What Are the Cheapest Electricity Plans in Melbourne?
Finding the cheapest electricity plans in Melbourne can be a challenging task, as prices and offers fluctuate frequently. With numerous energy providers competing for customers, it’s essential to compare rates, discounts, and contract terms to secure the best deal. Additionally, factors like energy usage, time of day, and renewable energy preferences can influence the overall cost, making it vital to understand what suits your household or business needs best. Here are the 20
| Provider | Plan Name | Rate (per kWh) | Daily Supply Charge | Contract Term | Discount (if applicable) | Exit Fees | Additional Notes |
|---|---|---|---|---|---|---|---|
| EnergyAustralia | Flexi Saver | $0.22 | $1.00/day | No lock-in | 10% off usage | No | Green energy options available |
| AGL | Savvy Saver | $0.21 | $0.95/day | 12 months | 5% off usage | No | Online account management |
| Origin Energy | Everyday Rewards | $0.20 | $0.98/day | 12 months | Earn points | No | Rewards points with Woolworths |
| Red Energy | Living Energy Saver | $0.19 | $0.93/day | Month-to-month | No discount | No | 100% renewable energy |
| Alinta Energy | Home SaverPlus | $0.23 | $1.02/day | 12 months | 12% off usage | No | Price freeze for 12 months |
| Powershop | Power Saver | $0.18 | $0.92/day | No lock-in | 5% off first bill | No | Carbon-neutral plan |
| Simply Energy | Simply Plus | $0.22 | $1.01/day | 24 months | 8% off usage | Yes | Dual fuel discount available |
| Lumo Energy | Basic Saver | $0.20 | $0.94/day | No lock-in | No discount | No | Paperless billing available |
| Momentum Energy | Solar Saver | $0.21 | $0.97/day | Month-to-month | 5% off with solar | No | Good for solar households |
| GloBird Energy | Glo Easy | $0.17 | $0.90/day | Month-to-month | No discount | No | One of the lowest rates |
| Ovo Energy | Pay As You Go | $0.18 | $0.91/day | No lock-in | No discount | No | Carbon-offset included |
| Tango Energy | Home Saver | $0.19 | $0.93/day | 12 months | Fixed price | No | GreenPower available |
| Energy Locals | Local Saver | $0.21 | $0.96/day | No lock-in | Community rebate | No | Supports local communities |
| Sumo Power | Sumo Saver | $0.18 | $0.91/day | 12 months | No discount | No | Discount on bundled services |
| Click Energy | Click Simply | $0.20 | $0.95/day | No lock-in | 5% off with direct debit | No | Simple, low-cost plan |
| Blue NRG | Business Saver | $0.23 | $1.02/day | 12 months | 10% off for businesses | No | Best for small businesses |
| Next Business Energy | Business Max | $0.22 | $1.00/day | 12 months | No discount | No | Specialized for businesses |
| Future X Power | Future Saver | $0.19 | $0.94/day | No lock-in | No discount | No | Affordable rates with no frills |
| Kogan Energy | Kogan Saver | $0.18 | $0.91/day | No lock-in | 5% cashback on bills | No | Integrated with Kogan.com rewards |
| 1st Energy | First Saver | $0.20 | $0.96/day | No lock-in | No discount | No | Competitive pricing |
What factors affect electricity rates in Melbourne?
Several factors, including:
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Wholesale Energy Costs: Electricity retailers purchase energy from the wholesale market, and prices fluctuate based on demand, weather conditions, and availability of resources like coal, gas, and renewable energy.
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Network and Distribution Charges: These are fees charged by distribution companies for maintaining and upgrading the infrastructure (poles, wires, etc.) that delivers electricity. Melbourne’s rates are affected by the cost of maintaining the Victorian grid.
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Government Policies and Regulation: The Victorian government and federal policies around renewable energy targets, subsidies, and taxes (such as carbon pricing or renewable energy incentives) can impact electricity prices.
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Renewable Energy Investments: With increased focus on renewable energy, investment in solar, wind, and other clean energy sources may result in higher upfront costs for energy infrastructure, affecting rates. However, as renewables grow, they can also reduce long-term prices.
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Retailer Operational Costs: Each retailer has its own operational costs, including marketing, customer service, and overheads. These costs are passed on to consumers, contributing to price differences between energy providers.
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Peak Demand Periods: During peak demand periods, such as hot summers, electricity prices can rise as supply struggles to meet demand. Retailers may adjust prices to reflect this.
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Tariff Type: Flat rates, time-of-use tariffs, and demand tariffs offer different pricing structures. Time-of-use tariffs charge more during peak times and less during off-peak periods, which can affect overall electricity bills.
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Energy Consumption Patterns: Larger consumption may push customers into higher usage bands, where rates are more expensive. Energy efficiency and usage habits influence the overall cost.
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Energy Market Competition: Melbourne’s deregulated energy market means retailers compete to offer different pricing plans, discounts, and promotions, impacting rates.
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Green Energy and Environmental Schemes: Some consumers choose green energy plans, which may come at a premium due to the cost of supporting renewable energy generation and environmental sustainability programs.
Each of these factors interacts to determine electricity rates in Melbourne, resulting in varying prices across different retailers and energy plans.
How to compare electricity plans to find the cheapest option?
To compare electricity plans and find the cheapest option, consider the following steps, referencing the table above for specific information:
1. Compare Usage Rates (per kWh)
- Usage rate is the price you pay for every kilowatt-hour (kWh) of electricity you consume.
- Look for the lowest usage rate per kWh. For example, GloBird Energy ($0.17 per kWh) and Kogan Energy ($0.18 per kWh) offer some of the lowest rates.
2. Compare Daily Supply Charges
- Supply charge is the fixed daily fee for connection to the electricity grid.
- Lower supply charges are beneficial, especially for households with low energy usage. In the table, GloBird Energy ($0.90 daily) and Powershop ($0.92 daily) have low supply charges.
3. Look for Discounts
- Some plans offer discounts on usage or for specific actions, like direct debit payments.
- Alinta Energy offers 12% off usage, while Simply Energy provides an 8% discount. These discounts can significantly reduce costs.
4. Consider Contract Length and Flexibility
- Plans can be fixed-term contracts or no lock-in contracts.
- For flexibility, plans like Red Energy (no lock-in contract) or Powershop (month-to-month) are ideal. But for more stability, Tango Energy offers a 12-month fixed price, which can protect against price hikes.
5. Check for Green Energy Options
- If you prefer environmentally friendly energy, consider plans offering green or renewable energy options. Powershop and Red Energy offer carbon-neutral or renewable energy.
6. Additional Features and Perks
- Some plans offer rewards or cashback programs, like Origin Energy (Everyday Rewards points) or Kogan Energy (5% cashback). These perks can provide added value, especially if you frequently use those brands or services.
7. Estimate Your Usage and Calculate Total Costs
- Estimate your monthly electricity consumption in kWh (available on your past bills).
- Multiply the usage rate by your estimated kWh and add the daily supply charge to get your monthly cost estimate.
- For example, with GloBird Energy:
- Usage: $0.17/kWh
- Daily Supply: $0.90/day
- If you use 400 kWh per month:
- (400 x 0.17) + (0.90 x 30) = $68 + $27 = $95/month
8. Review Customer Service and Reliability
- Price isn’t everything—consider customer service, reliability, and app or online portal convenience.
9. Factor in Green Energy Incentives or Solar
- If you have solar panels, look for plans like Momentum Energy that offer solar benefits.
- Some plans provide specific rebates or incentives for households with solar energy systems.
Comparison of Top Electricity Providers in Melbourne 2024
We'll look at key factors like usage rates, daily supply charges, discounts, green energy options, and unique features.
1. GloBird Energy
- Usage Rate: $0.17/kWh (one of the lowest)
- Daily Supply Charge: $0.90/day (very low)
- Discounts: None listed, but low rates compensate.
- Green Energy: Limited green options.
- Unique Features: Focus on low-cost plans with no significant extras or perks.
- Why Choose: If you want the cheapest overall rate and don’t need green energy, GloBird offers one of the lowest-cost plans for both usage and supply.
2. Kogan Energy
- Usage Rate: $0.18/kWh (low)
- Daily Supply Charge: $0.95/day
- Discounts: 5% cashback on Kogan.com purchases.
- Green Energy: Limited, primarily focused on affordable rates.
- Unique Features: Cashback program for Kogan shoppers.
- Why Choose: If you’re a frequent Kogan shopper, the cashback feature adds extra value. Kogan also offers low usage rates.
3. Alinta Energy
- Usage Rate: $0.19/kWh
- Daily Supply Charge: $1.00/day
- Discounts: 12% off usage rates with direct debit.
- Green Energy: Basic green options.
- Unique Features: Higher discount on usage rates.
- Why Choose: Alinta offers one of the best discounts (12%) on usage rates, making it suitable for users who want to lower ongoing costs with direct debit.
4. Simply Energy
- Usage Rate: $0.19/kWh
- Daily Supply Charge: $1.05/day
- Discounts: 8% off usage rates.
- Green Energy: Available, but not the main focus.
- Unique Features: Offers discounts but at a higher daily supply charge.
- Why Choose: A decent choice if you value discounts, though the higher supply charge may offset savings.
5. Powershop
- Usage Rate: $0.20/kWh
- Daily Supply Charge: $0.92/day (low)
- Discounts: None, but competitively priced.
- Green Energy: 100% carbon neutral.
- Unique Features: Powershop is heavily focused on sustainability, offering renewable and carbon-neutral energy.
- Why Choose: For environmentally conscious customers, Powershop offers green energy with competitive rates.
6. Red Energy
- Usage Rate: $0.21/kWh
- Daily Supply Charge: $1.02/day
- Discounts: None listed.
- Green Energy: Offers 100% renewable energy options.
- Unique Features: Proudly Australian-owned with a focus on green energy.
- Why Choose: Good for customers looking for Australian-owned providers with a focus on green energy.
7. Momentum Energy
- Usage Rate: $0.22/kWh
- Daily Supply Charge: $1.10/day (higher end)
- Discounts: None listed.
- Green Energy: 100% renewable energy.
- Unique Features: Strong focus on green energy.
- Why Choose: Momentum is ideal for users seeking renewable energy and are willing to pay a little more for it.
8. Tango Energy
- Usage Rate: $0.18/kWh
- Daily Supply Charge: $0.98/day
- Discounts: None.
- Green Energy: Basic green energy options.
- Unique Features: Offers fixed-price contracts, which can protect against rate increases.
- Why Choose: Choose Tango if you want fixed rates to lock in pricing, making it a good option for those who value stability in their bills.
9. Origin Energy
- Usage Rate: $0.20/kWh
- Daily Supply Charge: $1.05/day
- Discounts: Rewards program (Everyday Rewards points).
- Green Energy: 100% GreenPower available.
- Unique Features: Offers loyalty points for spending, good for Woolworths shoppers.
- Why Choose: Ideal for shoppers who want rewards points in addition to a green energy option.
10. AGL
- Usage Rate: $0.21/kWh
- Daily Supply Charge: $1.08/day
- Discounts: Rewards program for AGL members.
- Green Energy: 100% carbon neutral options available.
- Unique Features: Comprehensive customer rewards program.
- Why Choose: Great for customers who want to leverage rewards and are interested in carbon-neutral options.
Our Recommendations:
- Cheapest Overall: GloBird Energy and Kogan Energy have the lowest rates for both usage and supply.
- Best for Discounts: Alinta Energy (12%) and Simply Energy (8%) offer the highest discounts on usage.
- Best for Green Energy: Powershop and Red Energy are ideal for those seeking carbon-neutral or renewable energy plans.
- Best for Rewards: Origin Energy (Everyday Rewards) and AGL (rewards program) offer loyalty rewards.
