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Best value energy providers in Victoria

Are you a chronic sufferer of energy bill shock? Luckily, if you live in Victoria, there is a cure. Unlike some Australian states, Victoria has a deregulated energy market which means you have the freedom to switch energy providers whenever you like. So if your current energy plan is leaving a little more to be desired, shop around for a better deal? Mozo can help you out with our comparison tool above. 

Show transcript

What should I look for in a good energy plan? 

Most energy providers in Victoria offer different kinds of energy plans for you to choose from. 
But whether you’re searching for an individual plan or a dual gas and electricity service, here are some of the features you should look for before signing up: 

No lock-in contracts and exit fees: If you opt for an energy plan without any lock-in contracts or exit fees, you’ll have the flexibility to leave or move onto another offer anytime you like - without having to pay fees. That way, if you feel unhappy with your current energy deal, you won’t feel stuck and can make the switch to a better plan whenever it suits.

Green power option: Looking to go environmentally friendly? You could sign up to a plan with a retailer that uses renewable energy. This will put your mind at ease that your energy usage will be offset by the renewable energy that’s been added to the grid on your behalf.

Bill smoothing: No one enjoys the bitter taste of bill shock after summer or winter when your gas and electricity bills tend to skyrocket, thanks to your generous use of the air-conditioner or heater during those seasons. For some Aussies who earn a fixed salary, finding that extra bit of cash to cover the more expensive energy bill isn't always easy. 

That’s when bill smoothing comes in handy. Many energy retailers in Victoria have plans with flexible payment options that allow you to spread the estimated annual cost of their service across equal monthly, fortnightly or weekly payments. This option to pay in regular installments could make it a lot easier for you to manage your household budget. Read our guide on bill smoothing to learn more about the ins and outs of how this feature works. 

How much does energy cost in Victoria?

The cost of your energy service will depend on where you live in Victoria and of course, how much energy your household consumes. Your energy bill can be broken down into two separate charges: 

Usage charge: Your provider will charge you for every unit of gas or electricity you use, so the less gas or electricity you use, the cheaper your bill will be. You can lower your bill in a number of ways, including switching to more energy-efficient appliances. For more ways to save on energy, check out our energy saving tips

Daily supply charge: Even if you don’t use any electricity, you’ll have to pay a daily supply charge, which is the fixed price per day for connecting your house to the electricity grid. 

The general rule of thumb is: 

  • Supply charge is more important for customers with low energy usage, since it generally makes up a bigger portion of their bill
  • Usage charge is more important for customers with high energy usage

To find out exactly how much energy your household consumes, you’ll need to check your energy bill. Most retailers will send a copy to you once every quarter, either via the post or via email. On your bill, you’ll see a range of information including: 

  • Your name, address and meter number 
  • The amount owed and the due date
  • The billing period - the time period you’re being charged for 
  • The meter readings used to calculate your energy usage over the billing period - this is measured in kilowatt hours (kWh) for electricity and megajoules (MJ) for gas
  • The amount your retailer is charge per kWh of electricity or per MJ of gas 
  • The fixed supply charge for the billing period 
  • Any other fees or charges that apply 

How can I reduce my energy bill? 

You can reduce the size of your energy bill in two ways. 

Firstly, of course, it’s about cutting back on the amount of energy you use. Small changes in your habits and lifestyle could help a lot in this department. 

Apps are a great way to help you stay on track, as they can monitor your energy usage, and even check the efficiency of an appliance you’re thinking of purchasing. 

Depending on the season you’re in, you could try actioning a number of different energy-saving tricks and tactics. Below are just some of those tactics to prepare you for summer or winter, so you’re ready to either beat the heat or brace the cold, without getting hit by bill shock at the end of each quarter. 

Summer: 

  • Close your windows and curtains during the day: That’s right! Just by closing your windows and curtains whenever the sun comes out, or installing ‘blackout curtains’ (that block out the sunlight), you could be preventing 30% of unwanted heat from entering your home. Then, at night, when the air cools down, you could open up all your windows to let in the breeze and ventilate.  
  • Trade in your aircon for cotton bedsheets: Mozo’s report found Aussies could be footing a collective bill of $2.5 billion thanks to bad aircon habits, with 3 in 10 admitting they’d rather keep the aircon on all night to sleep under a doona. But swapping out those thick bed covers for thinner cotton sheets could do wonders in making sure you aren’t tossing and turning in sweat through the night - and you’ll be able to dodge that spike in your energy bill too! 
  • Keep yourself cool: There are plenty of ways to keep your body cool throughout summer, without having to rely on aircon. Apply cold cloths to the back of your neck, wrists and chest. Or head down to the $2 shop to pick up a few spray bottles and fill them with icy water so you can spritz yourself whenever you need to. And if you’re really thinking outside the box, eating spicy foods could help you sweat more and cool down. 

Winter:  

  • Seal sneaky leaks in the walls, windows and the roof: Small cracks around the house, whether under the door or between the window pane and glass, could become a serious annoyance during winter, as any gust of wind could pass through those gaps and send a chill shiver down your spine. Luckily, draught stoppers could go a long way to keeping the cold outside and the heat indoors.
  • Upgrade your appliances to a better star rating: Check your big-ticket appliances, like your fridge, washing machine and heater, to see if any of them need an upgrade. That’s because appliances with a better star rating use less energy for the same output and could go a long way to reducing your energy bill.
  • Move to a fixed installment plan: Scared of being left with the bitter aftertaste of winter bill shock? A fixed installment or bill smoothing plan could help out - with this type of plan, you can choose to pay a fixed amount of your energy bill on a weekly, fortnightly or monthly basis, making your payments more consistent and a lot easier on your bank account. 

But no matter the weather in Victoria, one of the biggest ways you could save on your energy bill is to switch to a better value plan. If you’ve been with the same energy supplier for a while, it’s likely that your energy plan won’t be the most competitive in the market right now, so be sure to shop around and compare your current offer with other providers in your area to see where savings can be made on your deal. 



Other FAQs

Who is the best Victorian energy provider?

While there’s no such thing as the ‘best’ energy provider, you could find one that suits your household the best. To help you decide on an energy plan, you can head to our comparison tool above, or take a look at our energy reviews section, where you’ll be able to see how real customers rated their Victorian energy provider on a range of different aspects including price, customer service and green energy.

And if you’re interested in checking out which energy providers have won Aussies’ hearts, you can head over to the Mozo People’s Choice Awards 2019 for a full list of crowd favourites. 

What is the VDO? 

Introduced as part of the July 1 regulatory changes, the VDO or Victorian Default Offer aims to make electricity ‘fairer’ for all Victorians. From July 1, residents on ‘standing offers’ - usually basic plans at a more expensive price - will be rolled over to the VDO, so they aren’t left paying more than what they should. 

While anyone in Victoria can sign up to the VDO, that doesn’t necessarily mean it’s the best deal for you. So to make sure you’re on the right plan, it’s always worthwhile shopping around and checking out which other offers are available to Victorian households. You can use our comparison tool above to start comparing energy providers and plans today. 

Will my meter make a difference to the cost of my energy bill?

Yes, the meter that is installed at your house can determine the tariff you’re charged. From 2013 until 2016, Victoria actually had a government led initiative to replace the basic meter in every home in Melbourne and throughout the state with a smart meter.

Smart meters are digital meters that record your electricity usage every 30 minutes. This data is automatically sent to your electricity distributor which means you can say goodbye to estimated bills and manual meter readings.

If you have a smart meter, you now have the option of choosing between flat rates or a flexible pricing plan. With a flexible pricing plan, you are charged different tariffs depending on what time of the day you use power, which could save you a bundle on your electricity bill if you can manage to time your energy usage. You can have a read of our smart meter guide which has everything you need to know.

Will it cost me anything to switch my energy provider? 

If you’re on an open contract, you will not be charged to switch energy providers in Victoria. However, if you have signed up for a fixed term, you may be required to pay an early termination fee for ending the contract before the period ends.

If you are moving, most energy providers in Victoria will charge a connection fee to transfer your account to your new address. This cost is generally added to your first bill at your new home. 

Do I have to let my old retailer know that I’m switching? 

No - you usually won’t need to notify your old electricity provider about your switch, as your new retailer will do this for you on your behalf. 

Just keep in mind that your switch won’t take place as soon as you sign up with your new provider; rather, it’ll happen on your next meter read, which could be three months down the track, depending on your last meter read. If you’re looking to speed up the process, you will need to factor in a callout fee. 

If you are moving to a new house or property you will need to let your old provider that you will be disconnecting the service so that they are issue you a final bill for that property. You can then decide whether to sign up to a new plan with that provider or shop around for a better deal. 

How many retailers does Mozo compare? 

At the moment, we compare 15 retailers, including Origin Energy, Energy Locals and Powershop. If you find an energy deal among those retailers that you’re happy with, you can apply directly through Mozo. 

How can I apply for energy plans on Mozo? 

Worry not - it’s a no-fuss process. Once you’ve found the best deal for your household, you can begin your application process without even leaving the Mozo website. All you’ll need to do is complete a form, which includes filling out details like:  

  • The supply address
  • NMI - national meter identifier (this is the meter number and can be found on your energy bill) 
  • Direct debit details (bank name, BSB, account number)

How does Mozo make money? 

Mozo makes money by helping energy providers connect with customers, like you, who are looking for a great energy deal. Most importantly our service is totally free to use and it is the energy providers competing for your business that pay Mozo, not you!

Mozo shares a fee with our partner, CIMET, who helps provide this service. This fee is paid when you complete an application and switch energy providers using our service. Mozo may also earn revenue when energy providers purchase display advertising on our site or when we help them use all the great data we’ve collected.

Picture of Cooper Langby
Cooper Langby
Money writer

Cooper wrote across all aspects of personal finance at Mozo until his departure in February 2022. He has a double degree in Journalism and Communications & Media from the University of Wollongong.  His focus was to look for new ways to educate himself and our readers on the best ways to save money, and budget effectively.

*To calculate the potential savings figure Mozo identified the lowest plan provided by Mozo and highest cost plan in each energy distributor state region based on the average residential usage in that state. The costs data used across the state is current at 17 August 2020. Not all plans will be available via the Mozo energy comparison service. Your individual usage and location, along with which plan you are on and which plans are available on the Mozo site at any given time, will vary the savings you may be able to achieve using the Mozo energy comparison service.

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Energy Provider Reviews

Origin Energy Electricity
Overall 5/10
if you can afford it get solar!

our energy bill fluctuates so much its ridiculous ! We tried to change our bills to a more frequent time, but it doesn't matter either way, electricity costs so much, but why when we could have free energy, which is being held against humanity. Just saying!

Read full review

our energy bill fluctuates so much its ridiculous ! We tried to change our bills to a more frequent time, but it doesn't matter either way, electricity costs so much, but why when we could have free energy, which is being held against humanity. Just saying!

Price
1/10
Bill clarity
10/10
Customer service
10/10
Green Friendly
4/10
Less
Jasmine, Queensland, reviewed 16 days ago
Red Energy Electricity
Overall 9/10
100% australian

100% owned and operated in melbourne, ran by snowy hydro which assures the green rating

Read full review

100% owned and operated in melbourne, ran by snowy hydro which assures the green rating

Price
10/10
Bill clarity
7/10
Customer service
9/10
Green Friendly
7/10
Less
Beau, New South Wales, reviewed 16 days ago
AGL Electricity
Overall 7/10
Sceptical but appreciative of reliability

I've discovered that I don't know a lot about 'green energy' as such . It's not that I'm ignorant of carbon emissions and footprints.., it just seems more complex and standards seem to change all the time. I try to stay informed but there's a lot I don't understand, nor is anyone able to explain it in a way that makes sense. I've shopped around and tried various energy providers but I seem to always go back to the 'big guys', just like the banks, phone companies and internet providers.. the prices seem competitive.. and suits my budget, (if that is a thing anymore..) And I love a service that is reliable and doesn't succumb to interruptions (unless by act of god) I don't mind paying for the extra piece of mind for a reliable service...

Read full review

I've discovered that I don't know a lot about 'green energy' as such . It's not that I'm ignorant of carbon emissions and footprints.., it just seems more complex and standards seem to change all the time. I try to stay informed but there's a lot I don't understand, nor is anyone able to explain it in a way that makes sense. I've shopped around and tried various energy providers but I seem to always go back to the 'big guys', just like the banks, phone companies and internet providers.. the prices seem competitive.. and suits my budget, (if that is a thing anymore..) And I love a service that is reliable and doesn't succumb to interruptions (unless by act of god) I don't mind paying for the extra piece of mind for a reliable service...

Price
7/10
Bill clarity
7/10
Customer service
7/10
Green Friendly
6/10
Less
Zoe, Queensland, reviewed 16 days ago

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