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It’s no wonder then, that Victorians need to keep a sharp eye on their electricity consumption. If you’re not careful, those bills can mount up, so it’s always worth checking around to see if you can get a better deal on your electricity.
When you’re comparing electricity prices in Victoria, there’s a lot to consider. In 2009, Victorian electricity prices were deregulated enabling providers to set their own prices, and that means that there’s a lot of competition out there for your business. With such a competitive market, Victorians are well advised to compare their electricity costs on a regular basis. You could soon be switching to a cheaper price.
When comparing your electricity in Victoria, there are generally some different options available so make sure you’re comparing apples with apples, or at least, the same types of plans with each other.
As well as the actual rates, you must also take into account fees, charges, discounts and contracts, as they all may affect your monthly costs.
A tariff is the word used to describe how your electricity provider charges you. It can vary between plans.
What tariff you pay may depend on the way your electricity meter is set up. This can vary between geographical locations. Most meters are set up on a single rate. So whenever during the day you use the power, your electricity rate will be the same.
However, there are other tariffs which may be available. Which one is available to you will often depend on your meter type at the property. Other tariff types include a flexible tariff which has different rates for Peak (the highest rate), Off-Peak (the lowest rate) and Shoulder (the middle rate) usage.
Fixed or Variable?
No, we’re not talking about your home-loan rate. Victorian electricity plans are also available with fixed or variable rates and you should consider this when comparing your electricity.
You may not know what type of plan you’re on, but if yours is a variable plan, that means that the price you pay for each unit of electricity can change with 30 days prior written notice.
Some retailers offer a fixed rate, which means your rates don’t change for a fixed length of time. So when it comes to the electricity rate, at least you can be sure it’s not going to suddenly change within the agreed period.
When you’re comparing your electricity prices, the Victorian Default Offer is a good benchmark. The VDO is an electricity price set by the Victorian Essential Services Commission, not electricity companies. It’s designed to give Victorian consumers access to a fair electricity deal without even having to engage in the retail market.
The VDO is set every year after the Commission assesses the cost retailers need to recover to provide electricity to Victorian consumers. It won’t necessarily be the lowest price available to you, but it is a fair one.
Most Victorian consumers can ask for a default offer from their retailers and they must make it available to customers who request it. While you don’t have to take the VDO offer, you can use it to compare your electricity rates against and know that you’re not being overcharged.
If it’s been a while since you compared your electricity rates, iSelect is here to help. It can be beneficial to compare electricity costs and choose a plan that suits you*. Switching providers is simple and painless, and your power supply won’t be disrupted during the changeover. Best of all, our service is free – so what have you got to lose?
Finding a new electricity plan from our range of plans and providers is quick and easy with iSelect. Simply enter your postcode to get started on your energy plan comparison here.*
Last update: 09/08/2022