Compare energy plans in Victoria

Why should you compare energy plans in VIC?

Looking to save some cash on essential household bills?

We know it's not the most fun task, but taking advantage of a competitive energy market in VIC is your best bet for saving money.

For instance, the difference between the cheapest and most expensive single-rate tariff electricity plan in our database is about $720 annually.

Here are some less obvious reasons to compare energy plans:

• Discounts usually only last for the first 12 months of a plan.
• Your provider might switch you to a more expensive plan if you don't renegotiate a new contract.
• If you're moving, your current provider might not have the best deals for your new location.
• Your provider has notified you of upcoming price increases.

How do I choose an energy provider in VIC?

When you're comparing electricity or gas plans from different providers, it's important to check a few key details:

• Guaranteed discounts: These often last up to 12 months. Look for plans with the highest discounts. For electricity, these discounts are compared to the Victorian Default Offers (VDO) set by the energy regulator each year on 1 July. Aim for a plan priced below VDO. The difference is shown as a percentage, making it easier to compare electricity plans.
• Usage rate and supply charge: Compare plans by looking at the usage rate and supply charge. Usage rates dictate what you'll pay per unit of energy consumed, while supply charges are paid daily for being connected to the grid.
• Sign-up deals and extra perks: Besides the annual estimate, check for sign-up deals like $150 bill credits for new customers or rewards points for programs like Woolies and Qantas. Depending on your needs, it might also be useful to choose a provider that offers energy usage tracking.
• Additional costs: Before committing to a plan, read the terms and conditions to be aware of extra charges like credit card fees or late payment fees.

Comparing plans and tariffs

Don't zone out with this upcoming 30-second history lesson. It's important to give a little bit of context before jumping into some actionable points. Here we go.

In 2006, the Victorian state government mandated the rollout of electricity smart meters to all households and small businesses.

Smart meters record electricity usage every 30 minutes and send the data to your electricity distributor straight away. This means no more manual reads or estimated energy bills.

This is where things get a little bit complicated. Because of their capability, the pricing structure for energy plans (more specifically electricity) isn't super straightforward as there are different tariffs you could sign up for or may be put on unless you actively choose to opt-out.

Electricity tariffs

• Single rate: You'll be charged a single rate for your energy usage regardless of the time of day.
• Time of Use: Your usage rates will vary based on peak and off-peak hours. There may also be a separate rate for the 'shoulder period', which falls between peak and off-peak periods. The usage rate for peak periods is generally higher.
• Demand: Some plans include a demand charge on top of a single rate or Time of Use tariff. The charge is based on the highest point of power drawn from the grid during peak times. It can take many forms and might be charged daily based on your highest demand in a season, year, or month.
• Controlled load: This applies to households with a separate meter for appliances such as electric hot water systems or pool pumps.
• Solar feed-in tariff: Households with rooftop solar can take advantage of plans that feature a feed-in tariff. This will determine how much money you can earn for exporting excess energy to the grid.

Gas tariffs

There are two types of gas tariffs available in VIC, though most providers will favour block rates:

• Flat rate: This one's straightforward – you pay the same rate for gas no matter what time of day you use it, or how much you use.
• Block rate: Here, your rates change based on how much gas you use. For example, you might pay one rate for the first 45MJ, a different rate for the next 35MJ, and another rate for the next block of usage.

Which energy providers do we compare?

Finder compares some of VIC's most popular energy providers, including big brands such as AGL, EnergyAustralia and Origin Energy.

To make it easier, we've broken our lists for electricity and gas into two, but you'll notice some retailers offer plans for both. They're known as duel-fuel providers.

Electricity providers in VIC

Gas providers in VIC

How much does energy cost in VIC?

Usage rates for electricity and gas will vary depending on your retailer and the type of tariff you're on.

The average price of electricity hovers around 23-25 cents per kilowatt-hour (kWh), based on single rate tariff plans in our database.

Gas costs between 3.20 cents and 4.28 cents per megajoule (MJ). Gas plans usually come with tiered rates, meaning the price can vary depending on your energy usage throughout the month or quarter.

Supply charges for energy will vary depending on your energy distributor and can cost around 105.74 cents for electricity and 92.56 cents for gas.

VIC energy rebates and concessions

Energy price hikes and the general cost of living have made paying off household bills that much harder.

Fortunately, you might be eligible for one or more energy rebates or concessions such as:

• The $300 energy bill relief available to all Australian households from 1 July 2024
• Annual electricity concession
• Excess electricity concession
• Life support concession
• Winter gas concession

Most of the concessions are directed towards low-income households, seniors and concession card holders, and those with medical needs. You can read our in-depth guide for more information.

• Good to know: The state government ended its $250 Power Saving Bonus program in 2023 following four successful rounds.

How are energy prices in VIC set?

Victoria was the first state to deregulate its electricity market completely in 2009 following the privatisation of the retail energy markets in 2002.

However, the Essential Services Commission (VIC's energy watchdog) does try to make it a little bit easier for residential and small business customers to compare electricity plans.

Each year on 1 July, it sets a new Victorian Default Offer (VDO) which acts as a benchmark pricing.

Providers will need to display how their annual estimate on electricity plans stack up against the VDO. The difference will be shown as a percentage. You should always sign up for a plan that is below the VDO. The lower the better.

Renewable energy in VIC

Victoria hopes to meet 65% of renewable energy targets by 2030 and 95% by 2035.

It's also banned gas connections for new dwellings, apartment buildings and residential subdivisions which require planning permits so the state can meet its net-zero emissions target by 2045.

Elsewhere, since launching in 2018, Solar Victoria's installed over 330,000 solar panels, batteries and hot water systems for households to help support renewable energy transmission.
If you don't have solar or can't make big changes to your home to support clean energy, you could:

• Add on GreenPower: Your electricity provider can't send renewable energy directly from the grid to your home. That's where GreenPower comes in. It's a government-run scheme that allows providers to purchase renewable energy according to their usage, ranging from 10% to 100%. It's available as an add-on at an additional cost.
• Sign up to a carbon neutral plan: Don't want to spend extra money? Your energy provider will offset the carbon emissions that result from your electricity or gas usage. Some plans will state they're 100% carbon neutral, while others offer it as an option for a small fee.

"I stuck with the same energy provider for 3 years before I realised how much my loyalty (OK, laziness) was costing me. I was no longer on the cheapest plan and my electricity bill was huge. I compared plans by looking at my bill closely and finding a provider with lower hourly charges. Switching was really easy and basically just involved signing up and making an account. And now my bills are much smaller."

Richard Whitten

Editor