The new year always brings new electricity pricing in Victoria. In 2021 Victorian electricity prices will drop. This is good news for energy shoppers after a tough year where lockdown meant larger energy bills for many Victorian households. Here’s what you’ll find if you’re on the hunt for a better deal.
Regulator lowers the Default Offer
Since 2020, Victoria’s Essential Services Commission (ESC) has set the maximum price for electricity offers. This is to safeguard consumers unable or unwilling to engage in the electricity market. Now the ESC has decided that from January 2021, Victorian electricity prices will drop on the Default Offer (VDO). Residential customers will see a fall of around 10 per cent and small businesses around 14 per cent. The drop is due to forecast decreases in wholesale electricity and network costs. So customers on the most expensive plans can expect a better deal this year. But what’s the outlook for market offers – where retailers already offer discounted electricity plans well below the default cost?
New Year new deals
Simply Energy dropped some well-priced deals on January 1, while retailers have jumped back into the market in late January to sharpen their offers, most notably Momentum. On February 1st, Energy Locals and Kogan clipped their rates, while EnergyAustralia’s Total plan was also trimmed. GloBird Energy dropped their prices on February 3rd to find them near the top in most Victorian networks. But not every retailer has cut pricing. Throughout 2020 Elysian Energy had been a strong discounter, however the small retailer has so far left rates unchanged since July.
Here’s how the cheapest energy deals shake out for the CitiPower network. Go here for links to Victoria’s other networks including AusNet Services. Jemena, Powercor and United Energy.
Cheapest Anytime electricity rates in Melbourne by retailer (CitiPower network)
Not in the CitiPower electricity network? Click here to view rates for all electricity networks in Victoria.
More competition on the way
Victoria was the first state to deregulate electricity retailing. Recently, the level of competition has stalled. After an early rush of entrants giving households a choice of different energy suppliers, there have been fewer new players setting up shop in Victoria. While you’ll find up to twenty four retailers competing in Victoria, north of the border in NSW, there are now thirty seven retailers. On February 1st, the three cheapest retailers in NSW – ReAmped, Mojo and Nectr – didn’t operate in Victoria. One reason is Victoria’s separate energy retail regulations. New players typically choose to get started in AER States (NSW, SE QLD and SA) which operate under a single set of rules. This means new Retailers can easily scale and expand into new markets, with the ambition of eventually investing in a launch into Victoria as they scale up. Now, a couple of new low-cost, independent retailers are close to launching offers in Victoria, which should further heat up the level of competition.
Which deal is best for me?
To find the best deal for your homes unique energy use, you’ll want to see the cheapest combination of rates, daily charges, controlled load rates and feed-in tariffs (if you have solar). We make it easy to get it right when you compare with WATTever’s comprehensive electricity comparison. You’ll see a personalised cost ranking of all publicly listed electricity plans, based on your energy use to help you make serious savings. We include all retailers, tariff types, discounts, solar feed-in tariffs, input for concessions and more. For extra tips check out our essential guide to comparing electricity properly.