Victoria Energy Prices

Victoria's benchmark: the Victorian Default Offer (VDO)

Victoria has its own version of the reference price called the Victorian Default Offer, set independently by the Essential Services Commission (ESC) — not by retailers. The VDO is designed to provide simple, trusted, and reasonably priced electricity for Victorians who are unable or unwilling to actively shop the market. It acts as a reference price that retailers must use to advertise the discounts on their market offers, helping customers identify better value. Essential Services Commission

The current VDO for a typical Melbourne household using 4,000 kWh/year on the Citipower network sits at $1,546/year. Average electricity rates across Victoria are approximately 26.8c/kWh, with an average daily supply charge of $1.02, and average annual bills around $1,380 — making Victoria one of the cheaper states in Australia. Money.com.auEnergyPlans

Who are the cheapest right now?

Some of the cheapest electricity rates in Victoria are currently offered by retailers with usage rates of around 23–28 cents per kWh and supply charges between 100–125 cents per day. Other competitively priced plans come from Lumo Energy (Plus plan), Tango Energy (Bonus Booster), and AGL (Smart Saver). Money.com.au

On the customer satisfaction front, Alinta Energy has been rated the best electricity provider in Victoria for 2026, with Momentum Energy taking the top spot for gas. Canstar Blue

The saving on offer is significant. On the Citipower network, the lowest market offer available is currently around $1,215/year — a saving of over $331 compared to the VDO. And in each of Victoria's five electricity networks, households on a flat rate tariff can currently pay 25% less than the VDO price by comparing retailers and switching to a cheaper plan. Money.com.auWATTever

Victoria has five networks — yours matters

Victoria has five electricity distribution networks: AusNet Services (Eastern Victoria), CitiPower (Melbourne CBD and inner suburbs), Jemena (North West Melbourne), Powercor (Western Victoria), and United Energy (South Eastern Melbourne and Mornington Peninsula). The VDO price and available market offers differ slightly between each network, so always enter your postcode when comparing to see plans specific to your area. WATTever

Victoria's government comparison tool: Victorian Energy Compare

Unlike NSW and QLD where the federal government's Energy Made Easy is the go-to, Victoria has its own state-run tool: compare.energy.vic.gov.au. This is the Victorian Government's free, independent energy price comparison tool — the ESC itself recommends it as the best way to find the right electricity offer for you. It covers every retailer and plan available in your distribution zone. Essential Services Commission

Good news coming from July 2026

The ESC's draft decision for the 2026–27 VDO proposes a reduction across all five distribution zones — on average, domestic customers would save around $46 a year (3%), with the final decision due in May 2026. So prices look set to nudge down from July, which is worth keeping in mind if your current plan is up for review. Essential Services Commission

How to compare — step by step

1. Go to Victorian Energy Compare (compare.energy.vic.gov.au). Enter your postcode and current usage from your bill. This is the state government's independent tool and covers every plan legally.
2. Know your network. It'll be on your bill — CitiPower, Jemena, AusNet, Powercor, or United Energy. Plans are priced differently between them.
3. Compare by estimated annual cost, not just the usage rate. Supply charges and any conditional discounts all feed into what you actually pay.
4. Watch the VDO percentage. Every plan is legally required to show how it compares to the VDO benchmark. The further below the VDO a market offer sits, the more competitive it is — this gives you a straightforward way to compare plans without needing to understand every pricing component. Zembl
5. Check conditional vs guaranteed discounts. Pay-on-time discounts vanish if you miss a payment. Check the unconditional rate as your baseline.
6. Read the Energy Fact Sheet. This is Victoria's equivalent of the BPID — it contains all the plan terms, exit fees, and rate details. Find it on Victorian Energy Compare for any plan you're considering.
7. Gas and electricity: compare separately. Bundling electricity and gas with one provider doesn't guarantee a lower rate — comparing plans separately and choosing different providers often works out cheaper. Canstar Blue
8. Review annually. Over time, market offer rates charged to existing customers creep up. Retailers are required to advise you if a cheaper plan is available, but not enough people are acting on this — if you don't ask, you don't get the savings. WATTever

Rebates worth checking for Victorians

The Medical Cooling Concession offers 17.5% off usage and service charges between November 1 and April 30 for eligible households with a pre-approved medical condition, requiring a Pensioner Concession, Health Care, or Veterans' Affairs Gold card. The Non-Mains Life Support Concession provides $389/year for eligible electricity customers. Apply through your retailer or the Victorian Concessions portal. Canstar

The bottom line: go to compare.energy.vic.gov.au, enter your postcode and your actual kWh usage from your last bill, sort by annual cost, and check the top few options against what you're currently paying. With 25% savings potentially on the table, five minutes of comparing could be worth several hundred dollars.