Peninsula.
Distributors are not responsible for handling billing enquiries, but rather look after new building connections and meters (in cooperation with retailers) as well as restoring power when outages happen. Depending on which network you live on in Victoria, you’ll have a benchmark price to compare energy plans from, known as the ‘Victorian Default Offer’ or ‘VDO’. See below for current VDO amounts according to the distribution network:
| Distributor and average household annual electricity usage | Average annual cost (VDO) for household on a single rate tariff |
|---|---|
Ausnet Services (4,000kWh) | $1,902 |
Citipower (4,000kWh) | $1,456 |
Jemena (4,000kWh) | $1,664 |
Powercor Australia (4,000kWh) | $1,699 |
United Energy Distribution (4,000kWh) | $1,554 |
Can you choose your own energy provider in Victoria?
Yes, most residents and small businesses can choose their own electricity and gas retailer in Victoria. In regional areas, there may be limited options, particularly for natural gas, or you may live in an area where only Liquefied Petroleum Gas (LPG) is available. In general, customers in most areas will have a choice of their preferred provider, including if they live in:
- Melbourne
- Geelong
- Ballarat
- Bendigo
- Shepparton
- Melton
- Mildura
- Warrnambool
VIC electricity providers you can choose from
- 1st Energy
- AGL
- Alinta Energy
- Amber Electric
- Arcline by RACV
- CovaU Energy
- Diamond Energy
- Dodo
- Energy Locals
- EnergyAustralia
- ENGIE (formerly Simply Energy)
- Flow Power
- GloBird Energy
- Kogan Energy
- Lumo Energy
- Momentum Energy
- Nectr
- Origin
- OVO Energy
- Pacific Blue
- Powershop
- Red Energy
- Sumo
- Tango Energy
Some electricity providers above may not be taking on new customers at this point in time. Recent spikes in wholesale energy prices have meant that some retailers have chosen to only service their existing customers.
VIC energy rebates: Are you eligible?
1
Energy Bill Relief Fund
A rebate of up to $300 per household is available for eligible concession cardholders for the 2024-25 financial year. Payments will be made in four quarterly instalments, starting in August 2024, followed by October 2024, January 2025, and April 2025.
2
Excess Electricity Concession
Eligible applicants with annual electricity costs exceeding $4,217.85 will receive a 17.5% concession on their usage and supply charges. This applies to holders of Pensioner, Health Care, and Veterans’ Affairs Gold concession cards.
3
Life Support Concession
Provides financial assistance to eligible households that need life support equipment, such as oxygen or dialysis machines, due to medical conditions. This concession helps reduce electricity costs with a discount equivalent to 1,880 kilowatt-hours per year (or 470 kWh per quarter).
4
Medical Cooling Concession
Offers financial assistance to eligible households that need cooling for medical reasons, such as managing chronic health conditions. It provides a 17.5% discount on electricity usage and service costs from November 1 to April 30.
5
Utility Relief Grant Scheme
Provides financial assistance to eligible households facing temporary financial hardship, helping them cover their utility bills. It provides a rebate of up to $650 for each utility (electricity, gas, or water) within a two-year period.
6
Non-mains Energy Concession
Eligible concession cardholders who use non-mains energy for heating and cooking, including LPG, can claim an annual rebate based on their expenditure. Current rebates range from $56 to $634, depending on the amount spent.
7
Winter Gas Concession
Eligible concession cardholders can receive a 17.5% discount on gas usage and service costs to help manage rising expenses during winter. Households with bills exceeding $2,499.14 from May 1 to October 31, 2024, are eligible to apply.
8
Excess Gas Concession
Households with domestic mains gas usage and service costs exceeding $2,499.14 are eligible for a 17.5% concession if they hold a Pensioner, Health Care, or Veterans’ Affairs Gold card.
