Cheapest energy provider in Victoria: how to compare plans and cut your bill

Searching for the cheapest energy provider in Victoria is understandable, energy prices can move quickly and the best offer for one household or business can be a poor fit for another. In Victoria, what you pay depends on your distribution zone, your meter type, your tariff (flat or time of use), and how much energy you use over the year.

This guide explains how to compare Victorian electricity and gas offers properly, what “cheapest” really means in practice, and the most common ways customers overpay. If you want someone to do the comparison for you, Zembl can review your current bill, benchmark it against offers available through our retailer panel, and handle the switching paperwork.

What “cheapest” means in Victoria

There is no single cheapest retailer for everyone in Victoria. The cheapest plan is usually the one with the lowest estimated annual cost for your specific:

address and distribution area (for example CitiPower, Powercor, AusNet Services, United Energy, Jemena)
meter and tariff type (flat rate vs time of use, controlled load where applicable)
consumption profile (daytime vs evening usage, seasonal patterns)
gas usage (if comparing dual fuel)

That is why reputable comparisons use your real usage from the last 12 months rather than headline discounts.

Victorian energy pricing basics you should know

Victorian Default Offer (VDO)

Victoria has a regulated benchmark price called the Victorian Default Offer (VDO). It applies to electricity standing offers and is set each year by the Essential Services Commission (ESC). Many market offers are priced as a percentage below the VDO, but the cheapest deal still depends on your usage and tariff mix.

Supply charge vs usage charge

Most plans include:

Daily supply charge: a fixed amount per day, regardless of how much electricity you use
Usage charge: cents per kWh, sometimes with different rates by time period

A plan with a low usage rate but high supply charge can be expensive for low usage sites. The reverse is also true for high usage sites.

Time of use (TOU) pricing

If you have a smart meter, you may be on a time of use tariff. That means peak, shoulder and off peak rates apply at different times. For some customers, TOU is cheaper, for others it increases bills if most usage falls in peak windows. When comparing, always check whether the offer is flat or TOU and whether it matches your load profile.

How to compare energy providers in Victoria, step by step

1) Start with your latest bill (or 12 months of bills)

To compare accurately, you need:

your NMI (electricity) and MIRN (gas) if applicable
your tariff type (flat, TOU, controlled load)
your distribution area and meter read type
your total kWh usage over 12 months (and MJ for gas)

If you are a business with multiple sites, gather bills for each NMI. Multisite pricing can differ significantly by location and tariff.

2) Compare estimated annual cost, not discounts

Discounts can be applied to usage charges only, supply charges only, or the whole bill. Some discounts depend on paying on time or direct debit. The best practice is to compare on estimated annual cost based on your usage, then check conditions.

3) Check contract features that affect the real price

Benefit period: some offers revert after 12 months
Price change clauses: market offers can change, even mid contract
Exit fees: less common than they used to be, but still possible
Billing and payment fees: paper bill fees can add up

4) Consider solar feed in tariffs (if you have solar)

If you have solar, the cheapest overall plan may not be the one with the highest feed in tariff. A strong FIT can help, but usage rates, supply charge and TOU periods usually matter more. A proper comparison models both import and export.

5) Use the Victorian Government comparison tool as a baseline

The Victorian Government provides an independent comparison website, Victorian Energy Compare. It is a useful baseline for households and small businesses to understand what is available in the market and how offers are structured.

Common reasons Victorians overpay for energy

Staying on a standing offer longer than needed
Not re shopping each year, retailers often reserve sharper offers for new or renewing customers
Being on the wrong tariff for your meter and usage pattern
Not checking the supply charge, especially for low usage households and small sites
Not reviewing network tariff suitability for businesses with changing load profiles

Cheapest electricity in Victoria for businesses: what is different

Business energy pricing in Victoria can be more complex than household pricing. Beyond the retail rate, your bill is heavily influenced by network tariffs and when your site draws demand. For example, shifting load out of peak periods can reduce costs on some tariffs.

Zembl supports:

SME electricity and gas comparisons
commercial and industrial procurement, including structured tenders
multisite portfolio reviews
tariff and bill validation to find cost drivers

How Zembl helps you find a competitive deal in Victoria

Instead of guessing which retailer is cheapest, Zembl compares your current rates and usage against offers available through our retailer panel. If there is a better fit, we explain the trade offs clearly and handle the switching paperwork.

Depending on your situation:

Households and small businesses: we can often complete an initial comparison quickly once we have a recent bill
Larger businesses and multisite customers: we can support a more detailed procurement process, including retailer engagement and contract structuring

Related guides

Get a free energy review

If you want to find a cheaper electricity or gas deal in Victoria without spending hours comparing plans, Zembl can help. Submit an enquiry and upload a recent bill, and we will come back with options that fit your usage and site details.