Mon-Fri 9AM to 8PM (AEST)When it comes to energy plans, Victorians do things a little differently from the rest of the country. But, just like everyone else, if you live in Victoria you are probably feeling the pinch of energy price rises in 2023.
Understanding how the Victorian energy market works can help you compare with confidence and unlock potential savings on your bill.Â
In this article, we will explain the role of The Essential Services Commission (ESC) and the Victorian Default Offer (VDO) and guide you through the process of comparing energy plans by looking at rates, tariffs, discounts, special offers and bundles. Armed with this knowledge, you’ll be empowered to make informed decisions and reduce your energy costs in Victoria.
What is the Victorian Default Offer (VDO)
The cost of electricity in Victoria all starts with the VDO. The Victorian Default Offer (VDO) was introduced by the Victorian government in 2019, following years of increasing energy costs after the deregulation of the energy market in 2009.ÂVictoria electricity providers use the VDO in two ways. Firstly, it is the reference price for their ‘standard’ or ‘basic’ plan. This plan will usually be equal to the VDO and their most expensive option. Secondly, the price of their market offers must be shown as a percentage of the VDO. This is to make it easier for customers to effectively compare electricity in Victoria from different providers.
In other deregulated electricity markets, including New South Wales, South Australia and South-East Queensland, the electricity price is determined by the Default Market Offer (DMO), which works in a similar way to the VDO.
Important information about the price of electricity in Victoria (2023)
The Essential Services Commission (ESC) has announced that the price of the VDO will go up in July 2023 by 25%. This will impact around 400,000 households and 55,000 small businesses in Victoria.
Call CheapBills today to talk about a fixed-rate plan that will help you avoid the increase.
What tariffs apply to Gas and Electricity in Victoria?
Electricity Tariffs
While the VDO determines the base cost of your electricity supply Victoria, the amount you actually pay depends on the tariff, or tariffs, applicable to your plan.The most common types of tariffs from electricity providers in Victoria are Flat Rate, Time Of Use (ToU) and Controlled Load.
- Flat Rate Tariffs – Compare Electricity Victoria
- Time Of Use Tariffs (ToU) – Compare Electricity Victoria
To access a ToU tariff, you need a smart meter to accurately track the time of day you use your power. In 2006, a mandatory state-wide rollout of smart meters took place, meaning that all residents now have access to cheaper, off-peak electricity rates from electricity providers in Victoria.
- Controlled Load Tariffs – Compare Electricity Victoria
Gas Tariffs
Gas providers in Victoria offer two types of gas plans – a standard contract and a market offer. Similarly to electricity, the standard contract is usually equivalent to the government-regulated gas price and is the most expensive plan.Market offers usually include discounts and incentives from the provider, offering better value for your plan. However, a market offer often includes a fixed-term contract with exit fees, so make sure you understand all the terms of your plan when you compare gas Victoria.
What Types of Plans are Available for Electricity and Gas Victoria?
When you compare plans for gas and electricity Victoria, there are a couple of important things you should look out for, as well as great rates and tariffs.- Fixed vs Variable Rates
A fixed-rate plan means that your rates will not change for the duration of your benefit period (usually 12 months). This can give you peace of mind that your bill won’t shoot up if energy prices change.
On the other hand, a variable rate plan means that the price you pay can change with 30 days prior notice. Variable rates are often cheaper than fixed rates but can be a risky option in a volatile energy market.
- Lock-In vs No Lock-In Contracts
No lock-in contracts give you the flexibility to change plans at any time without penalties. You should consider your personal circumstances to decide which option is best for you, or talk to an energy expert at CheapBills.
Concessions, Rebates and the $250 Power Saving Bonus
The state government has a range of initiatives available to make sure all Victorians have access to affordable power.
As well as existing rebates for pensioners, concession card holders and low-income families, the Energy Compare VIC $250 Power Saving Bonus is available for all Victorian households to help ease the financial strain of the energy crisis.
You can access some of these concessions through gas and electricity providers in Victoria, so it’s a good idea to know what you are eligible for before you switch plans.
How do I Compare Energy Victoria with CheapBills?Â
Our 100% free comparison service gives you access to expert advice to help you compare electricity Victoria and switch to a cheaper plan.- Understand your energy needs
- Compare tariffs from our panel of preferred providers
- Consider special offers, discounts and rewards programs
- Choose the right plan to save you money
- Look for a bundle that will save you MORE
Once you have decided on the right plan, we will take care of all the arrangements to switch to your new provider, with no interruption to your service and no stress!
Who is the Cheapest Electricity and Gas Supplier in Victoria?
There are over 30 gas and electricity providers in Victoria and it can be tempting to just look for the one with the cheapest rate and lock it in. Usually, the cheapest electricity and gas in Victoria comes from one of the Big Three – EnergyAustralia, AGL and Origin. This is because they are energy generators as well as retailers, which gives them access to low-cost wholesale power.
However, as you have learned in this article, cheap rates are only one part of finding gas and electricity providers in Victoria that will save you the most money overall. You need to consider all the factors we have discussed to make sure you have the right fit for your home.
Next Steps
It’s important to compare plans for electricity and gas Victoria to find a cheap deal for your home’s energy. To effectively compare energy Victoria, you need to understand the VDO, rates and tariffs and your home’s unique energy usage. You also need to be aware of the special offers, discounts and incentives on offer to make sure you get the best long-term savings.Â
You can get free expert advice about all of these factors by calling CheapBills on 1300 786 045. We will compare energy plans from our preferred suppliers to find out if you could be saving money on your power bills.Â
Useful Information About Electricity and Gas in Victoria
What are the charges on my bill for gas and electricity Victoria?
The cost of electricity and gas Victoria is made up of several charges. These will be shown separately on your bills so that you can see exactly how much you are paying for each charge.
- Daily/Supply fee: This is the distributor’s fee to cover the cost of the gas or electricity supply Victoria. It includes the maintenance of pipes, power lines and poles, meter readings and a range of other tasks involved in transmitting power around the state.
- Electricity usage charge: This is the fee for the power you use each billing cycle. It is based on the tariff you have chosen. You will see separate charges for each of the different rates applicable to your plan e.g. off-peak usage charge, peak usage charge, and controlled load usage charge.
- Gas usage charge: Â This is the fee per MJ of gas used in every billing cycle. If your gas meter reading has not been done on time, you will receive an estimated bill which will be corrected after the next meter reading.
- Discounts: If your plan for gas and electricity Victoria includes any discounts, such as for your payment method, paying on time or unconditional discounts, these will be shown as a separate item on your bill.
Victorian Energy Distributors
Gas and electricity Victoria are transported around the state, from the generators to your home, by energy distributors.Â
Distributors are responsible for maintaining a reliable gas and electricity supply Victoria, through a network of transmission pipes, power lines and poles. They are also responsible for metering services.
You cannot choose your distributor because it is determined by the area you live in. If you require metering services such as repairs or additional readings, or if you have a power outage, you should contact your distributor.
Electricity Distributors Victoria
The electricity supply Victoria is maintained by these 5 distributors.
- Citipower – Melbourne City and inner suburbs
- Ausnet Services – Outer northern and eastern suburbs and eastern Victoria
- Jemena – Northern and north-western suburbs
- Powercor Australia – Western Victoria and western suburbs
- United Energy – Mornington Peninsula and southern suburbs
Gas Distributors Victoria
There are 3 gas distributors servicing Victorian residents.
- Ausnet Services – Western Melbourne City and western suburbs, central and western Victoria
- Australian Gas Networks – Merrifield, Mildura, Heathcote/Wandong Junction and Koo Wee Rup
- Multinet – Southern and Eastern Melbourne City, southern and eastern inner suburbs, south Gippsland and Yarra ranges
Victorian Energy Retailers
Since the deregulation of the energy market, there have been many Victoria electricity providers and gas retailers entering the scene to offer competitive rates.Â
The list below shows the Victoria electricity providers currently available. Please note: CheapBills does not compare plans from every retailer in the market. We have carefully selected our panel of preferred suppliers to bring you great deals.
Victoria Electricity Providers
- 1st Energy
- AGL
- Alinta Energy
- Blue NRG
- CovaU
- Diamond Energy
- Discover Energy
- Dodo Power & Gas
- Elysian Energy
- Energy Locals
- EnergyAustralia
- GloBird Energy
- Kogan Energy
- Lumo Energy
- Momentum Energy
- Origin Energy
- OVO Energy
- People Energy
- Powerclub
- Powerdirect
- Powershop Australia
- QEnergy Limited
- Red Energy
- Simply Energy
- Sumo
- Tango Energy
Victoria Gas Providers
There are lots of options when you compare gas Victoria. Some of the best deals can be found by bundling your electricity and gas with the same retailer, and as a bonus, it means you will only have one bill to pay for all your energy usage.
The list below shows you the options to compare gas Victoria. Please note: CheapBills does not compare plans from every retailer in the market. We have carefully selected our panel of preferred suppliers to bring you great deals.
- 1st Energy
- AGL
- Alinta Energy
- CovaU
- Dodo Power & Gas
- EnergyAustralia
- Globird Energy
- Kogan Energy
- Lumo Energy
- Momentum Energy
- Origin Energy
- Powershop Australia
- Red Energy
- Simply Energy
- Sumo
- Tango Energy
