Reduce your energy bills

Things to consider

• How to read your bill

  Know how much you’re spending and why. This will allow you to determine whether you are with the right retailer and on the right plan for your needs. You’ll see two types of charges on your electricity bills:

  Supply charge
  This is a fixed, daily rate and includes the cost to operate, maintain and manage the network of poles, wires, and smart meters that deliver electricity to your home. Our supply charges are fully regulated by the Australian Energy Regulator and set annually. On average they account for less than 30 per cent of your total electricity costs.

  Variable charges
  These are based on the amount of electricity you consume in your home. They can change based on the season, whether or not you have solar, and how energy efficient your appliances are. Variable charges are set by your retailer and based on the type of energy plan you are on as well as when and how you use electricity. This is where your actions can have the most impact on reducing your bill.

• Choosing the right tariff

  You will see a reference to different types of tariffs on your electricity bill. A tariff is the cost for each unit of energy you use measured in kilowatts (kw). Most households are on a single (or flat) rate or time-of-use tariff for their variable charges.

  The peak pricing periods are generally between 3pm and 9pm daily. Lower off-peak pricing has traditionally applied to overnight use, but from July 2021 a new time-of-use tariff offers lower prices during the day as well. By using power in these new off-peak times, you’ll help to make the most of the growing supply of renewable energy available across the network.

  When discussing your energy plan with your retailer, you have a choice about which type of tariff or pricing structure will suit your home and lifestyle. These include:

  • Single rate tariffs: A good option for families that need an everyday low rate.
  • Time-of-use tariff: These offer cheaper rates if you can use electricity at specific times – like running your washing machine or dishwasher in off-peak periods – or if you have a rooftop solar system or electric vehicle charger. Different time-of-use options are available, depending on the appliances you use and when you use them.

  • Controlled load tariffs: These are designed for appliances that run overnight or in off-peak times, like water heaters.
  • Demand tariffs: These are charged based on your maximum power usage during a specific period, rather than your total usage over time.

  When considering tariffs, remember to look at your energy retailer’s Basic Plan Information Document for all the terms and conditions.

  To find out more about which tariff best suits you, visit our Affordability, Pricing and Charges page.

• Are you paying the right amount?

  As a Victorian resident, you can ask an energy retailer for what’s known as a Victorian Default Offer. This is a maximum flat rate set by the Essential Services Commission as a fair electricity deal for those unable or unwilling to engage with the retail energy market.

  The default offer will not necessarily be the lowest price available – but you can use it to compare against energy plans offered by energy retailers.

  Remember, it’s good to shop around to make sure you’re getting the best offer. The Victorian Government Energy Compare website uses information you provide about your household and energy bills to help you find the best energy provider or plan.

• What to consider when choosing a plan

  When comparing providers and plans, there are a range of important factors to consider, including:

  • the length of the contract period
  • any fees the retailer may charge
  • discounts or special deals the retailer may offer
  • the best tariff to suit your electricity use
  • if you prefer electricity generated by renewable energy sources
  • if you have a rooftop solar system and want to export electricity to the network.