Victoria Electricity Comparison Guide

The Electricity Market in Victoria (VIC)

Victoria's electricity market stands out due to its competitive nature and the diverse range of providers catering to different consumer needs.

Whether you're moving to bustling Melbourne or settling in the scenic Yarra Valley, understanding the nuances of Victoria’s energy landscape can help you make informed choices.

The state's deregulated market encourages innovation and competitive pricing, making it essential to compare electricity plans. Additionally, Victoria is at the forefront of renewable energy initiatives, making it an exciting place to explore green energy options.

Key Definitions for Electricity Providers in VIC

Making sense of the electricity market in any Aussie state or territory can be much simpler when you understand the basic terminology. Below are some essential definitions that will help you make informed decisions about your electricity service:

• Retailers: Companies like EnergyAustralia, AGL, and Alinta Energy that sell electricity directly to consumers. They handle everything from account management to customer service and offer a range of plans.
• Distributors: Organizations that manage the infrastructure for delivering electricity. In Victoria, these include AusNet Services, CitiPower, Powercor, Jemena, and United Energy, each serving different areas.
• Feed-in Tariffs: Payments made to those who generate their own electricity, often via solar panels, and feed surplus energy back to the grid. This system encourages the adoption of renewable energy in Victoria.
• Tariffs: The pricing structures for electricity consumption. Options in Victoria include flat rates, which remain constant, and time-of-use tariffs, which vary depending on the time of day.
• Smart Meters: Advanced meters that record your electricity use in real-time and provide this information to your energy provider. Victoria has extensively implemented these to enhance billing accuracy and energy management.
• Peak and Off-Peak Periods: Times during which electricity prices differ due to demand. Peak periods usually occur in the evening, while off-peak times are late at night or early morning, offering lower rates.
• GreenPower: A program allowing consumers to support renewable energy generation. Choosing a GreenPower plan in Victoria ensures that the electricity you use is matched by renewable energy fed into the grid.
• Kilowatt (kW) and Kilowatt-Hour (kWh): A kilowatt measures power usage rate, while a kilowatt-hour measures total electricity used over time. Billing is typically done in kilowatt-hours.
• National Energy Market (NEM): A system that facilitates the trading of electricity across eastern and southern Australia, including Victoria, ensuring competitive pricing and reliable supply.
• Energy Efficiency: Practices that reduce energy consumption, such as using energy-efficient appliances and adopting energy-saving habits. Victoria promotes energy efficiency through various programs and incentives.

History of the Victorian Electricity Market

Victoria's electricity market has undergone significant changes over the years, evolving from a state-controlled system to a competitive and privatised market. Understanding this evolution helps to appreciate the current dynamics and opportunities within the market.

Early Days: Government Monopoly

In the early days, Victoria's electricity supply was controlled by the government, with state-owned entities managing the generation, transmission, and distribution of power. This system ensured a stable supply but lacked the competitive edge needed for innovation and efficiency.

1994: Opening the Market

A significant shift occurred in 1994 when Victoria introduced retail competition for large industrial users, allowing these consumers to choose their electricity providers. This move aimed to drive down costs and enhance service efficiency.

2002: Full Market Deregulation

By 2002, the Victorian electricity market had fully deregulated, allowing all consumers, including households, to select from various electricity retailers. This deregulation fostered a consumer-centric market, with providers offering a wide array of plans and incentives.

2014: Privatisation and Increased Competition

In 2014, the Victorian government sold its remaining state-owned electricity assets, including major retailers, to private companies. This privatisation was intended to boost competition and attract private investments, leading to more innovative and competitive offerings in the market.

Recent Trends and Future Directions

In recent years, Victoria has focused heavily on renewable energy and sustainability. The Victorian Renewable Energy Target (VRET) has set ambitious goals to increase the share of renewable energy, spurring numerous solar, wind, and other renewable projects. The state is also investing in grid upgrades and energy storage solutions to ensure a reliable, sustainable energy future.

Prominent Electricity Providers in VIC

A diverse range of retailers serves the electricity market in New South Wales (VIC), each offering unique plans and services to meet the varied needs of consumers. Below is an overview of some of the prominent energy providers in VIC that you'll find on our panel (listed in no particular order):

• EnergyAustralia: One of the largest energy retailers in Victoria, EnergyAustralia offers a variety of plans that cater to both residential and business customers. Known for their competitive rates and excellent customer service, they also provide options for renewable energy.
• Alinta Energy: Alinta Energy is known for its straightforward and affordable energy plans. They focus on providing value for money with competitive pricing and no lock-in contracts, making them a popular choice among Victorian households.
• AGL: AGL is a well-established provider in Victoria, offering a wide range of energy solutions. They have various plans that include renewable energy options and benefits such as rewards programs and flexible payment options.
• Powershop: Powershop stands out for its commitment to sustainability. They offer 100% carbon-neutral plans and provide innovative tools that help customers track and manage their energy usage via a user-friendly app.
• Dodo Power and Gas: Dodo Power and Gas combines energy services with internet and mobile plans, offering bundled deals that can save consumers money. They provide competitive pricing and simple, easy-to-understand plans.
• Red Energy: Backed by Snowy Hydro, Red Energy offers flexible plans and exceptional customer service. They are known for their renewable energy options and special offers, making them a strong contender in the Victorian market.
• Lumo Energy: Lumo Energy provides competitive prices and straightforward plans. They focus on simplicity and affordability, offering discounts for on-time payments and other benefits that cater to cost-conscious consumers.
• Momentum Energy: Owned by Hydro Tasmania, Momentum Energy emphasizes renewable energy. They offer transparent pricing and are committed to sustainability, making them an attractive option for environmentally conscious consumers.
• Blue NRG: Specializing in business energy plans, Blue NRG offers competitive rates and dedicated customer service tailored to small and medium-sized businesses. Their plans are designed to help businesses manage energy costs effectively.
• OVO Energy: OVO Energy focuses on sustainability and competitive pricing. Their plans come with a green energy focus, and they provide customers with tools to monitor and reduce their energy usage, promoting energy efficiency.
• Tango Energy: Tango Energy offers no-nonsense, straightforward pricing with competitive rates. They are ideal for consumers looking for clear terms and good value without the complexity of hidden fees.

Each of these electricity providers in VIC brings something unique to the table, catering to a wide range of preferences and needs. Whether you prioritise cost savings, renewable energy, or customer service, there’s likely a retailer that can meet your requirements.

This means that the best electricity provider in VIC for your needs may differ from the ideal option for someone else's household. Understanding what each retailer offers can help you make an informed decision when selecting your electricity provider.

What is the Average Electricity Bill in VIC?

Your average bill can differ considerably from the state average based on several factors. These include the number of people in your household, your energy habits, the tariff you are on, your distributor, provider, energy plan, and whether you have solar panels.

The information provided is accurate as of May 2024.

Some of the Cheapest Plans from Electricity Providers in Sydney VIC

The table below summarises some of the cheapest plans available from electricity providers in Melbourne (postcode 3000) from a selection of providers as of June 2024. The estimated annual costs are based on the assumption of a typical residential customer with an average annual usage of 5,000 kWh connected to the Ausgrid network.

These figures should give a general view of what customers might expect to pay annually under each plan when they go to compare electricity providers in VIC. Prices and plan details vary based on specific conditions, such as usage patterns and the exact location within the network. These plans offer various benefits, including credits and fixed rates, to suit various consumer needs. Users should consider their electricity usage and consult provider-specific details for a more personalised estimate.

Please note: This is not an exhaustive list of all plans or electricity providers in Melbourne VIC, as we do not compare all brands in the market or all products offered by each brand. Pricing information is accurate as of June 2024.