Is an All-Electric Home Cheaper to Run Than Gas in Victoria?
Every month, many Victorian households pay just to stay connected to gas, before they have heated a single drop of
In this Guide
Background of Victoria's Energy Market
Victoria started opening its electricity market to competition in the 1990s and joined the National Electricity Market (NEM) in 1998. Full retail competition began on 13 January 2002, giving households and small businesses the choice of electricity retailer. Retail price regulation ended in 2009. The Victorian Default Offer (VDO) was then introduced on 1 July 2019 as a regulated standing-offer price and market comparison benchmark.
Compare Electricity Plans Victoria
Your electricity plan may no longer be giving you a competitive deal. Compare Electricity Plans Victoria by annual cost, usage rates, daily supply charges, tariffs and solar benefits before your next bill arrives.
Cheap Bills helps Victorian households and businesses compare eligible plans from participating providers before choosing or switching.
Key Takeaways
- The 2026–27 Victorian Default Offer (VDO) applies from 1 July 2026 to 30 June 2027.
- The average residential VDO flat-tariff bill is $1,591 a year, based on 4,000 kWh annual usage.
- VDO annual bills vary by Victorian electricity zone, from $1,481 to $1,748.
- Current market offers can sit below the VDO, but rates, tariffs and conditions vary.
- Solar households should compare grid rates as well as Solar Feed-in Tariffs Victoria.
Why Compare Electricity Plans in Victoria?
Electricity prices can differ by hundreds of dollars between plans, even when household usage stays the same. An Electricity Comparison Victoria should therefore look beyond discounts and sign-up credits.
In September 2026, selected CitiPower market offers for a household using 4,000 kWh a year were around $1,160–$1,230 annually. The 2026–27 CitiPower VDO is $1,481, although actual costs vary by address, usage and tariff.
Compare the estimated annual cost, kWh electricity rate, daily supply charge, tariff, discounts and contract conditions before choosing between Electricity Plans VIC.
Electricity Rates Victoria: What Should You Compare?
Your electricity bill is mainly affected by how much electricity you use and the rates attached to your plan. The Victorian Government explains that electricity bills include a fixed supply charge plus usage charges based on the electricity consumed.
When comparing Electricity Rates Victoria and Electricity Prices Victoria, check:
- Usage charge: cents charged for each kWh consumed.
- Daily supply charge: fixed daily cost of having electricity supplied.
- Tariff: single rate, Time of Use, controlled load or demand pricing.
- Plan conditions: discounts, credits, payment requirements and benefit periods.
- Annual estimate: a more complete indication of likely plan cost.
You can also review how electricity charges appear on a bill through Victorian Government energy bill guidance.
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What Is the Victorian Default Offer?
The Victorian Default Offer is a regulated electricity price for eligible customers on standing offers and an important benchmark when comparing market offers.
For 2026–27, the Essential Services Commission set representative residential flat-tariff VDO bills, assuming 4,000 kWh annually, at:
Area | 2026–27 VDO Annual Bill |
CitiPower | $1,481 |
United Energy | $1,529 |
Jemena | $1,563 |
Powercor | $1,633 |
AusNet | $1,748 |
The Victorian average is $1,591, down about 5% from $1,675 in 2025–26. These are representative VDO bills, not a prediction of what every household will pay.
According to the Essential Services Commission’s 2026–27 Victorian Default Offer determination, the VDO applies from 1 July 2026 to 30 June 2027.
