How to get the best electricity tariff

Home Owner

Key points

  • Suitability: Electricity tariffs come with various components. It’s crucial to find one that best fits your lifestyle.

  • Choice: Numerous tariffs are available in all localities. The Victorian government websites can help you find the best one for you.

  • Expiry: Most tariffs are on contracts that expire annually. It’s important to review them every 1–2 years. If you don’t re-contract you will be given the government default tariff, which is usually quite poor.

  • Experience: Ask around—someone in your neighborhood might have advice based on their experience.

What information is provided on your bill?

Like any utility bill, your power bill will contain all the general information you’re accustomed to such as your name, address, billing period, and more.

To determine how your bill is calculated, you’ll need to locate the following details:

  • Daily usage cost

  • Normal daily kWh cost

  • Peak kWh cost (if applicable)

The image opposite shows an example of two different bills and how this information is presented. The red circle highlights the daily supply charge, the blue circle indicates the normal kWh rate, and the green circle points out the peak kWh rate.

What type of tariff is right for You

Selecting a tariff that best suits your needs depends on your lifestyle. Here are a few examples:

  • If you have a holiday home that is not used frequently, reducing the daily rate makes sense, even if the kWh rate is higher.

  • If you are a permanent resident who is not home during the day, reducing the peak kWh rate is beneficial.

One approach,is to try to balance the cost of all three components (pea, off peak and supply charge) so that they are as close to equal as possible.

What about combining with other things

Combining different factors can be challenging when choosing a tariff. If you have Solar PV, the feed-in tariff (FIT), which is the amount the retailer pays for your solar electricity, needs to be taken into account. While every case is different and specific recommendations can’t be made, it’s generally advised not to chase high FIT rates as there might be costs elsewhere.

If you own an electric vehicle (EV), you’re in luck. There are EV-specific tariffs that offer very affordable, or even free, electricity during the middel of the day.

Finding a good tariff: online assistance

Once you’ve determined your preferred approach, you’ll need to find a tariff that suits your needs. Here are a few options:

Being open to switching suppliers regularly, even annually, is essential. It’s typically not difficult and ensures that your retailer won’t take you for granted. Most retailers offer honeymoon tariffs for new customers.

Reviewing and updating every 1-2 years

Most retailers will lock in your current tariff for a period of 1 to 2 years. After this period, you will be switched to the default government-designated rate, which can leads to higher bills.

To avoid this, you should be prepared to re-assess and change your tariff, even going back to your original one if it’s still favorable, or switching to another retailer if necessary to keep your bills down.

FAQ

Renter

Key points

  • Suitability: Electricity tariffs come with various components. It’s crucial to find one that best fits your lifestyle.

  • Choice: Numerous tariffs are available in all localities. The Victorian government websites can help you find the best one for you.

  • Expiry: Most tariffs are on contracts that expire annually. It’s important to review them every 1–2 years. If you don’t re-contract you will be given the government default tariff, which is usually quite poor.

  • Experience: Ask around—someone in your neighborhood might have advice based on their experience.

What information is provided on your bill?

Like any utility bill, your power bill will contain all the general information you’re accustomed to such as your name, address, billing period, and more.

To determine how your bill is calculated, you’ll need to locate the following details:

  • Daily usage cost

  • Normal daily kWh cost

  • Peak kWh cost (if applicable)

The image opposite shows an example of two different bills and how this information is presented. The red circle highlights the daily supply charge, the blue circle indicates the normal kWh rate, and the green circle points out the peak kWh rate.

What type of tariff is right for You

Selecting a tariff that best suits your needs depends on your lifestyle. Here are a few examples:r.

  • If you are a permanent resident who is not home during the day, reducing the peak kWh rate is beneficial.

  • If you work from home reducing the off peak may be more beneficial

One approach,is to try to balance the cost of all three components (pea, off peak and supply charge) so that they are as close to equal as possible.

Financial Assistance

If you need assistance there are a range of services that many help. Full details here

Finding a good tariff: online assistance

Once you’ve determined your preferred approach, you’ll need to find a tariff that suits your needs. Here are a few options:

Being open to switching suppliers regularly, even annually, is essential. It’s typically not difficult and ensures that your retailer won’t take you for granted. Most retailers offer honeymoon tariffs for new customers.

Reviewing and updating every 1-2 years

Most retailers will lock in your current tariff for a period of 1 to 2 years. After this period, you will be switched to the default government-designated rate, which can leads to higher bills.

To avoid this, you should be prepared to re-assess and change your tariff, even going back to your original one if it’s still favorable, or switching to another retailer if necessary to keep your bills down.

FAQ