Live in Victoria? Here’s how to save on your energy bill

Like many Victorians, you probably get a rude shock when you open your energy bill. No matter what steps you take to reduce your energy usage, it often ends up being way higher than you expected.

And it’s not hard to find the likely reason why.

While the cost of power has shot off the charts since 2008, only around 50% of your bill is made up of fixed network and distribution costs.

The rest of it is set by your supplier and depends on your plan.

And the difference between the cheapest and most expensive deals in the market can be huge. In fact, in 2019 the Australian Energy Market Commission found customers could have saved as much as $760 by switching between the two.

To make matters worse, even if you found yourself a great deal – there’s a very good chance you’re still being overcharged if you signed up more than a year ago.

Why you’re probably paying too much

There’s a healthy amount of players in the Victoria energy market, with lots of companies competing for your business.

And what’s the best way to attract new customers? By having lower energy prices than your rivals.

Because your energy will be the same whether it’s supplied by company A, company B … X, Y, or Z. The only difference is how much you’re charged for it.

So if you don’t regularly check out what the competition is offering, you’re likely losing out. And your current supplier? They’re probably laughing all the way to the bank.

But that’s only half the story.

Energy providers change their products and pricing all the time. And those discounts, incentives and eye-catching prices they use to lure customers in are often time-limited deals.

They are known as ‘market offers’ and typically run for between 12 to 24 months. After that, your provider can automatically switch you to the Victorian Default Offer (VDO).

The VDO is set by the Victorian government and varies depending on which distribution network you’re on. And while it was brought in to protect you from unfair power prices, it’s not as competitive as comparable market offers.

Essentially, it’s the absolute maximum your energy provider can legally get away with charging you.

Ouch.

Compare and save

To see how much you could save, let’s assume you’re with one of the ‘big three’ electricity retailers – AGL, EnergyAustralia and Origin Energy – and you’ve been moved onto the VDO.

Even simply switching onto their cheapest market offer could save you nearly $200.

For example, if you are on the Citipower network, you’ll pay approximately $1,420 for annual usage of 4,000Wh.

Switch to:

• AGL’s Essential plan and you’ll pay $1,246 or 12% less than the VDO
• EnergyAustralia’s Total Plan Home or Origin Energy’s Max Saver and it costs $1,263 or 11% less than the VDO

That gives you an extra $157 to $174 in your pocket – and that’s even without looking at all your options! And it’s often the lesser-known companies that have the most competitive deals.

The moral of this story?

Regularly compare your bills, so you don’t pay more than you should for your energy.

Ready to save on your energy bill? It only takes 30 minutes for you to switch onto a better deal. Apply Now to get started.