How to Compare Electricity in Melbourne

Which electricity distributors operate in Melbourne? 

It’s no secret that Melbourne is a big place, even for the electricity industry. As a result, there’s five distributors helping keep the lights on across the city and suburbs. Unlike Electricity Retailers, you can’t pick your distributor — who you’re with will depend on where in Melbourne you live. 

• Western suburbs: Powercor Australia 
• Outer northern and eastern suburbs: Ausnet Services 
• Southern suburbs and the Mornington Peninsula: United Energy Distribution 
• City and inner suburbs: Citipower 
• Northern and north-western suburbs: Jemena 

In your day to day, knowing your distributor won’t make much of a difference. But it can come into play when looking at Electricity Plans, particularly if you want to go for the Victorian Default Offer. At its heart, the VDO isn’t the cheapest Electricity Plan around, but the Essential Services Commission aims for it to stop customers paying too much for their electricity while also covering the retailer’s costs for getting that electricity to you. That includes taking into account your physical location. Hence, knowing your distributor means you’ll know which VDO pricing is relevant for you.

Which Electricity Providers operate in Melbourne? 

If you thought Melbourne had a smorgasbord of distributors, just wait until you see how many Electricity Retailers there are. Some of these retails include: 

• AGL 
• EnergyAustralia 
• Lumo Energy 
• Origin 
• Red Energy 
• Engie 

With this many providers on the list that’s a lot of Electricity Plans to compare!

Why might I want to switch Electricity Providers? 

Your relationship with your Electricity Provider isn’t like a marriage. They aren’t helping you put the kids to bed or making memories with you on that once-in-a-lifetime holiday, after all. As a result, if another Electricity Provider catches your eye, you’re free to follow your heart — once you’ve done your research. 

You might want to switch Electricity Plans to make the most of lower or fixed rates. Alternatively, a new Electricity Plan might come packed with deals and discounts that you know you’re going to get your money’s worth with. Changing plans can even just be a part of life. If you’re moving house, you’re getting off gas or you’ve just got solar panels put in, a new Electricity Plan might be in order. 

Of course, when it comes to switching, it can really pay to size up the competition. That way you can make an informed decision.

Helpful Tip:

Many of Melbourne’s energy providers now offer carbon-neutral plans for their customers. This allows climate-conscious customers to cancel out their home emissions through carbon offsets: investments in things like wind turbines and carbon storage.

Some providers even offer this option at no extra cost! So, if you’re climate conscious , it’s worth checking out whether your provider offers this option.

Dean Ipaviz

Sustainability Expert and Presenter

How much does electricity cost in Melbourne? 

It’s no secret that power prices have been leaving everyone feeling a little stressed since 2021 and that pesky global energy crisis. In fact, when we surveyed 1,000 Aussies in late 2023, only 8% of them felt they were easily coping with higher power bills.¹iSelect commissioned i-Link Research to conduct a national online survey between 2 November and 7 November 2023. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+. All this is to say we get it if cost is the main thing on your mind when switching. 

What’s important to remember though as you compare Electricity Plans and pricing is that you’re really dealing with more than just one number. You might have a few different charges coming together to make that final bill amount. 

• Supply charge: This is the daily cost of keeping your place connected to the electricity grid. It won’t go up or down, no matter how much electricity you use in a day. 
• Usage charge: This is where your electricity use comes into play, along with tariffs. Depending on how much electricity you use in a day — and sometimes when you use it — this charge will change. 
• Single rate tariff: This is a flat rate for your usage charge which can make it easy to figure out what your electricity bill will look like if you know your average daily usage 
• Time-of-use tariff: This usage charge takes into account when you use your electricity. For instance, it might come with a higher rate during peak demand times in the evenings but a lower rate for during the middle of the day. 
• Controlled load tariff: If you’re lucky enough to have a pool or heated flooring, you could have those electricity-hungry appliances on a separate meter and usage rate to help smooth out your bills 
• Demand tariff: This tariff takes into account your usage as well as the demand you put on the electricity grid, particularly at peak times 
• Solar feed-in tariff (FiT): With solar panels, you can put electricity back into the grid and get paid for it 
• Late fees: These are more likely to hurt your wallet than the late fees that come from your local library. Pay your bill late and you might find it got bigger while you weren’t looking. 
• Discounts: From signing up to a particular plan to paying by direct debit, you might be able to shave a little off your bill 

Figuring out if one of these charges or tariffs is leaving you wanting on your current Electricity Plan could give you a great place to start comparing from. For instance, you might want to look at time-of-use tariffs if you can switch your electricity habits to be out of peak demand times. Alternatively, you might want to make the most of your solar power and panels with a high FiT. 

With these charges and tariffs, too, you can see how they’d play out with your regular electricity usage. This is where you’ll see how much you could be paying on different Electricity Plans, whether you call Melbourne home or not.

How do I change Electricity Providers? 

Switching Electricity Providers is so easy, you shouldn’t even break a sweat. 

1. Get comparing: Use the iSelect online comparison tool or call our Energy comparison experts on 13 19 20 to get a personalised line-up of Electricity Plans from a range of providers.

2. Fill out your details: Once you’ve picked your new favourite plan, it’s just a matter of entering your details and sending them off to your new provider.

3. Sit back and let your new Electricity Provider handle things: You don’t have to send a resignation letter to your old provider. Your new Electricity Retailer will close things off with your ex and let you know when the switch is happening. You won’t even lose electricity.

If you’re looking for an extra smooth transition, there’s a few things you can do. For starters, take the time to read the fine print on your next Electricity Plan. This could help stop any nasty surprises from getting the jump on you.  

Speaking of fine print, you might want to double-check your old plan and see if there’s any exit fees. If you signed a fixed contract with your old provider, you may need to pay a fee to break it.  

Where can I compare Electricity Providers in Melbourne? 

If it’s time for greener grass, iSelect can help you compare a range of Electricity Plans from a selection of providers. You can get started right now — even if you’re still in your PJs — with our online comparison tool or by calling our Energy comparison experts on 13 19 20.