While we all have the greatest intentions to be on top of our life admin, it isn’t the most enjoyable task.
In most cases, life gets in the way and it can become all too hard. With our energy services being one of the unavoidable bills, we need to be more proactive and on top of it.
To understand and find the best energy options for you, we bring you relevant news and information on electricity and gas in Victoria.
Ready to compare electricity providers in Victoria? Talk to our partner company iSelect today on 13 19 20.
Why is the energy pricing in Victoria so high?
To put it simply, we have to look at two things:
– What makes up an energy bill
– How the power line and pole upgrades contribute to high bills
Here's a breakdown of an energy bill:
An energy bill is primarily made up of three components, according to Australian Energy Market Commission:
– The wholesale & retail costs (44%*)
– The cost of the power lines and poles (49%*)
– The cost of environmental policies (6%*)
Based on the 2016 Victorian figures as per Australian Energy Market Commission Report*
Why are the cost of power lines and poles generally so high?
If we revert back to approximately 2009, there was a $45 billion dollar project introduced to upgrade the nation’s electricity network. The electricity market was deemed to soar and it was advised that the country would be at threat of national blackouts without the upgrade. The spend was approved by the Australian Energy Regulator (AER) and this cost is subsequently charged back to you through your distributor. These upgrades occurs every five years where the AER gives the owners of the network the okay to upgrade and then that cost is passed onto you. There is speculation that the upgrade was more expensive than necessary but overall, this is one of the major reasons why energy bills have risen since 2009.
How to compare energy in Victoria?
Review your current energy plan
In most cases, you can log into your energy providers member portal online or call your distributor to check what you are paying, they will also be able to tell you if you are getting any discounts. All this information should also be shown on your latest bill.
Take steps to reduce your energy consumption in your household
– Switch off appliances when you aren't using them
– Try to avoid using things like the clothes dryer
– Change your light bulbs to energy efficient bulbs
– Check your appliances aren't faulty and/or using more energy than necessary
Check your discounts
– Have your discounts expired?
– Are you eligible for new discounts?
– Could a new provider beat your current discount?
What is the cheapest electricity company Victoria?
Sometimes it's not about the initial dollar figure. Make sure your provider fits your lifestyle. In some cases it can be more cost-effective to have your electricity provider with one company and your gas with another. Make sure you take into account any additional fees you may incur if you decide to split these up e.g. connection and/or disconnection fees.
Get on top of your life admin and find a plan & provider that suits you and your budget. Review and Compare Now with our partner iSelect, simply enter your postcode and get started.
Disclaimer Infochoice or iSelect do not compare all products in the market. Not all products are available at all times. Any advice provided in this content is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. Source: aemc.gov.au/Markets-Reviews-Advice/2016-Residential-Electricity-Price-Trends/Final/AEMC-Documents/2016-Electricity-Price-Trends-Report*, tenplay.com.au/channel-ten/the-project/extra/season-9/sick-of-getting-screwed, smh.com.au/business/sunday-explainer-why-is-electricity-so-expensive-20150925-gjvdrj.html