Cheapest electricity plans in Victoria
Compare electricity providers in Victoria and see estimated annual bills based on average household usage. Finding a cheaper electricity plan can save hundreds of dollars per year. Average electricity rates in VIC are currently around 26.8c/kWh with a typical annual bill of $1,380.
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Reference bill assumptions
Estimated annual bills below are calculated for a typical Victorian 3-bedroom household using approximately 5,037 kWh per year (13.8 kWh/day). Individual bills will vary based on actual usage, discounts, and your specific plan terms.
Electricity providers in Victoria — estimated annual bills
| Provider | Avg rate (c/kWh) | Supply charge ($/day) | Est. annual bill | Rating |
|---|---|---|---|---|
CheapestGloBird Energy | 26.2c | $0.90 | $1,380 | 4.2 |
| 26.5c | $0.92 | $1,390 | 4.3 | |
| 27.1c | $0.95 | $1,420 | 3.7 | |
| 27.2c | $0.95 | $1,420 | 4.1 | |
| 27.4c | $0.97 | $1,435 | 3.9 | |
| 27.5c | $0.98 | $1,430 | 4.4 | |
| 27.6c | $0.99 | $1,440 | 3.8 | |
| 27.8c | $1.00 | $1,445 | 3.7 | |
| 27.8c | $1.00 | $1,450 | 3.8 | |
| 28.2c | $1.02 | $1,475 | 3.7 | |
| 28.5c | $1.05 | $1,490 | 3.8 | |
| 29c | $1.05 | $1,510 | 3.9 |
* Estimated annual bills are indicative only, based on reference usage assumptions above. Rates and plans change regularly — compare live plans for current pricing.
Electricity market in Victoria
Victoria has one of the most competitive electricity retail markets in Australia, with a large number of retailers competing for customers.
The Victorian Default Offer (VDO) acts as a price safety net. Market offers can be cheaper or more expensive than the VDO, so comparing is worthwhile.
How to compare electricity plans in Victoria
- 1
Check your current rate
Find your current usage rate (c/kWh) and daily supply charge on your electricity bill. This is your benchmark for comparison.
- 2
Enter your postcode
Use our comparison tool and enter your Victoria postcode to see plans available in your area.
- 3
Compare estimated annual costs
Look at the estimated annual bill for your usage level, not just the headline rate. Supply charges and usage tiers all affect your total cost.
- 4
Check contract terms
Some cheaper plans have no exit fees; others lock you in. Read the plan's Basic Plan Information Document (BPID) before signing up.
- 5
Switch online
Most retailers let you switch online in minutes. Your new retailer arranges the change and supply is not interrupted.
Why do electricity prices differ across Victoria?
Electricity prices in Victoria vary for several reasons:
- Distribution network: Your local distributor's network charges vary by region within VIC. Metropolitan areas often have different distribution costs to regional or rural areas.
- Retailer margin: Each retailer adds its own margin to the wholesale electricity cost and network charges. Smaller or newer retailers sometimes offer sharper pricing to attract customers.
- Usage tier structure: Some plans charge different rates depending on how much electricity you use. High-usage households may benefit from plans with a lower step-one rate.
- Contract type: Fixed-rate plans lock in a rate for 12–24 months, while variable plans can change. Fixed plans offer price certainty; variable plans sometimes offer lower rates but can increase.
- Solar feed-in tariff: If you have rooftop solar, the feed-in tariff rate affects your net bill. Comparing both the usage rate and the feed-in rate is important for solar households.
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Frequently asked questions
What is the cheapest electricity plan in Victoria?
The cheapest electricity plans in Victoria vary based on your usage, location, and whether you have solar. Based on average usage rates, GloBird Energy typically offer some of the most competitive rates. Use our comparison tool to find the best current offer for your postcode.
How is "cheapest" electricity assessed in Victoria?
Cheapest is assessed by comparing the estimated annual electricity bill for a typical Victorian 3-bedroom household, based on the provider's average usage rate (c/kWh) and daily supply charge. Individual bills vary based on actual usage, discounts, and plan terms.
Can I switch electricity providers in Victoria?
Victoria has one of the most competitive electricity retail markets in Australia, with a large number of retailers competing for customers. Switching is free, straightforward, and does not interrupt supply.
What is the reference price in Victoria?
The Victorian Default Offer (VDO) acts as a price safety net. Market offers can be cheaper or more expensive than the VDO, so comparing is worthwhile.
How much does electricity cost in Victoria per kWh?
Average electricity rates in Victoria are approximately 26.8c/kWh, with an average daily supply charge of $1.02. Average annual bills are around $1,380.
How do I find the cheapest electricity plan for my home in Victoria?
Use our free comparison tool and enter your postcode. You can compare current plans from retailers available in your area, sorted by estimated cost for your usage level.
Last updated: 8 March 2026. Rates are indicative estimates based on published plan data.