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Why are prices going up?
The energy market is under a lot of pressure, with reduced supply due to power plant outages, high winter demand and other factors. Because of this, the wholesale energy rate has increased. This means electricity and gas have become more expensive. For electricity, this affects smaller companies more as they are not able to generate their own electricity and must buy it on the wholesale market.
What does my energy company need to do?
Your energy company must tell you when its prices are going up, and it must give you at least five days' notice before a price or benefit changes. There are set times when energy companies can increase their prices and this is normally only once a year.
When it tells you of a price increase, it must include a 'best offer' message telling you if a cheaper plan is available. Your energy retailer must tell you on your bill if you are on their best offer, at least once every three months for electricity bills and once every four months for gas bills. Visit our Price increase or change page for more information.
If you talk to your company about its rates, ask about the Victorian Default Offer as this could be less expensive than their best market offer.
How can I make sure I am on the best deal possible?
The Victorian Government price comparison website, Victorian Energy Compare, is always a good place to go if you’re looking for the best value energy plan.
As of 1 July 2022, every Victorian household can apply for a $250 Power Saving Bonus from the Victorian Government just for using the site.
What is the Victorian Default Offer?
The Victorian Default Offer (or VDO) is an electricity price introduced by the Victorian Government to make the energy market simpler and more affordable. Each year the price is set by the independent regulator, the Essential Services Commission, and not by energy companies. Every electricity company in Victoria must offer the Victorian Default Offer. Visit the Victorian Government’s website for more information on the VDO.
The Victorian Default Offer varies by distributor, which is the company that owns and manages the poles and wires. You don't get to choose your distributor, yours is determined by where you live. Refer to this Victorian Government website to see what your distributor is.
Is the Victorian Default Offer the lowest rate?
While the Victorian Default Offer is not necessarily the most affordable plan, switching to the Victorian Default Offer for electricity could save you money. The current residential Victorian Default Offer rates are below. We encourage Victorians to check Victorian Energy Compare to see what the best offer is.
When working out what is cheapest for you, remember that there are two electricity charges - a daily supply change and a usage charge. If you don’t use much electricity, then an offer with a lower daily supply charge may work out cheaper.
| Distribution zone | Supply charge ($ per day) | Usage charge structure | Usage charge ($ per kWh) | Controlled load ($ per kWh) |
|---|---|---|---|---|
Distribution zone AusNet Services |
Supply charge ($ per day) $1.2994 |
Usage charge structure Block 1 (up to 1020kWh used in a quarterly period) |
Usage charge ($ per kWh) $0.2893 |
Controlled load ($ per kWh) $0.1962 |
Distribution zone |
Supply charge ($ per day) |
Usage charge structure Block 2 (balance of usage in a quarterly period) |
Usage charge ($ per kWh) $0.3070 |
Controlled load ($ per kWh) $0.1962 |
Distribution zone CitiPower |
Supply charge ($ per day) $1.1623 |
Usage charge structure Anytime |
Usage charge ($ per kWh) $0.2170 |
Controlled load ($ per kWh) $0.1566 |
Distribution zone Jemena |
Supply charge ($ per day) $1.1577 |
Usage charge structure Anytime |
Usage charge ($ per kWh) $0.2322 |
Controlled load ($ per kWh) $0.1761 |
Distribution zone Powercor |
Supply charge ($ per day) $1.3102 |
Usage charge structure Anytime |
Usage charge ($ per kWh) $0.2333 |
Controlled load ($ per kWh) $0.1656 |
Distribution zone United Energy |
Supply charge ($ per day) $1.0753 |
Usage charge structure Anytime |
Usage charge ($ per kWh) $0.2327 |
Controlled load ($ per kWh) $0.1631 |
Go to this page to access small business VDO rates - they can be found below the residential rates.
Visit the Essential Services Commission website for more information.
What if I’m having difficulty making payments?
Your energy company must help you if you are in financial difficulty, and provide support under the Payment Difficulty Framework. Visit our Trouble paying our bill page for more information. This support includes making sure you’ve received all government concessions and grants you are entitled to. This could include a Utility Relief Grant of up to $650 for either gas or electricity, or up to $1,300 if you only have electricity. Read our Concessions and grants fact sheet for more information.
Remember that if you are behind in your electricity and gas bills and change companies, your old company does not need to provide you the support available to its customers, and may try to collect any debts.
If you aren’t happy with what your electricity or gas company tells you, contact our free and independent service and we can explain how we can help you. Have a look at our Contact us page for the different ways you can get in touch with us.