Victoria Energy Prices January 2020

Victoria Energy Prices January 2020An update report on the Victorian Tariff-Tracking Project

St Vincent de Paul Society & Alviss Consulting | February 2020

Victoria Energy Prices January 2020An update report on the Victorian Tariff-Tracking Project

Sophie Labaste, February 2020Alviss Consulting Pty Ltd

www.alvissconsulting.com www.vinnies.org.au

Contact: Gavin DuftyManager, Social Policy Unit VictoriaSt Vincent de Paul Society Phone: (03) 98955816 or 0439 357 129 twitter.com/gavindufty

© St Vincent de Paul Society and Alviss Consulting Pty Ltd This work is copyright. Apart from any use permitted under the Copyright Act 1968 (Ctw), no parts may be adapted, reproduced, copied, stored, distributed, published or put to commercial use without prior written permission from the St Vincent de Paul Society.

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Victoria Energy Prices January 2020: An update report on the Victorian Tariff-Tracking Project

DisclaimerThe energy offers, tariffs and bill calculations presented in this report and associated workbooks should be used as a general guide only and should not be relied upon. The workbooks are not an appropriate substitute for obtaining an offer from an energy retailer. The information presented in this report and the workbooks is not provided as financial advice. While we have taken great care to ensure accuracy of the information provided in this report and the workbooks, they are suitable for use only as a research and advocacy tool. We do not accept any legal responsibility for errors or inaccuracies. The St Vincent de Paul Society and Alviss Consulting Pty Ltd do not accept liability for any action taken based on the information provided in this report or the associated workbooks or for any loss, economic or otherwise, suffered as a result of reliance on the information presented. If you would like to obtain information about energy offers available to you as a customer, go to the Victorian Government’s website https://compare.energy.vic.gov.au/ or contact the energy retailers directly.

https://compare.energy.vic.gov.au/


TABLE OF CONTENTS

The Victorian Tariff-Tracking Project 1Key findings 21. Changes to the standing offers 5

1.1 Electricity standing offers January 2019 - January 2020 51.2 Gas standing offers January 2019 – January 2020 9

2. Market offers 132.1 Electricity market offers post January 2020 13

2.1.1. Potential savings - Differences between electricity offers 142.1.2. Changes to electricity market offers 23

2.2 Gas market offers post January 2020 252.2.1. Potential savings - Differences between gas offers 272.2.2. Changes to gas market offers 36

2.3 Solar market offers January 2020 404. Comparing all market offers 505. Total cost of energy and price changes by area 57

5.1 Inner city, inner North and Eastern suburbs 585.2 Inner West and North Western Suburbs 595.3 South Eastern suburbs and Mornington Peninsula 605.4 Outer Western suburbs and Western Victoria 605.5 Outer Northern and Eastern suburbs and Eastern Victoria 61

Victoria Energy Prices January 2020: An update report on the Victorian Tariff-Tracking Project 1

The Victorian Tariff-Tracking ProjectTo date, this project has tracked electricity and gas tariffs in Victoria from July 2008 (retail price deregulation took effect on 1 January 2009) to January 2020, and developed a spreadsheet based tool that allows consumer advocates to build on the initial analysis and continue to track changes as they occur. In 2016, market offers available to new solar customers were added to the Tariff-Tracking project. The workbook allows users to calculate annual bills based on retailers’ rates, feed in tariffs offered and additional discounts. Again, the user can enter consumption level as well as choosing to run the bill calculation based on 1.5 kW or 3 kW solar systems. We have developed five workbooks that allow the user to enter consumption levels and analyse household bills for gas and electricity:

Workbook 1: Electricity standing offers July 2008 – January 2020Workbook 2: Gas standing offers July 2008 – January 2020Workbook 3: Electricity market offers 2010 to 2020Workbook 4: Gas market offers 2010 to 2020Workbook 5: Solar market offers 2016 to 2020

The five workbooks can be accessed at the St Vincent de Paul Society Victoria’s website: www.vinnies.org.au/energy.

http://www.vinnies.org.au/energy


KEY FINDINGSIn terms of general trends, the tariff analysis found that:

S As of January 2020, AGL, Origin Energy and EnergyAustralia standing offers bills have, on average, decreased by 13%, 16% and 20% over the last year.1 However, compared to July 2019, when the Victorian Default Offer (VDO) took effect, standing offer bills have increased on average by $130 or 8%.2 See charts 1-3 below.

S The VDO only applies to single rate and controlled load tariffs. For customers on a two-rate (peak/off-peak) tariff, a time of use (TOU) tariff or a demand tariff, the retailers continue to set the standing offer price. For standing offer customers on a two-rate tariff (peak/off-peak), AGL Origin Energy, and EnergyAustralia’s two-rate offers have decreased on average, by 13%, 16% and 20%, respectively since January 2019. Compared to July 2019, all standing offers have increased by 8%.3 See charts 4 – 6 below.

S For gas standing offers, AGL and EnergyAustralia’s prices have increased slightly, while Origin Energy’s prices have remained largely unchanged (depending on the gas zone) compared to January 2019 prices. See charts 9-11 below.

S Typical consumption households (4,800 kWh per annum) can save around $235 - $350 per annum if switching from the VDO to the best published market offer (depending on their network area).4 This is largely similar to July 2019, when the maximum saving after the introduction of the VDO was between $225 - $330 per annum. It is, however, significantly less compared to January 2019, where the maximum saving at the time was $1,800 - $2,270 per annum (depending on the network area), if switching from the worst standing offer to the best market offer. See section 2.1.

S The difference between the best and the worst electricity market offers ranges from just over $360 per annum (in Citipower’s area) to $525 (in Jemena’s area) for customers with typical consumption levels.5 See section 2.1.1.

S Tango Energy’s market offers produce the lowest annual electricity bill for average consumption households in all network areas. DC Power Co, on the other hand, has the most expensive market offer in the Powercor, Ausnet, Jemena and United Energy networks. In Citipower, CovaU has the most expensive market offer.6 See section 2.1.1.

S While not all retailers changed their market offers in January 2020, some decreased their rates while others increased. Commander, Dodo Power & Gas, GloBird Energy and Momentum Energy are the retailers with the greatest price increases while Alinta Energy, Diamond Energy, Simply Energy and Amaysim had the greatest price decreases. See section 2.1.2.

S Gas customers with typical consumption (63,000 Mj) can save up to $890 - $1,040 per annum (depending on the gas zone) if switching from the worst standing offer to the best

1 Compared to offers available in January 2019. 2 The Victorian Default Offer (VDO) took effect on 1 July 2019 and all customers previously on a retailer’s standing offer have been moved to the VDO. The VDO is a Victorian Government initiative that aims to make the electricity market simpler and more affordable for all consumers. This new arrangement requires the Essential Services Commission (ESC) to set a VDO for basic metering types (single rate and controlled load tariffs) in each network area. All retailers are required to offer the VDO but they can, and still do, offer other market contracts.3 Based on standing offers as of January 2019, July 2019 and January 2020. Households consuming 4,800 kWh per annum (60% peak and 40% off-peak). 4 Based on the VDO (single rate) and the best of the published market offers (including additional discounts and/or pay on time discounts).5 Households using 4,800 kWh per annum (single rate) and all market offer bills include guaranteed discounts and pay on time discounts. Discounts that require payments to be made by direct debit are not included. 6 Ibid.


market offer.7 See section 2.2.

S The price-spread for gas market offers ranges from $340 per annum (in the Multinet Metro 2/AGL South gas zone) to $420 (in the TRU East/AGN Central 2 gas zone) for customers with typical consumption levels.8 See section 2.2.1.

S EnergyAustralia and Momentum Energy are the retailers that increased their gas prices the most in January 2020 while AGL, Alinta Energy, CovaU and Simply Energy had the greatest price decreases.9 See section 2.2.2.

S New solar customers with a 3kW system installed will have an annual bill that is between $860 and $940 less (depending on network area) than non-solar customers with the same consumption level.10 See section 2.3.

S The maximum solar price-spread is around $424 in Ausnet, $375 in Jemena, $340 in Powercor, $390 in United Energy and $325 in Citipower.11 See section 2.3.

S In January 2020, the regulated electricity network use of system (NUOS) charges increased in all network areas. The greatest increase was in the United Energy network (12%). See section 3.

S For market offers, the NUOS proportion varies significantly between retailers. On average (across all retailers’ market offers), the NUOS proportion of the total bill is 38% in Ausnet, 32% in Powercor, 29% in Citipower and 30% in Jemena and United Energy. That is slightly higher proportions compared to the VDO.12 See section 3.

S Section 4 compares all published electricity and gas market offers as of January 2020. As such it includes offers with various conditions such as direct debit payments, membership of sports clubs or frequent flyer programs, as well as other conditions.13 Twenty-five retailers offer 54 electricity market offers in the Citipower network and twelve of these offers require payment by direct debit. Only four of the offers have guaranteed (non-conditional) discounts while twelve of the offers have a conditional pay on time discount. Furthermore, monthly billing is becoming an increasingly common feature of market offers and forty-three (80%) of the offers require customers to pay monthly instead of quarterly.

S In January 2020, the regulated electricity network charges increased in all network areas. The greatest increase was in the United Energy network (12%). See section 3.

S The average mean electricity market offer bill in the Citipower network is $1,535 in January 2020, compared to around $1,465 in January 2019 (an increase of 5%). Whereas

7 Based on the worst of the retailers’ standing offer and the best of the published market offers (including dual fuel offers, guaranteed discounts and/or pay on time discounts). 8 Households using 63,000 Mj per annum. All published market offers (including dual fuel offers, guaranteed discounts and/or pay on time discounts). 9 Bill calculations based on average electricity (4,800 kWh) market offers including guaranteed discounts and pay on time discounts.10 Ibid.11 Based on the worst and the best of the published market offers for single rate customers using 4,800 kWh per annum and a 3kW solar system installed. Bills include additional discounts and/or pay on time discounts and FIT, 3kW solar system.12 The annual Network Use of System Charges (NUOS) have been calculated by allocating 1,200 kWh per quarter (again based on annual consumption of 4,800 kWh) to the step charges stipulated in the NUOS. The annual NUOS cost also includes fixed charges. Note that as United Energy’s NUOS charge has been a seasonal tariff over the last four years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate. NUOS charges do not include smart metering costs.13 The standard analysis of market offers in the Tariff-Tracking reports do not include offers where the customer is required to pay by direct debit or be a member of a program/organisation. It also only includes one offer for each retailer.


the price spread has significantly reduced compared to January 2019, the average mean market offer bill has increased. A household on CovaU’s Smart Saver offer would pay around $1,748 for 12 months of supply while a household on Tango Energy’s Home Select offer would pay $1,384 over the same period. See section 4.

S Dual fuel standing offer customers in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga, continue to have the highest average annual combined energy bills. Based on typical consumption levels, the average combined annual energy bill in these areas is now $3,790.14 This is, however, $310 less than it was last year (January 2019). See section 5.

14 Bill calculations are based on the incumbent retailers’ average standing offer for electricity and gas customers for dual fuel households using 4,800 kWh and 63,000 Mj per annum in the Ausnet electricity network and AGN North/Origin North gas zone.


1. CHANGES TO THE STANDING OFFERSThe Victorian Government deregulated retail prices from 1 January 2009, and between January 2009 and July 2019 the retailers determined both their standing offer and market offer rates. The Victorian Default Offer (VDO) is a Victorian Government initiative that aims to make the electricity market simpler and more affordable for all consumers.15 This new arrangement requires the Essential Services Commission (ESC) to set a VDO for basic tariff types (single rate and controlled load tariffs) in each network area. All retailers are required to offer the VDO but they can, and still do, offer other market contracts. The VDO took effect on 1 July 2019 and all customers previously on a retailer’s standing offer have been moved to the VDO.

1.1 Electricity standing offers January 2019 - January 2020

As in the previous Tariff-Tracking reports, the bill calculations in this report have assumed an average consumption of 4,800 kWh per annum for households on the single rate.16 These are generally households connected to mains gas and therefore have a lower consumption than all-electric households. For all-electric households, which are predominantly in rural areas, the bill calculations have assumed an average consumption of 7,000 kWh per annum. The rates used in the calculations are those for the controlled load offers and a split of 70% peak and 30% off-peak has been assumed. There are five network businesses in Victoria: Powercor and Ausnet distributing electricity to rural and regional Victoria and Citipower, Jemena and United Energy.

As of January 2020, standing offer bills have increased by $130 (or 8%) since the VDO was introduced back in July 2019. However, if we compare January 2020 to January 2019 (when retailers still determined their own standing offers), there are notable differences between the retailers.

Charts 1 - 3 below show the incumbent retailers’ electricity standing offer/VDO as of January 2019, July 2019 and January 2020.

On average, AGL’s standing offer/VDO is now 13% less than in January 2019. AGL is the incumbent retailer in the Jemena and United Energy networks. Between January 2019 and January 2020, customers on a standing offer/VDO with an annual consumption of 4,800 kWh (single rate) will experience an annual decrease of $320 (or 16%) in Jemena and $200 (or 10%) in United Energy’s area.

15 See https://www.energy.vic.gov.au/victoriandefaultoffer.16 Consumption levels do vary between network areas, but we believe 4,800 kWh and 7,000 kWh per annum are appropriate benchmarks to analyse tariff changes and bill impacts for Victorian households.

https://www.energy.vic.gov.au/victoriandefaultoffer


CHART 1 | Changes to AGL’s standing offers/VDO (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based on single rate tariff and annual consumption of 4,800 kWh

On average, Origin Energy’s standing offer/VDO is now 16% less than last year. Origin Energy is the incumbent retailer in the Citipower and Powercor networks. Standing offer/VDO customers with an annual consumption of 4,800 kWh (single rate) will experience an annual decrease of $275 (or 15%) in Citipower and $430 (or 20%) in Powercor’s area. See chart 2 below.

CHART 2 | Changes to Origin Energy’s standing offers/VDO (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based on single rate tariff and annual consumption of 4,800 kWh

EnergyAustralia’s standing offer has decreased the most since January 2019: its standing offer is now 20% less than last year, on average. EnergyAustralia is the incumbent retailer in the Ausnet network and standing offer customers with an annual consumption of 4,800 kWh (single rate) will experience an annual decrease of $425 (or 18%) in this network area. See chart 3 below.

$1,200

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Citipower Powercor Ausnet Jemena United

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Jan'19 Jul'19 Jan'20

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CHART 3 | Changes to EnergyAustralia’s standing offers/VDO (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based on single rate tariff and annual consumption of 4,800 kWh

The VDO only applies to single rate and controlled load tariffs. For customers on a two-rate (peak/off-peak) tariff, a time of use (TOU) tariff or a demand tariff, the retailers continue to set the standing offer price.17

Charts 4 - 6 below show the incumbent retailers’ electricity standing offer for two-rate tariffs as of January 2019, July 2019 and January 2020. It shows that, all three retailers’ two-rate offers have decreased since January 2019: on average, AGL’s standing offer has decreased by 13%, Origin Energy’s by 16% and EnergyAustralia’s by 20%. Compared to July 2019, however, AGL and Origin Energy’s two-rate standing offers have increased on average by 3% and 6% respectively, whereas EnergyAustralia’s standing offers have decreased by 20%.

CHART 4 | Changes to AGL’s standing offers (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based on two-rate tariff and annual consumption of 4,800 kWh (60% peak and 4% off-peak)

17 Note that while there is no VDO rates for two-rate and TOU tariffs as such, the retailers are required to offer standing offers within the maximum bill determination set by the VDO.

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CHART 5 | Changes to Origin Energy’s standing offers (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based on two-rate tariff and annual consumption of 4,800 kWh (60% peak and 4% off-peak)

CHART 6 | Changes to EnergyAustralia’s standing offers (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based on two-rate tariff and annual consumption of 4,800 kWh (60% peak and 40% off-peak)

As highlighted in the previous update report on the Victorian Tariff-Tracker project, some retailers place customers on their standing offer rates when the market offer’s ‘benefit period’ expires and it is therefore important that market offer customers are aware of retailers with very high standing offer rates.18 For customers on single rate or controlled load tariffs this is no longer an issue as the VDO stipulates the standing offer rates for all retailers. Customers on other tariff types, such as two-rate, however, may want to consider the retailers’ standing offer rates.

18 St Vincent de Paul Society and Alviss Consulting, The NEM -A hazy retail maze, December 2016.

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The difference between standing offer prices for two-rate offers is slight when comparing all 19 retailers as of January 2020.19 The difference between the worst and the best standing offer is highest in the United Energy network where the difference is approximately $100 per annum for households consuming 4,800 kWh per annum on a two-rate tariff. By comparison, the maximum difference between the worst and the best single rate standing offer was $1,700 in January 2019 (prior to the VDO taking effect) and $1,580 in July 2019 (after the VDO taking effect). Chart 7 below shows retailers average (across all five network areas) two-rate standing offer post July 2019.

CHART 7 | Retailers’ average standing offers (across all five network areas) as annual bills (incl. GST) post January 2020 - Calculations based on two-rate tariff and annual consumption of 4,800 kWh (60% peak and 4% off-peak)

1.2 Gas standing offers January 2019 – January 2020

There are three gas distributors and eight main gas zones. The distributors are Multinet, Envestra/Australian Gas Network (AGN) and Ausnet. The gas zones are: Multinet 1/Origin Metro, Multinet 2/AGL South, AGN North/Origin North, AGN Central 2/TRU East, AGN Central 1/Origin South East, Ausnet West/TRU West, Ausnet Central 2/AGL North and Ausnet Central 1/TRU Central. The names of the gas zones derive from when AGL, Origin Energy and TRU (now EnergyAustralia) were energy retailers with designated areas. These three retailers are not distribution businesses and they are not involved in setting the distribution charges in these areas. The companies’ names are merely used as a descriptor for the various gas zones that Multinet, Envestra/AGN and Ausnet distribute gas to. There are also some smaller rural zones (such as Mildura) that are not included in the Tariff-Tracking tool.

Chart 8 below shows that households experience price changes of between –0.5% to 3.2% in January 2020 when comparing to January 2019 prices. AGL and EnergyAustralia’s prices have increased slightly while Origin Energy’s prices have remained somewhat unchanged, depending on the network.

19 Note that the requirement on retailers to offer standing offers (irrespective of tariff type) within the maximum bill determination set by the VDO took effect on 1 January 2020.

$1,680

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CHART 8 | Changes (%) to incumbent retailers’ standing offers from January 2019 to January 2020 - Calculations based an annual consumption of 63,000 Mj

Charts 9 - 11 below show the incumbent retailers’ gas standing offer as of January 2019, July 2019 and January 2020.

CHART 9 | Changes to AGL’s standing offers (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based an annual consumption of 63,000 Mj

-1.0%

-0.5%

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Multi 1 Multi 2 AGNNorth

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AGL Origin EnergyAustralia

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CHART 10 | Changes to Origin Energy’s standing offers (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based an annual consumption of 63,000 Mj

CHART 11 | Changes to EnergyAustralia’s standing offers (as annual bills, incl. GST) from January 2019 to January 2020 - Calculations based an annual consumption of 63,000 Mj

Three of the 2nd tier retailers (Alinta Energy, Momentum Energy and Simply Energy) have increased their gas standing offers. CovaU, Dodo Power & Gas, GloBird Energy and Powershop, however, have reduced their gas standing offers. CovaU has the largest decrease, with an 8% reduction in the gas standing offer. Chart 12 below compares annual bills as of January 2019, July 2019 and January 2020 for 14 retailers in the Multinet 1/Origin metro gas zone.

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CHART 12 | Changes to standing offers (as annual bills, incl. GST) from January 2019 to January 2020 in the Multinet 1/Origin Metro gas zone - Calculations based an annual consumption of 63,000 Mj

$1,000

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2. MARKET OFFERSWith the introduction of the VDO on 1 July 2019, retailers no longer set their own electricity standing offers but most have changed their market offers post January 2020. For gas, retailers continue to determine their own standing offer and market offer rates.

2.1 Electricity market offers post January 202020

The price-spread, or the difference between the best market offer and the VDO (as well as the differences between market offers), will change somewhat throughout the year but as of January 2020:

• Typical consumption households (4,800 kWh per annum) on the VDO can save around $235 - $350 per annum if switching to the best published market offer (depending on the network area).21 This is largely similar to July 2019, when the maximum saving after the introduction of the VDO was between $225 - $330 per annum. It is, however, significantly less compared to January 2019, where the maximum saving was $1,800-$2,270 per annum (depending on the network area), if switching from the worst standing offer to the best market offer.

• The greatest potential annual saving is in United Energy’s network area (approximately $350).22

• The difference between the best and the worst market offers ranges from just over $360 per annum (in Citipower’s area) to $525 (in Jemena’s area) for customers with typical consumption levels.23

Table 1 shows additional discounts applicable to the electricity retailers’ published market offer rates. Some of the retailers have multiple market offers and may offer higher (or lower) discounts than those listed here. However, if the discount is higher the length of the contract term is typically longer. In other cases, the discount might be higher, but the customer must agree to pay by direct debit.24

TABLE 1 | Electricity market offer features January 202025

Retailer Name Effective from

Guaranteed discount

Pay on time discount

Contract term/benefit period

Other conditions

1st Energy 1st Saver 9/12/19 10% off usage No Monthly billing only

AGL Essentials Saver 1/1/20 No No No Monthly billing only

Alinta Energy Home Deal 6/1/20 No No No Monthly billing only

Click Energy Hibiscus 1/1/20 No No No Monthly billing only

Commander Market offer 1/1/20 No No No Monthly billing only

20 The market offers were collected from the retailers’ websites between 9 January 2020 and 14 January 2020 and it should be noted that retailers may change their rates at any time.21 Based on the VDO (single rate) and the best of the published market offers (including additional discounts and/or pay on time discounts).22 Ibid.23 Households using 4,800 kWh per annum (single rate) and all market offer bills include additional discounts and/or pay on time discounts. 24 Diamond Energy, for example, has a direct debit discount where customers receive a 7% discount off their electricity bill. This discount is not included in the bill calculations presented in this report.25 Most retailers have more than one market offer product. The offers used for this analysis are those we deem on-going, key products with as few conditions (i.e. direct debit, e-billing and exit fees) as possible. These market offers were collected from the retailers’ websites between 9 January 2020 and 14 January 2020.



Guaranteed discount



Other conditions

CovaU^ Smart Saver 1/1/20 No 30% off usage No Monthly billing only

Diamond Energy^

Renewable Saver 1/9/19 No 7% off

bill No No

Dodo Power & Gas Market Offer 1/1/20 No No No Monthly billing only

EnergyAustralia Total Plan Home 1/1/20 6% off bill No 12 months No

GloBird Energy^ VicSave 16/8/19 No No No Monthly billing only

Lumo Energy Value 1/1/20 No 3% off bill No Monthly billing only

Momentum Energy

SmilePower Flexi 1/1/20 No No No Monthly billing only

Origin Energy Flexi 1/1/20 3% off bill No 12 months No

Tango Energy Home Select 22/10/19 No No No Monthly billing only

Powerdirect Rate Saver 1/1/20 No No 12 months No

Powershop* Shopper with Mega Pack 1/1/20 No 10% off

bill No Direct Debit & monthly billing only

DC Power Co Market offer 1/1/20 No No No Direct Debit & monthly billing only

Red Energy Living Energy Saver 1/1/20 No 10% off

bill No Monthly billing only

Simply Energy Plus 1/1/20 No 12% off usage No No

Sumo Power Pay on Time 1/1/20 No 6% off bill No Monthly billing only

Amaysim Classic Electricity 1/1/20 No No No Monthly billing only

Powerclub Powerbank Home 1/1/20 No No No Direct Debit &

monthly billing only

Amber Electric Market Offer 1/7/19 No No No Direct Debit & monthly billing only

EnergyLocals Online Saver 1/1/20 No No No Monthly billing only

Kogan Energy Market Offer 1/1/20 No No No Direct Debit & monthly billing only

^ Additional discounts for direct debit, e-billing or dual fuel customers may apply* Powershop’s conditional discount is not based on pay on time but it does require customers to actively purchase special deals.

2.1.1. Potential savings - Differences between electricity offers

Typical consumption households (4,800 kWh per annum) on the VDO can save around $235 - $350 per annum if switching to the best published market offer (depending on their network area).26 This is less compared to last year (January 2019) and the difference between the worst and the best market offers is also reducing. Customers on the best market offer will pay approximately $365 - $525 less per annum compared to customers on the worst market offer. It should be stressed that the majority of these discounts are conditional on bills being paid on time and households with cash-flow issues thus may find themselves unable to achieve the

26 Based on market offer bills that include guaranteed discounts and pay on time discounts.


annual bills estimated for some of the best offers included in the charts below.

Chart 13 below shows the retail market offer price-spread within each of the five network areas.27

CHART 13 | Maximum price-spread for market offers in each network area January 2020 (incl. GST), including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate)

Charts 14 – 18 below show annual retail bills for typical consumption (4,800 kWh per annum, single rate) for each of the five network areas. The red columns to the left represent market offers including guaranteed discounts (but not pay on time discounts), the orange columns are market offer bills including pay on time discounts while the blue line represents the VDO bill.28

27 Households using 4,800 kWh per annum (single rate) and all market offer bills include guaranteed discounts and/or pay on time discounts.28 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in table 1. Note that Tango Energy was previously known as Pacific Hydro.

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200


$ pe

r ann

um


CitipowerIn Citipower’s area, the average market offer post January 2020 is approximately $1,516. A typical consumption household on the VDO can save around $235 per annum if switching to the best published market offer. Tango Energy is the retailer that currently offers the best market offer rates in this area.

CHART 14 | Citipower’s network area: Estimated annual bills (incl. GST) for electricity standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate)

The difference between the best and the worst market offer is greater than the difference between the VDO and the best market offer. Tango Energy’s offer is approximately $365 less than CovaU’s market offer post discounts (and pay on time discounts) for households with this consumption level. Figure 1 below shows estimated annual bills for market offers post discounts in Citipower’s network area.29

29 Bills (incl. GST) for market offers January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate). These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations.

$-

$500

$1,000

$1,500

$2,000

$2,500

1st E

nerg

yAG

LAl

inta E

nerg

yCl

ick E

nerg

yCo

mman

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Cova

U

Diam

ond

Ener

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Dodo

Pow

er &

Gas

Energ

yAus

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GloB

ird E

nerg

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Retail offers in Citipower's area

Market (ex POT) Market (inc POT) VDO


PowercorIn Powercor’s network area, the average market offer post January 2020 is approximately $1,625. A typical consumption household on the VDO can save around $280 per annum if switching to the best published market offer. Tango Energy is the retailer that currently offers the best market offer rates in this area.

CHART 15 | Powercor’s network area: Estimated annual bills (incl. GST) for electricity standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate)

The difference between the best and the worst market offer is greater than the difference between the VDO and the best market offer. Tango Energy’s offer is approximately $470 less than DC Power Co’s market offer post discounts (and pay on time discounts) for households with this consumption level. Figure 2 below shows estimated annual bills for market offers post discounts in Powercor’s network area.30

30 Bills (incl GST) for market offers January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate). These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations.

$-

$500

$1,000

$1,500

$2,000

$2,500

1st E

nerg

yAG

LAl

inta E

nerg

yCl

ick E

nerg

yCo

mman

der

Cova

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Diam

ond

Ener

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Dodo

Pow

er &

Gas

Energ

yAus

tralia

GloB

ird E

nerg

yLu

mo E

nerg

y

Mom

entu

m En

ergy

Origi

n Ene

rgy

Tang

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ergy

Powe

rdire

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DC P

ower

Co

Red

Energ

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Ener

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Koga

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$ pe

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Retail offers in Powercor's area



AusnetIn Ausnet’s network area, the average market offer post January 2020 is approximately $1,785. A typical consumption household on the VDO can save around $300 per annum if switching to the best published market offer. Tango Energy is again the retailer that currently offers the best market offer rates in this area. offer rates in this network area.

CHART 16 | Ausnet’s network area: Estimated annual bills (incl GST) for electricity standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate)

As in other network areas, the difference between the best and the worst market offers is significant. Tango Energy’s offer is approximately $480 less per annum than DC Power Co’s market offer post discounts for households with this consumption level. Figure 3 below shows estimated annual bills for market offers post discounts in Ausnet’s network area.31


$-

$500

$1,000

$1,500

$2,000

$2,500

1st E

nerg

yAG

LAl

inta E

nerg

yCl

ick E

nerg

yCo

mman

der

Cova

U

Diam

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Ener

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Dodo

Pow

er &

Gas

Energ

yAus

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GloB

ird E

nerg

yLu

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nerg

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Mom

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ergy

Origi

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Tang

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ergy

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Retail offers in Ausnet's area



Tango Energy $1,600

Powerclub $1,665

Alinta Energy $1,672

AGL $1,676

Powerdirect $1,676

Kogan Energy $1,681

Commander $1,696

Dodo Power & Gas $1,696

Simply Energy $1,726

Powershop $1,741

Diamond Energy $1,750

1st Energy $1,754

Lumo Energy $1,767

Amber Electric $1,771

EnergyAustralia $1,790

Sumo Power $1,790

Click Energy $1,828

EnergyLocals $1,839

Origin Energy $1,847

Red Energy $1,848

Momentum Energy $1,866

Amaysim $1,885

GloBird Energy $1,904

DC Power Co $2,065

CovaU $2,083

FIGURE 3 | Ausnet’s network area: Lowest to highest annual bills

Tango Energy $1,384


Powerclub $1,409

Kogan Energy $1,419

Commander $1,446


AGL $1,458

Powerdirect $1,458


Powershop $1,481


1st Energy $1,498

Lumo Energy $1,499



Sumo Power $1,523


Click Energy $1,555

EnergyLocals $1,556


Red Energy $1,571


Amaysim $1,604

DC Power Co $1,733

CovaU $1,748

FIGURE 1 | Citipower’s network area: Lowest to highest annual bills

Tango Energy $1,446


Powerclub $1,525

Kogan Energy $1,541

Commander $1,542


AGL $1,554

Powerdirect $1,554



Lumo Energy $1,596

1st Energy $1,599


Sumo Energy $1,623


Powershop $1,631

Click Energy $1,657


Red Energy $1,675

EnergyLocals $1,677


Amaysim $1,709


CovaU $1,858

DC Power Co $1,915

FIGURE 2 | Powercor’s network area: Lowest to highest annual bills


JemenaIn Jemena’s network area, the average market offer post January 2020 is approximately $1,600. A typical consumption household on the VDO can save around $320 per annum if switching to the best published market offer. Tango Energy is the retailer that currently offers the best market offer rates.

CHART 17 | Jemena’s network area: Estimated annual bills (incl. GST) for electricity standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate)

The difference between the best and the worst market offer is greater than the difference between the VDO and the best market offer. Tango Energy’s offer is $525 less than DC Power Co’s market offer post discounts (and pay on time discounts) for households with this consumption level. Figure 4 shows estimated annual bills for market offers post discounts in Jemena’s network area.32


$-

$500

$1,000

$1,500

$2,000

$2,500

1st E

nerg

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LAl

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nerg

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Pow

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Gas

Energ

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Retail offers in Jemena's area



United EnergyIn United Energy’s network area, the average market offer post January 2020 is approximately $1,610. A typical consumption household on the VDO can save around $350 per annum if switching to the best published market offer. As in other network areas, Tango Energy is the retailer that currently offers the best market offer rates.

CHART 18 | United Energy’s network area: Estimated annual bills (incl. GST) for electricity standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate)

As in other network areas, the difference between the best and the worst market offers is significant. Tango Energy’s offer is approximately $590 less per annum than CovaU’s market offer post discounts for households with this consumption level. Figure 5 shows estimated annual bills for market offers post discounts in United Energy’s network area.33


$-

$500

$1,000

$1,500

$2,000

$2,500

1st E

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Energ

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Retail offers in United Energy's area



FIGURE 4 | Jemena’s network area: Lowest to highest annual bills

Tango Energy $1,399

Kogan Energy $1,451

Powerclub $1,458


Commander $1,517


AGL $1,546

Powerdirect $1,546



Powershop $1,577

Lumo Energy $1,580

1st Energy $1,582



Sumo Power $1,614

EnergyLocals $1,619

Click Energy $1,649


Red Energy $1,666


Amaysim $1,700


CovaU $1,833

DC Power Co $1,924

FIGURE 5 | United Energy’s network area: Lowest to highest annual bills

Tango Energy $1,390

Powerclub $1,477

Commander $1,500Dodo Power & Gas $1,500

Kogan Energy $1,500


AGL $1,532

Powerdirect $1,532

Powershop $1,533



Lumo Energy $1,578

1st Energy $1,599

EnergyLocals $1,609



Sumo Power $1,637

Click Energy $1,672


Red Energy $1,689


Amaysim $1,724


CovaU $1,845

DC Power Co $1,889


2.1.2. Changes to electricity market offers

While not all retailers changed their market offers in January 2020, some decreased their rates while others increased. Commander, Dodo Power & Gas, GloBird Energy and Momentum Energy are the retailers with the greatest price increases while Alinta Energy, Diamond Energy, Simply Energy and Amaysim had the greatest price decreases. Charts 19 – 23 below show retailers market offers (as annual bills) as of July 2019 and January 2020, for each network area.

CHART 19 | Citipower’s network area: Changes to annual bills for electricity market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 4,800 kWh per annum (single rate), incl. GST

From July 2019 to January 2020, the VDO increased by around $100 (7%) in Citipower’s network area. Almost half of the retailers with market offers in this network area increased their prices at a rate higher than the VDO’s. GloBird Energy and Momentum Energy have the highest increases at approximately 14%.

CHART 20 | Powercor’s network area: Changes to annual bills for electricity market offers from July 2019 to January 2020, including discounts and pay on time discounts – Households consuming 4,800 kWh per annum (single rate), incl. GST

$0

$200$400$600$800

$1,000$1,200$1,400$1,600

$1,800$2,000

1st E

nergy AGL

Alinta E

nergy

Click En

ergy

Comman

der

CovaU

Diamon

d Ene

rgy

Dodo Po

wer & G

as

EnergyA

ustral

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GloBird

Energ

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Powerd

irect

Powers

hop

Red En

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Simply

Energ

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Sumo P

ower

Amaysim

DC Power

Co

Powerc

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Citipower

Jul-19 Jan-20

$0$200

$400$600$800

$1,000$1,200

$1,400$1,600$1,800$2,000

1st E

nergy AGL

Alinta E

nergy

Click En

ergy

Comman

der

CovaU

Diamon

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EnergyA

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GloBird

Energ

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ergy

Origin

Energ

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Powerd

irect

Powers

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Red En

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Simply

Energ

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Sumo P

ower

Amaysim

DC Power

Co

Powerc

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$ pe

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Powercor

Jul-19 Jan-20


From July 2019 to January 2020, the VDO increased by approximately $125 (8%) in Powercor’s network area. Almost half of the retailers with market offers in this network area increased their prices at a rate higher than the VDO’s. Once again, GloBird Energy and Momentum Energy have the highest increases, with a 23% and 14% increase, respectively.

CHART 21 | Ausnet’s network area: Changes to annual bills for electricity market offers from July 2019 to January 2020, including discounts and pay on time discounts – Households consuming 4,800 kWh per annum (single rate), incl. GST

From July 2019 to January 2020, the VDO increased by approximately $140 (8%) in Ausnet’s network area. Almost half of the retailers with market offers in this network area increased their prices at a rate higher than the VDO’s. GloBird Energy, Momentum Energy and Tango Energy have the highest increases, with a 24% for GloBird Energy and a 12% for both Momentum Energy and Tango Energy.

CHART 22 | Jemena’s network area: Changes to annual bills for electricity market offers from July 2019 to January 2020, including discounts and pay on time discounts – Households consuming 4,800 kWh per annum (single rate), incl. GST

$0$200$400

$600$800

$1,000$1,200$1,400

$1,600$1,800$2,000

1st E

nergy AGL

Alinta E

nergy

Click En

ergy

Comman

der

CovaU

Diamon

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as

EnergyA

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GloBird

Energ

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Lumo E

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Origin

Energ

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Tang

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Powerd

irect

Powers

hop

Red En

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Simply

Energ

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Sumo P

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Amaysim

DC Power

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Powerc

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Jemena

Jul-19 Jan-20

$0

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$1,000

$1,200

$1,400

$1,600

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$2,000

1st E

nergy AGL

Alinta E

nergy

Click En

ergy

Comman

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Simply

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Sumo P

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Amaysim

DC Power

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Powerc

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$ pe

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Ausnet

Jul-19 Jan-20


From July 2019 to January 2020, the VDO increased by approximately $130 (8%) in Jemena’s network area. Almost half of the retailers with market offers in this network area increased their prices at a rate higher than the VDO’s. GloBird Energy, Momentum Energy, Dodo Power & Gas and Commander have the highest increases, with a 25% increase for GloBird Energy, 14% for Momentum Energy and 12% for both Dodo Power & Gas and Commander.

CHART 23 | United Energy’s network area: Changes to annual bills for electricity market offers from July 2019 to January 2020, including discounts and pay on time discounts – Households consuming 4,800 kWh per annum (single rate), incl. GST

From July 2019 to January 2020, the VDO increased by approximately $150 (10%) in United Energy’s network area. Eight out of the 22 retailers with market offers in this network area increased their prices at a rate higher than the VDO’s. Once again, GloBird Energy, Momentum Energy, Dodo Power & Gas and Commander have the highest increases, with a 30% increase for GloBird Energy, 19% for Momentum Energy and 13% for both Dodo Power & Gas and Commander.

2.2 Gas market offers post January 202034

• Typical consumption households (63,000 Mj) can save $890 - $1,040 per annum (depending on their gas zone) if switching from the worst standing offer to the best market offer.35

• The greatest potential savings are in the TRU East/AGN Central 2 gas zone.36 The difference between the best and the worst market offers ranges from $340 per annum (Multinet Metro 2/AGL South gas zone) to $420 (TRU East/AGN Central 2 gas zone) for customers with typical consumption levels.37

Chart 24 below shows the retail market offer price-spread within each of the eight main gas pricing zones.

34 These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations.35 Based on the worst of the retailers’ standing offer and the best of the published market offers (including additional discounts and/or pay on time discounts).36 Ibid.37 Households using 63,000 Mj per annum. All market offer bills include additional discounts and/or pay on time discounts.

$0$200$400

$600$800

$1,000$1,200$1,400

$1,600$1,800$2,000

1st E

nergy AGL

Alinta E

nergy

Click En

ergy

Comman

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Diamon

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United Energy

Jul-19 Jan-20


CHART 24 | Maximum price-spread in each pricing zone January 2020 (incl. GST), including discounts and pay on time discounts - Households consuming 63,000 Mj per annum

As with electricity, additional discounts apply to the gas market offer rates. The majority of these discounts are now conditional on the customer paying the bill by the due date. Table 2 below shows additional discounts applicable to the gas retailers’ published market offer rates.

TABLE 2 | Gas market offer features January 202038


Guaranteed discount



Other conditions

AGL Essentials Savers 1/1/20 No No No No

Alinta Energy Home Deal 6/1/20 No No No No

Click Energy Hibiscus 1/1/20 No No NoMonthly billing and direct debit only

CovaU Smart Saver 1/1/20 16% off usage No No Monthly billing

only

Dodo Power & Gas^ Market offer 17/9/19 No 20% off

usage No No

EnergyAustralia Total Plan 1/1/20 23% off bill No 12 months No

Lumo Energy Value 1/1/20 No 3% off bill No No

Momentum Energy Market offer 1/1/20 No No No No

Origin Energy Flexi 1/1/20 10% off bill No 12 months No

Red Energy Living Energy Saver 1/1/20 No 10% off bill No No

Simply Energy Plus 1/1/20 No 12% off bill No No

Sumo Power Select 1/7/19 No 5% off bill 12 months No

38 Most retailers have more than one market offer product. The offers used for this analysis are those we deem on-going, key products with as few conditions (i.e. direct debit, e-billing and exit fees) as possible. These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020 and it must be noted that retailers may change their rates at any time.

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

$1,900

Mutil 1 Multi 2 AGNNorth

AGNCentral 2

AGNCentral 1

AusnetWest

AusnetCentral 2

AusnetCentral 1

$ pe

r ann

um



Guaranteed discount



Other conditions

Amaysim Gas as you go 1/1/20 No No No Monthly billing only

GloBird Energy GloSave^ 1/1/20 No 5% off bill No Monthly billing only

Powershop* Shopper with Gas Saver 1/1/20 No 5% off bill No No

DC Power Co Market offer 1/1/20 No No No Direct debit only

1st Energy 1st Saver 23/9/19 No 15% off bill No Monthly billing only

Kogan Energy Market offer 1/1/20 No No No Direct debit only

^ Additional discounts for direct debit, e-billing or dual fuel customers may apply* Powershop’s conditional discount is not based on pay on time but it does require customers to actively purchase special deals.

2.2.1. Potential savings - Differences between gas offers

Typical consumption households (63,000 Mj per annum) on the worst standing offer can save $890 - $1,040 per annum if switching to the best published market offer (depending on their gas zone).

Charts 25 - 32 below show annual retail bills for typical consumption (63,000 Mj per annum) for each of the eight main gas zones. The blue columns to the left represent the standing offer bill, the red columns are the market offers including guaranteed discounts (but not pay on time discounts) while the green columns are market offer bills including pay on time discounts.39 Figures 6 – 13 below rank gas market offers according to size of annual bill.40

39 Based on market offer bills that include discounts and pay on time discounts.40 As a retailer with good value gas rates can have expensive electricity rates (and vice versa), we seek to focus on retail offers available to customers independently from other products.


Multinet 1/Origin Metro Gas ZoneIn the Multinet 1 gas zone, average consumption households on the worst standing offer can save approximately $900 per annum if switching to the best published market offer. AGL is the retailer with the best market offer rates in this gas zone.

CHART 25 | Multinet 1/Origin Metro gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum41

Figure 6 below shows estimated annual bills for stand-alone gas market offers post discounts in the Multinet 1 gas zone. The difference between the best (AGL) and the worst (CovaU) is approximately $350 per annum.

FIGURE 6 | Multinet 1/Origin Metro gas network area: Lowest to highest annual bills (incl. GST)42

41 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2.42 These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020.

1st Energy $1,475


Lumo Energy $1,480

Red Energy $1,496

DC Power Co $1,553



Amaysim $1,550

Kogan Energy $1,624


Click Energy $1,687

CovaU $1,724

Origin Energy $1,527AGL $1,378Dodo Power & Gas $1,403

Powershop $1,452

Sumo Power $1,455

GloBird $1,455

$800

$1,000$1,200

$1,400$1,600

$1,800

$2,000$2,200

$2,400

$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

Dodo Pow

er & Gas

EnergyA

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Lumo E

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Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

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Kogan E

nergy

$ pe

r ann

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Retail offers in Multinet 1 gas zone

Standing Market (ex POT) Market (incl POT)


Multinet 2/AGL South Gas ZoneIn the Multinet 2 gas zone, average consumption households on the worst standing offer can save approximately $890 per annum if switching to the best published market offer. AGL is the retailer with the best market offer rates in this gas zone.

CHART 26 | Multinet 2/AGL South gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum43

Figure 7 below shows estimated annual bills for stand-alone gas market offers post discounts in the Multinet 2 gas zone. The difference between the best (AGL) and the worst (CovaU) is approximately $340 per annum.

FIGURE 7 | Multinet 2/AGL South gas network area: Lowest to highest annual bills (incl. GST)44

43 Discounts have been applied to consumption and/or total bill as per offers listed in the table 2.44 These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020.

Red Energy $1,496

DC Power CO $1,499




Amaysim $1,550


Kogan Energy $1,624


Click Energy $1,687

CovaU $1,724

AGL $1,387

Sumo Power $1,452

Powershop $1,452

GloBird $1,455

1st Energy $1,475


Lumo Energy $1,495

$800$1,000

$1,200

$1,400$1,600

$1,800$2,000

$2,200

$2,400$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

Dodo Pow

er & Gas

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

rgy

Kogan E

nergy

$ pe

r ann

um

Retail offers in Multinet 2 gas zone



AGN North/Origin North Gas ZoneIn the AGN North gas zone, average consumption households on the worst standing offer can save approximately $990 per annum if switching to the best published market offer. Again, AGL is the retailer with the best market offer rates.

CHART 27 | AGN North/Origin North gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum45

Figure 8 below shows estimated annual bills for gas market offers post discounts in the AGN North gas zone. The difference between the best (AGL) and the worst (Click Energy) is approximately $370 per annum.

FIGURE 8 | AGN North/Origin North gas zone: Lowest to highest annual bills (incl. GST)46

45 Discounts have been applied to consumption and/or total bill as per offers listed in the table 2.46 These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020.

Red Energy $1,552

1st Energy $1,553

Lumo Energy $1,537

Kogan Energy $1,570



DC Power Co $1,575


Amaysim $1,632

CovaU $1,668

Click Energy $1,776

AGL $1,408Dodo Power & Gas $1,411

GloBird $1,436

Sumo Power $1,466



Powershop $1,528

$800

$1,000

$1,200$1,400

$1,600$1,800

$2,000

$2,200$2,400

$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

Dodo Pow

er & Gas

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

rgy

Kogan E

nergy

$ pe

r ann

um

Retail offers in AGN North gas zone



AGN Central 2/Tru East Gas Zone In the AGN Central 2 gas zone, average consumption households on the worst standing offer can save approximately $1,030 per annum if switching to the best published market offer. AGL is the retailer with the best market offer rates in this gas zone.

CHART 28 | AGN Central 2/Tru East gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum47

Figure 9 below shows estimated annual bills for gas market offers post discounts in the AGN Central 2 gas zone. The difference between the best (AGL) and the worst (Click Energy) is approximately $420 per annum.

FIGURE 9 | AGN Central 2/Tru East gas zone: Lowest to highest annual bills (incl. GST)48

47 Discounts have been applied to consumption and/or total bill as per offers listed in the table 2.48 These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020 and it must be noted that retailers may change their rates at any time.

1st Energy $1,553

Lumo Energy $1,563




DC Power Co $1,600

Amaysim $1,615


CovaU $1,688

Kogan Energy $1,709

Click Energy $1,758

AGL $1,340

GloBird $1,436Dodo Power & Gas $1,453

Sumo Power $1,468


Red Energy $1,520

Powershop $1,552

$800

$1,000$1,200

$1,400$1,600

$1,800

$2,000$2,200

$2,400

$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

Dodo Pow

er & Gas

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

rgy

Kogan E

nergy

$ pe

r ann

um

Retail offers on AGN Central 2 gas zone



AGN Central 1/Origin South East Gas ZoneIn the AGN Central 1 gas zone, average consumption households on the worst standing offer can save approximately $995 per annum if switching to the best published market offer. AGL is the retailer with the best market offer rates in this gas zone.

CHART 29 | AGN Central 1/Origin South East gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum49

Figure 10 below shows estimated annual bills for gas market offers post discounts in the AGN Central 1 gas zone. The difference between the best (AGL) and the worst (Click Energy) is approximately $380 per annum.

FIGURE 10 | AGN Central 1/Origin South East gas zone: Lowest to highest annual bills (incl. GST)50


1st Energy $1,553

Lumo Energy $1,555




DC Power Co $1,600

Amaysim $1,615


CovaU $1,688

Kogan Energy $1,709

Click Energy $1,758

AGL $1,380

GloBird $1,436Dodo Power & Gas $1,453


Sumo Power $1,491

Red Energy $1,520

Powershop $1,552

$800

$1,000$1,200

$1,400$1,600

$1,800

$2,000$2,200

$2,400

$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

Dodo Pow

er & Gas

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

rgy

Kogan E

nergy

$ pe

r ann

um

Retail offers in AGN Central 1 gas zone



Ausnet West/Tru West Gas ZoneIn the Ausnet West gas zone, average consumption households on the worst standing offer can save approximately $920 per annum if switching to the best published market offer. GloBird Energy is the retailer with the best market offer rates in this gas zone.

CHART 30 | Ausnet West/Tru West gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum51

Figure 11 below shows estimated annual bills for gas market offers post discounts in the Ausnet West gas zone. The difference between the best (GloBird Energy) and the worst (Click Energy) is approximately $345 per annum.

FIGURE 11 | Ausnet West/Tru West gas zone: Lowest to highest annual bills (incl. GST)52


Lumo Energy $1,432


Kogan Energy $1,437

DC Power Co $1,441

1st Energy $1,448


Amaysim $1,512

Red Energy $1,555

CovaU $1,557

Click Energy $1,645

GloBird $1,301

AGL $1,320

Sumo Power $1,390

Powershop $1,407




$800

$1,000$1,200

$1,400

$1,600$1,800

$2,000

$2,200$2,400

$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

rgy

Kogan E

nergy

$ pe

r ann

um

Retail offers in Ausnet West gas zone



Ausnet Central 2/AGL North Gas ZoneIn the Ausnet Central 2 gas zone, average consumption households on the worst standing offer can save approximately $910 per annum if switching to the best published market offer. GloBird Energy is the retailer with the best market offer rates in this gas zone.

CHART 26 | Ausnet Central 2/AGL North gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum53

Figure 12 below shows estimated annual bills for gas market offers post discounts in the Ausnet Central 2. The difference between the best (GloBird Energy) and the worst (CovaU) is approximately $350 per annum.

FIGURE 12 | Ausnet Central 2/AGL North gas zone: Lowest to highest annual bills (incl. GST)54


1st Energy $1,510



Kogan Energy $1,555

Red Energy $1,557

Amaysim $1,567




Click Energy $1,705

CovaU $1,743

GloBird $1,396

AGL $1,415

Powershop $1,440

DC Power Co $1,483


Lumo Energy $1,495

Sumo Power $1,504

$800

$1,000

$1,200$1,400

$1,600$1,800

$2,000

$2,200$2,400

$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

Dodo Pow

er & Gas

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

rgy

Kogan E

nergy

$ pe

r ann

um

Retail offers in Ausnet Central 2 gas zone



Ausnet Central 1/Tru Central Gas ZoneIn the Ausnet Central 1 gas zone, average consumption households on the worst standing offer can save approximately $910 per annum if switching to the best published market offer. GloBird Energy is again the retailer with the best market offer rates in this gas zone.

CHART 32 | Ausnet Central 1/Tru Central gas zone: Estimated annual bills (incl. GST) for gas standing and market offers January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum55

Figure 13 below shows estimated annual bills for gas market offers post discounts in the Ausnet Central 1 gas zone. The difference between the best (GloBird Energy) and the worst (CovaU) is approximately $350 per annum.

FIGURE 13 | Ausnet Central 1/Tru Central gas zone: Lowest to highest annual bills (incl. GST)56


1st Energy $1,510



Kogan Energy $1,555

Red Energy $1,557

Amaysim $1,567




Click Energy $1,705

CovaU $1,743

GloBird $1,396

AGL $1,421

Powershop $1,440

Sumo Power $1,453

DC Power Co $1,483


Lumo Energy $1,510

$800

$1,000$1,200

$1,400$1,600

$1,800

$2,000$2,200

$2,400

$2,600

AGL

Alinta E

nergy

Click Energ

yCovau

Dodo Pow

er & Gas

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum Energy

Origin Ener

gy

Red Energ

y

Simply E

nergy

Sumo Pow

er

Amaysim

GloBird

Powersho

p

DC Power

Co

1st Ene

rgy

Kogan E

nergy

$ pe

r ann

um

Retail offers in Ausnet Central 1 gas zone



2.2.2. Changes to gas market offers

While some retailers did not change their gas market offers in January 2020, some decreased their rates while others increased theirs. EnergyAustralia and Momentum Energy are the retailers with the greatest price increases while AGL, Alinta Energy, CovaU and Simply Energy had the greatest price decreases. Charts 33 – 40 below show retailers market offers (as annual bills) as of July 2019 and January 2020, as well as percentage changes, for each gas zone.

CHART 33 | Multinet 1 gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

CHART 34 | Multinet 2 gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

$0

$200

$400$600

$800$1,000

$1,200

$1,400$1,600

$1,800$2,000

AGL

Alinta E

nergy

Click En

ergy

Covau

Dodo Po

wer & G

as

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

um

Multinet Metro 1

Jul-19 Jan-20

$0

$200$400

$600$800

$1,000

$1,200$1,400

$1,600$1,800

$2,000

AGL

Alinta E

nergy

Click En

ergy

Covau

Dodo Po

wer & G

as

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

um

Multinet Metro 2

Jul-19 Jan-20


CHART 35 | AGN North gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

CHART 36 | AGN Central 2 gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

$0$200

$400$600

$800

$1,000$1,200

$1,400$1,600

$1,800

$2,000

AGL

Alinta E

nergy

Click En

ergy

Covau

Dodo Po

wer & G

as

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

umAGN North

Jul-19 Jan-20

$0$200

$400$600

$800

$1,000$1,200

$1,400$1,600

$1,800

$2,000

AGL

Alinta E

nergy

Click En

ergy

Covau

Dodo Po

wer & G

as

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

um

AGN Central 2

Jul-19 Jan-20


CHART 37 | AGN Central 1 gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

CHART 38 | Ausnet West gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

$0

$200$400

$600$800

$1,000

$1,200$1,400

$1,600$1,800

$2,000

AGL

Alinta E

nergy

Click En

ergy

Covau

Dodo Po

wer & G

as

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

umAGN Central 1

Jul-19 Jan-20

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

AGL

Alinta E

nergy

Click En

ergy

Covau

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

um

Ausnet Services West

Jul-19 Jan-20


CHART 39 | Ausnet Central 2 gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

CHART 40 | Ausnet Central 1 gas zone: Changes to annual bills for gas market offers from July 2019 to January 2020, including discounts and pay on time discounts - Households consuming 63,000 Mj per annum, incl. GST

$0

$200$400

$600

$800$1,000

$1,200$1,400

$1,600

$1,800$2,000

AGL

Alinta E

nergy

Click En

ergy

Covau

Dodo Po

wer & G

as

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

um

Ausnet Services Central 2

Jul-19 Jan-20

$0

$200

$400$600

$800$1,000

$1,200

$1,400$1,600

$1,800

$2,000

AGL

Alinta E

nergy

Click En

ergy

Covau

Dodo Po

wer & G

as

EnergyA

ustral

ia

Lumo E

nergy

Momen

tum En

ergy

Origin

Energ

y

Red En

ergy

Simply

Energ

y

Sumo P

ower

Amaysim

GloBird

Energ

y

Powers

hop

DC Power

Co

$ pe

r ann

um

Ausnet Services Central 1

Jul-19 Jan-20


2.3 Solar market offers January 2020

• The maximum price-spread is around $424 in Ausnet, $375 in Jemena, $340 in Powercor, $390 in United Energy and $325 in Citipower.57

• Depending on network area, Melbourne solar customers with a 3kW system installed would on average pay between $860 and $940 less per annum compared to non-solar households.58

• Non-metropolitan households would on average pay between $990 and $1,095 less per annum compared to non-solar households.59

While many solar customers currently receive a solar feed in rate (FIT) of 60 cents (the premium FIT scheme), this scheme is closed to new entrants and new solar customers should therefore carefully assess both the retailers’ FIT rates as well as the cost of electricity imported when choosing a solar offer.60

This section analyses and compares market offer bills for Victorian customers with 1.5 kW and 3 kW systems installed. As retailers are not required to publish rates for solar products purchased and installed through them, this analysis only examines electricity offers available to customers independently of solar panels and installation.

Methodology and assumptionsTo calculate the annual bills for the various solar market offers the following assumptions and methodology have been applied:

• An annual household consumption of 4,800 kWh (including both produced and imported).

• Calculations have been produced for households with 1.5 kW and 3 kW systems only.

• For Melbourne households, an annual generation capacity per kW installed of 1.539 MWh and an export rate of 47.4% for 3 kW systems and 14.9% for 1.5 kW systems.61

• For non-metropolitan households, an annual generation capacity per kW installed of 1.789 MWh and an export rate of 54.8% for 3 kW systems and 26.8% for 1.5 kW systems.62

• Only FIT rates available to new customers have been included. Retailer funded FIT rates have been applied as per offer (see table 4 below).

• A flat annual consumption has been assumed.• The annual bills have been based on quarterly bill calculations and all step increases

have been applied as quarterly thresholds (including when the retail offer refers to daily or monthly thresholds). Daily fixed charges have been multiplied by 91 to calculate the quarterly amount.

57 Based on households using 4,800 kWh per annum, single rate metering and a 3 kW system installed. Calculations include discounts off usage or bill as well as pay on time discounts off usage or bill. Note CovaU does not have an offer in the Ausnet network.58 Ibid.59 Ibid.60 Approximately 88,000 households, small businesses and community groups are on the PFIT scheme and the 60 cents rate is set to last until 2024 see http://delwp.vic.gov.au/energy/electricity/victorian-feed-in-tariff/closed-feed-in-tariff-schemes/premium-feed-in-tariff.61 These figures are based analysis presented in a report for the Alternative Technology Association (ATA), Alviss Consulting, Retail Offers and Market Transparency for New Solar Customers, June 2013.62 Ibid.

http://delwp.vic.gov.au/energy/electricity/victorian-feed-in-tariff/closed-feed-in-tariff-schemes/premium-feed-in-tariff

http://delwp.vic.gov.au/energy/electricity/victorian-feed-in-tariff/closed-feed-in-tariff-schemes/premium-feed-in-tariff


TABLE 4 | Retailers’ FIT ratesRetailer Offer FIT rate (c/kWh)AGL Essentials Savers 12

Alinta Energy Home Deal 12

Click Energy Hibiscus Solar 13

Commander Market offer 12

Diamond Energy Pay on time discount 12

Dodo Power & Gas Market offer 12

EnergyAustralia Total Plan Home 12

GloBird Energy VicSave 12

Lumo Energy Value 12

Momentum Energy Solar Step Up 13.5

Origin Energy Solar Optimiser 15

Tango Energy Home Select 12

Powerdirect Rate Saver 12

Powershop Shopper with Mega Pack 12

Red Energy63 Living Energy Saver 12

Simply Energy Plus 12

Sumo Power Select 12

Amaysim Classic Solar 13

CovaU Smart Saver Solar 12

1st Energy 1st Saver 12

DC Power Co Market offer 15

Powerclub Powerbank Home 12

Amber Electric Market offer 12

EnergyLocals Online Saver 12

Kogan Energy Solar market offer 12

Chart 41 below compares annual retail bills for solar customers in Melbourne (Citipower) with 3 kW and 1.5 kW installed. It shows that for this consumption level, the average market offer bill for households in this area with a 3kW system installed is $660 and that is $860 less than the average market offer bill for non-solar customers (see chart 14 in section 2.1.1 above). Households with a 1.5 kW system installed will typically have an annual bill of $1,020.

Melbourne (Citipower) solar customers with 3 kW systems (and this consumption level) would be approximately $325 per annum better off on Powerclub’s offer compared to CovaU’s.

Chart 41 also shows that Click Energy, DC Power Co, Origin Energy and Amaysim’s offers produce annual bills that are above the average for 1.5 kW systems despite having some of the highest FIT rates (13, 15, 15 and 13 c/kWh respectively). This highlights the importance of solar customers not choosing retail offers based on FIT rates alone.

63 Note that Red Energy does not have a FIT rate for its Living Energy Saver market offer in the Ausnet network (single rate).


CHART 41 | Annual bills including discounts and FIT credits for Melbourne/Citipower customers with 3 kW and 1.5 kW solar systems. Electricity offers in January 2020 as annual bills, Single rate, 4,800 kWh (incl. GST).64

Chart 42 below shows annual bills for Melbourne solar customers in the Jemena network. It shows that for this consumption level, the average market offer bill for households in this area with a 3kW system installed is $690 and that is $915 less than the average market offer bill for non-solar customers (see chart 17 in section 2.1.1 above). Households with a 1.5 kW system installed will have an annual bill of $1,060.

CHART 42 | Annual bills including discounts and FIT credits for Melbourne/Jemena customers with 3 kW and 1.5 kW solar systems. Electricity offers in January 2020 as annual bills, Single rate, 4,800 kWh (incl. GST).65

Chart 43 below shows annual bills for Melbourne solar customers in the United Energy network. It shows that for this consumption level, the average market offer bill for households in this area with a 3kW system installed is $640 and that is $940 less than the average market offer bill for non-solar customers (see chart 18 in section 2.1.1 above). Households with a 1.5 kW system installed will have an annual bill of $1,045. 64 Bill calculations include guaranteed and pay on time discounts off usage and/or bill.65 Ibid.

$100

$300

$500

$700

$900

$1,100

$1,300

$1,500

AGL

Alint

a En

ergy

Clic

k En

ergy

Com

man

der

Diam

ond

Ener

gyDo

do P

ower

& G

asEn

ergy

Aust

ralia

Glo

Bird

Ene

rgy

Lum

o En

ergy

Mom

entu

m E

nerg

yO

rigin

Ene

rgy

Tang

o En

ergy

Pow

erdi

rect

Pow

ersh

opRe

d En

ergy

Sim

ply

Ener

gySu

mo

Pow

erAm

aysi

mCo

vaU

1st E

nerg

yDC

Pow

er C

oPo

wer

club

Ambe

r Elec

tric

Ener

gLoc

alaKo

gan

Ener

gy

$ pe

r ann

um

3 kW 1.5 kW 3 kW average 1.5 kW average

$100

$300

$500

$700

$900

$1,100

$1,300

$1,500

AGL

Alint

a En

ergy

Clic

k En

ergy

Com

man

der

Diam

ond

Ener

gyDo

do P

ower

& G

asEn

ergy

Aust

ralia

Glo

Bird

Ene

rgy

Lum

o En

ergy

Mom

entu

m E

nerg

yO

rigin

Ene

rgy

Tang

o En

ergy

Pow

erdi

rect

Pow

ersh

opRe

d En

ergy

Sim

ply

Ener

gySu

mo

Pow

erAm

aysi

mCo

vaU

1st E

nerg

yDC

Pow

er C

oPo

wer

club

Ambe

r Elec

tric

Ener

gyLo

cals

Koga

n En

ergy

$ pe

r ann

um



CHART 43 | Annual bills including discounts and FIT credits for Melbourne/United Energy customers with 3 kW and 1.5 kW solar systems. Electricity offers in January 2020 as annual bills, Single rate, 4,800 kWh (incl. GST).66

Homes outside Melbourne’s metropolitan area will typically have less overshadowing and therefore a higher generation capacity and export rate. Chart 44 compares annual retail bills for non-metropolitan solar customers with 3 kW systems in four network areas (Jemena, United, Powercor and Ausnet). It shows that the average annual bill for non-metropolitan solar customers with this consumption level is approximately $590 in Jemena, $570 in United, $635 in Powercor and $690 in Ausnet. The average annual bill is $990 to $1,095 lower than the annual bill for non-solar customers (see section 2.1.1 above for non-solar customers).

CHART 44 | Annual bills including discounts and FIT credits for non-metropolitan customers in Jemena, United Energy, Powercor and Ausnet with 3 kW solar systems. Electricity offers in January 2020 as annual bills, Single rate, 4,800 kWh (incl. GST)67

Figures 14 - 18 below show estimated annual bills for solar market offers including FIT and discounts for Melbourne customers in Citipower, Jemena and United Energy’s networks

66 Bill calculations include guaranteed and pay on time discounts off usage and/or bill.67 Bill calculations include guaranteed and pay on time discounts off usage and/or bill.

$100

$300

$500

$700

$900

$1,100

$1,300

$1,500

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$200

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and non-metropolitan customers in the Powercor and Ausnet networks (all based on 3 kW systems).68 The maximum price-spread is around $424 in Ausnet, $375 in Jemena, $340 in Powercor, $390 in United Energy and $325 in Citipower.

68 These bill estimates are based on rates that were collected from the retailers’ websites between 9 January 2020 and 14 January 2020. Bill calculations include guaranteed discounts and pay on time discount but any additional discounts for customers choosing to pay by direct debit are not included. Annual consumption of 4,800 kWh annum (including both produced and imported), single rate, and GST inclusive. Note that Tango Energy was formerly known as Pacific Hydro.

FIGURE 14 | Lowest to highest annual bills for solar market offers (inc GST) in Citipower network

Powerclub $572

Alinta Energy $582

Tango Energy $595

AGL $618

Powerdirect $618

Commander $619

Dodo Power & Gas $619

Amber Electric $623

Lumo Energy $641

Origin Energy $647

Simply Energy $648

Diamond Energy $648

EnergyAustralia $659

Sumo Power $659

1st Energy $659

Powershop $660

Momentum Energy $663

GloBird Energy $664

Kogan Energy $673

DC Power Co $681

EnergyLocals $684

Click Energy $695

Amaysim $695

Red Energy $715

CovaU $898

FIGURE 15 | Lowest to highest annual bills for solar market offers (inc GST) in Jemena network

Powerclub $581

Tango Energy $586

Alinta Energy $624

Amber Electric $639

Commander $639


AGL $647

Powerdirect $647

Diamond Energy $659

Lumo Energy $666

Simply Energy $672

Origin Energy $659

1st Energy $684

Kogan Energy $686


Sumo Power $689


EnergyLocals $698

Powershop $701

Click Energy $727

Amaysim $727

Red Energy $746

GloBird Energy $751

DC Power Co $762

CovaU $955

FIGURE 16 | Lowest to highest annual bills for solar market offers (inc GST) in United Energy network

Tango Energy $563

Powerclub $569

Commander $610Dodo Power & Gas $610

Amber Eletric $614

AGL $617

Powerdirect $617

Alinta Energy $621

Lumo Energy $628

Diamond Energy $639

Powershop $654

Simply Energy $658

EnergyLocals $664

Origin Energy $669

1st Energy $671


Sumo Power $679


Kogan Energy $699

Click Energy $717

Amaysim $717

DC Power Co $724

Red Energy $736

GloBird Energy $741

CovaU $953


FIGURE 17 | Lowest to highest annual bills for solar market offers (inc GST) in Powercor network

Amber Electric $589

Tango Energy $546

Powerclub $554

Alinta Energy $576

AGL $590

Powerdirect $590

Commander $591


Diamond Energy $596

Origin Energy $601

Lumo Energy $613

Simply Energy $623



Sumo Power $633

1st Energy $635

Click Energy $666

Amaysim $666

Powershop $669

DC Power Co $673

GloBird Energy $698

Red Energy $701

CovaU $884

FIGURE 18 | Lowest to highest annual bills for solar market offers (inc GST) in Ausnet network

Powerclub $595

Tango Energy $598

AGL $619

Powerdirect $619

Alinta Energy $637

Commander $640


Amber Electric $645

Origin Energy $660

Simply Energy $669

Lumo Energy $670

Diamond Energy $674

1st Energy $683



Sumo Power $688

Kogan Energy $713

Powershop $715

Click Energy $725

Amaysim $727

EnergyLocals $728

DC Power Co $736

GloBird Energy $758

CovaU $1,019

EnergyLocals $671

Kogan Energy $677


3. ELECTRICITY NETWORK CHARGESElectricity bills are made up of several components, including generation (wholesale market) costs, network costs (distribution and transmission), “green schemes” and costs associated with other public policy initiatives, and retail costs. The Victorian electricity networks introduce new Network Use of System (NUOS) charges as of 1 January every year. These NUOS charges comprise Transmission Use of System (TUOS) and Distribution Use of System (DUOS). Both the regulator and the retailers amend the retail tariffs to reflect these underlying changes to the NUOS.69

Chart 45 below shows that NUOS charges remained relatively stable from 2008 to 2010 and that the maximum difference to the annual NUOS charge (for this consumption level) was approximately $100. The maximum difference between networks is currently around $200 per annum. From July 2011 to July 2013 the NUOS charges increased in all of Victoria’s electricity network but since then there have been some increases and some decreases, depending on the network area. In January 2020, the NUOS increased in all network areas.

CHART 45 | NUOS charges from 2008 to 2020 as estimated annual cost (GST exclusive) for households using 4,800 kWh per annum, single rate70

Chart 46 below looks at NUOS charges as a proportion of total bill. It is based on the incumbent retailers’ standing offers as of July every year and the VDO as of July 2019. It shows that the NUOS proportion of electricity bills increased significantly with the introduction of the VDO.

69 Note that NUOS charges do not include smart metering costs. 70 The annual NUOS charges have been calculated by allocating 1,200 kWh per quarter (again based on annual consumption of 4,800 kWh) to the step charges stipulated in the NUOS. The annual NUOS cost also includes fixed charges. Note that as United Energy’s NUOS charge has been a seasonal tariff over the last four years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate.

0

100

200

300

400

500

600

700

800

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

NU

OS

Cha

rges

($) p

er a

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Cit ipower Powercor Ausnet Jemena United Energy


CHART 46 | NUOS charges (excl. GST) from July 2008 to January 2020 as proportion (%) of annual retail bill (incl. GST) for electricity regulated/standing offers/VDO, 4,800 kWh per annum, single rate71

For market offers, the NUOS proportion varies significantly between retailers. On average (across all retailers’ market offers), the NUOS proportion of the total bill is 38% in Ausnet, 32% in Powercor, 29% in Citipower and 30% in Jemena and United Energy.72 That is slightly higher proportions compared to the VDO.

Charts 47 – 51 below show the NUOS proportion of bills for market offers post January 2020 in each of the five network areas. It shows that bills from CovaU and DC Power Co consistently have the lowest NUOS proportion (ranging from 24% to 33%) while Tango Energy’s bill in the Ausnet network has the single highest NUOS proportion at 43%.

CHART 47 | Citipower network - NUOS charges (excl. GST) as proportion (%) of annual retail bill (incl. GST) for electricity market offers (including guaranteed and pay on time discounts) post January 2020, 4,800 kWh per annum, single rate

71 The standing offer bill is based on the average incumbent (AGL, Origin Energy and EnergyAustralia) standing offer as of July every year (VDO after July 2019). Note that as United Energy’s NUOS charge has been a seasonal tariff over the last three years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate.72 Based on market offers inclusive of guaranteed and pay on time discounts, annual consumption of 4,800 kWh on the single rate tariff.

0%

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40%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

NU

OS

as p

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(%) o

f bill

Cit ipower Powercor Ausnet Jemena United Energy

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CHART 48 | Powercor network - NUOS charges (excl GST) as proportion (%) of annual retail bill (incl. GST) for electricity market offers (including guaranteed and pay on time discounts) post January 2020, 4,800 kWh per annum, single rate

CHART 49 | Ausnet network - NUOS charges (excl GST) as proportion (%) of annual retail bill (incl. GST) for electricity market offers (including guaranteed and pay on time discounts) post January 2020, 4,800 kWh per annum, single rate

0%

5%

10%

15%

20%

25%

30%

35%

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DC P

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45%

DC P

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Cova

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CHART 50 | Jemena network - NUOS charges (excl GST) as proportion (%) of annual retail bill (incl. GST) for electricity market offers (including guaranteed and pay on time discounts) post January 2020, 4,800 kWh per annum, single rate

CHART 51 | United Energy network - NUOS charges (excl GST) as proportion (%) of annual retail bill (incl. GST) for electricity market offers (including guaranteed and pay on time discounts) post January 2020, 4,800 kWh per annum, single rate

0%

5%

10%

15%

20%

25%

30%

35%

40%

DC P

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4. COMPARING ALL MARKET OFFERSThis section compares all published electricity and gas market offers as of January 2020. As such it includes offers with various conditions such as direct debit payments, membership of sports clubs or frequent flyer programs, as well as other conditions.73

Twenty-five retailers offer 54 electricity market offers in the Citipower network. Chart 52 below shows these offers as annual bills inclusive of all discounts as well as additional incentives.74 It shows that the maximum difference to annual bills is approximately $365 for this consumption level. In January 2019, the price spread was $800 for this consumption level.

A household on CovaU’s Smart Saver offer would pay around $1,748 for 12 months of supply while a household on Tango Energy’s Home Select offer would pay $1,384 over the same period. In January 2020, the average mean electricity market offer bill is $1,535 in the Citipower network. Whereas the price spread has significantly reduced compared to January 2019, the average mean market offer bill has increased. In January 2019, the average mean market offer bill was $1,467.

Table 4 below outlines the conditions attached to these market offers as well as the type of discounts they offer.75 Twelve of the 54 offers require payment by direct debit. Only four of the offers have guaranteed (non-conditional) discounts while twelve of the offers have conditional pay on time discount. We have been registering that monthly billing is becoming an increasingly common feature of market offers and forty-three of the offers in table 4 require customers to pay monthly instead of quarterly.

73 The standard analysis of market offers in the Tariff-Tracking reports do not include offers where the customer is required to pay by direct debit or be a member of a program/organisation. It also only includes one offer for each retailer.74 All discounts (guaranteed, pay on time, direct debit, e-billing and dual fuel) have been included as per retail offer. Only incentives that can readily be given a monetary value (for the first 12 months of a contract) have been included. For example, the monetary value of earning frequent flyer points have not been included.75 All additional incentives listed as monetary values have been included in the bill calculations.


CHART 52 | Electricity market offers in Citipower network as annual bills, 4,800 kWh/annum, single rate including all discounts and additional incentives, January 2020 (incl. GST)

$- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000

Tango Energy | Home Select Alinta Energy | Home Deal

Diamond Energy | Renewable Saver with direct debit Powerclub | Powerbank Home

Kogan Energy | Market offer AGL | Seniors Plus

Commander | Market offer Dodo Power & Gas | Market offer

AGL | Essentials Saver Powerdirect | Rate Saver

EnergyLocals | Online Saver Simply Energy | Plus Simply Energy | Stay Simply Energy | AFL

Powershop | Shopper with Mega Pack Momentum Energy | Geelong Cats

AGL | Essentials Momentum Energy | Self Serve

Diamond Energy | Renewable Saver with pay-on-time discount 1st Energy | 1st Saver

Lumo Energy | Value GloBird Energy | VicSave with direct debit

Alinta Energy | Sports Pack GloBird Energy | VicSave

Click Energy | Hibiscus Plus EnergyAustralia | Total Plan Home

Sumo Power | Select Momentum Energy | SmilePower Flexi

Momentum Energy | Move Mate Lumo Energy | Movers

Origin Energy | Max Saver Amber Electric | Market offer

EnergyAustralia | No fri lls Lumo Energy | Basic

EnergyLocals | Local Saver Click Energy | Hibiscus

Powershop | Lite Origin Energy | Flexi

Red Energy | Living Energy Saver Red Energy | Qantas Red Saver

Sumo Power | Saver GloBird Energy | EasySave

Amaysim | Classic Electricity GloBird Energy | GloSave with direct debit

VDO EnergyAustralia | Basic

Origin Energy | Basic Sumo Power | Lite

GloBird Energy | GloSave Tango Energy | Blue

CovaU | Smart Saver with direct debit DC Power Co | Market offer

Red Energy | Qantas Red Plus CovaU | Smart Saver

$ per annum

Reta

iler |

Mar

ket o

ffer


Retailer Offer Bill

Dire

ct D

ebit

only

E-bi

lling

onl

y

Mon

thly

bill

ing

Mem

bers

hip

Gua

rant

eed

disc

ount

Pay-

on-t

ime

disc

ount

Dire

ct d

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disc

ount

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disc

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Fixe

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er in

cent

ives

Appr

ox. i

ncen

tive

valu

e ($

)

CovaU Smart Saver $1,748

Red Energy Qantas Red Plus $1,746

DC Power Co Market offer $1,733

CovaU Smart Saver with direct debit $1,674

Tango Energy Blue $1,658 (12 months)

GloBird Energy GloSave $1,634

Sumo Power Lite $1,626 (12 months)

Origin Energy Basic $1,620

EnergyAustralia Basic $1,620

GloBird Energy GloSave with direct debit $1,617

Amaysim Classic Electricity $1,604

GloBird Energy EasySave $1,599

Sumo Power Saver $1,582 $40

Red Energy Qantas Red Saver $1,571

Red Energy Living Energy Saver $1,571

Origin Energy Flexi $1,571

Powershop Lite $1,557

Click Energy Hibiscus $1,555

EnergyLocals Local Saver $1,551

Lumo Energy Basic $1,545

EnergyAustralia No frills $1,542 (12 months)

Amber Electric Market offer $1,540

Origin Energy Max Saver $1,539

Lumo Energy Movers $1,534

Momentum Energy Move Mate $1,532 $50

Momentum Energy SmilePower Flexi $1,532 $50

Sumo Power Select $1,523

EnergyAustralia Total Plan Home $1,523 (12 months)

Click Energy Hibiscus Plus $1,523

GloBird Energy VicSave $1,518

Alinta Energy Sports Pack $1,518

GloBird Energy VicSave with direct debit $1,507

Lumo Energy Value $1,499

1st Energy 1st Saver $1,498

TABLE 5 | Conditions and features of electricity market offers in Citipower network, January 2020


Retailer Offer Bill

Dire

ct D

ebit

only

E-bi

lling

onl

y

Mon

thly

bill

ing

Mem

bers

hip

Gua

rant

eed

disc

ount

Pay-

on-t

ime

disc

ount

Dire

ct d

ebit

disc

ount

E-bi

ll/on

line

disc

ount

Dua

l fue

l dis

coun

t

Fixe

d ra

tes

Oth

er in

cent

ives

Appr

ox. i

ncen

tive

valu

e ($

)

Diamond Energy Renewable Saver with pay-on-time discount $1,497

Momentum Energy Self Serve $1,494 $50

AGL Essentials $1,490 (12 months)

Momentum Energy Geelong Cats $1,485 $50

Powershop Shopper with Mega Pack $1,481

Simply Energy AFL $1,477 $75

Simply Energy Stay $1,475

Simply Energy Plus $1,475

EnergyLocals Online Saver $1,464 $84

Powerdirect Rate Saver $1,458 (12 months)

AGL Essentials Saver $1,458

Dodo Power & Gas Market offer $1,446

Commander Market offer $1,446

AGL Seniors Plus $1,430 $25

Kogan Energy Market offer $1,419

Powerclub Powerbank Home $1,409

Diamond Energy Renewable Saver with direct debit $1,400

Alinta Energy Home Deal $1,392

Tango Energy Home Select $1,384 (12 months)

In relation to gas, eighteen retailers offer 43 gas market offers in the Multinet 1/Origin central gas zone. Chart 53 below shows these offers as annual bills inclusive of all discounts as well as additional incentives.76 It shows that the maximum difference to annual bills is approximately $630 for this consumption level. In January 2019, the price spread was $770 for this consumption level. A household on AGL Seniors Plus offer would pay around $1,350 for 12 months of supply while a household on EnergyAustralia’s Basic would pay $1,980 over a 12 month period.77 The average mean market offer bill is $1,540, slightly higher than in January 2019 ($1,523). Table 5 below outlines the conditions attached to these market offers as well as the type of discounts they offer.78 Eight of the 43 offers require payment by direct debit, only five of the offers have guaranteed (non-conditional) discounts while thirteen of the offers have a conditional pay on time discount.

76 All discounts (guaranteed, pay on time, direct debit, e-billing and dual fuel) have been included as per retail offer. Only incentives that can readily be given a monetary value (for the first 12 months of a contract) have been included. For example, the monetary value of earning frequent flyer points have not been included. 77 Note that the AGL Seniors Plus offer is only available for customers with a valid Victorian Seniors Card.78 All discounts (guaranteed, pay on time, direct debit, e-billing and dual fuel) have been included as per retail offer. Only incentives that can readily be given a monetary value (for the first 12 months of a contract) have been included. For example, the monetary value of earning frequent flyer points have not been included.


CHART 53 | Gas market offers in the Multinet 1 gas zone as annual bills, 63,000 Mj/annum including all discounts and additional incentives, January 2020

$0 $500 $1,000 $1,500 $2,000 $2,500

AGL | Seniors Plus AGL | Essentials Saver

Dodo Power & Gas | Market offer AGL | Essentials

GloBird Energy | Easy Save GloBird Energy | GloSave with direct debit

Powershop | Shopper with Gas Saver Sumo Power | Select

GloBird Energy | GloSave Momentum Energy | Self Serve

1st Energy | 1st Saver EnergyAustralia | Total Plan

Powershop | Lite Lumo Energy | Value Sumo Power | Saver

Origin Energy | Max Saver Red Energy | Qantas Red Saver

Red Energy | Living Energy Saver DC Power Co | Market offer

Alinta Energy | Home Deal Simply Energy | Choice Lumo Energy | Movers

Lumo Energy | Basic Origin Energy | Flexi

Sumo Power | Lite Simply Energy | Plus Simply Energy | Stay

Amaysim | Gas as you go Origin Energy | Freedom

Simply Energy | AFL Momentum Energy | Market offer Momentum Energy | Move Mate

Alinta Energy | Sports Pack Kogan Energy | Market offer

EnergyAustralia | No fri lls Click Energy | Banksia Plus

Click Energy | Hibiscus Plus Covau | Smart Saver with direct debit

Red Energy | Qantas Red Plus Click Energy | Hibiscus

Origin Energy | Basic Covau | Smart Saver

EnergyAustralia | Basic

$ per annum

Reta

iler |

Mar

ket o

ffer


TABLE 6 | Conditions and features of gas market offers in Multinet 1/Origin Metro gas zone, January 2020

Retailer Offer Bill

Dire

ct D

ebit

only

E-bi

lling

onl

y

Mon

thly

bill

ing

Mem

bers

hip

Gua

rant

eed

disc

ount

Pay-

on-t

ime

disc

ount

Dire

ct d

ebit

disc

ount

E-bi

ll/on

line

disc

ount

Dua

l fue

l dis

coun

t

Fixe

d ra

tes

Oth

er in

cent

ives

Appr

ox. i

ncen

tive

valu

e ($

)

EnergyAustralia Basic $1,980

CovaU Smart Saver $1,724

Origin Energy Basic $1,697

Click Energy Hibiscus $1,687

Red Energy Qantas Red Plus $1,663

CovaU Smart Saver with direct debit $1,649

Click Energy Hibiscus Plus $1,641

Click Energy Banksia Plus $1,641

EnergyAustralia No frills $1,639 (12 months)

Kogan Energy Market offer $1,624

Alinta Energy Sports Pack $1,592

Momentum Energy Move Mate $1,591 $50

Momentum Energy Market offer $1,591 $50

Simply Energy AFL $1,584 $75

Origin Energy Freedom $1,578

Amaysim Gas as you go $1,550

Simply Energy Stay $1,543

Simply Energy Plus $1,543

Sumo Power Lite $1,531

Origin Energy Flexi $1,527

Lumo Energy Basic $1,525

Lumo Energy Movers $1,515

Simply Energy Choice $1,508

Alinta Energy Home Deal $1,505

DC Power Co Market offer $1,499

Red Energy Living Energy Saver $1,496

Red Energy Qantas Red Saver $1,496

Origin Energy Max Saver $1,493

Sumo Power Saver $1,487 $30

Lumo Energy Value $1,480

Powershop Lite $1,479

EnergyAustralia Total Plan $1,477 (12 months)

1st Energy 1st Saver $1,475


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Momentum Energy Self Serve $1,466

Globird Energy GloSave $1,455

Sumo Power Select $1,455

Powershop Shopper with Gas Saver $1,452

Globird Energy GloSaver with direct debit $1,440

Globird Energy Easy Save $1,417

AGL Essentials $1,409 (12 months)

Dodo Power & Gas Market offer $1,398

AGL Essentials Saver $1,378

AGL Seniors Plus $1,350 $25


5. TOTAL COST OF ENERGY AND PRICE CHANGES BY AREAAs approximately 60% of Victorian households are connected to both electricity and gas, it is important to analyse whether there are areas that have experienced high increases in both electricity and gas prices, and conversely, whether there are areas where the increases in electricity and gas prices are at the lower end. Such analysis allows for a more detailed understanding of the total energy costs faced by households across Victoria.79 The analysis presented in this section shows that the VDO has significantly reduced bills for standing offer customers across Victoria.

TABLE 7 | Electricity standing offer/VDO price changes (average) by area January 2019 to January 2020

Area Annual bill change since January 2019

Percentage change

Inner city and Eastern suburbs (Citipower) -$300 -16%

Outer Western suburbs and Western Victoria (Powercor) -$410 -$450* -19% -17%*

Outer Northern and Eastern suburbs and Eastern Victoria (SP Ausnet) -$335 -$330* -15% -12%*

Inner West and Northern suburbs (Jemena) -$370 -18%

Outer South Eastern suburbs and Mornington Peninsula (United Energy) -$280 -14%

* For all-electric households with peak/off-peak (controlled load) rates

TABLE 8 | Gas standing offer price changes (average) by area from January 2019 to January 2020

Area Annual bill change since January 2019

Percentage change

Eastern and South Eastern suburbs (Multinet 1/Origin Metro zone) $31 1.7%

Bayside and outer South Eastern suburbs (Multinet 2/AGL South zone) $31 1.7%

Northern and North Eastern Victoria (AGN North/Origin North zone) $33 1.8%

CBD, inner city and North Eastern suburbs(AGN Central 2/TRU East zone) $33 1.8%

Frankston, Mornington Peninsula and Gippsland (AGN Central 1/Origin South East zone) $32 1.7%

Macedon Ranges, Bendigo, Ballarat and Western Victoria (Ausnet West/TRU West zone) $25 1.5%

Western and North Western suburbs (Ausnet Central 2/AGL North zone) $21 1.1%

Outer Western suburbs, Geelong and Bellarine Peninsula (Ausnet Central 1/TRU Central zone) $21 1.1%

79 The figures in tables 6 - 9 are based on the incumbent retailers’ average standing offer for electricity and gas customers for dual fuel households using 4,800 kWh and 63,000 Mj per annum, and all-electric households using 7,000 kWh (thereof 30% off-peak). To calculate the change, we have used the average of the incumbent retailers’ standing offer rates as of January 2019 and January 2020 (the VDO for electricity) rather than the average of all standing offers. This was done because the vast majority of customers on the standing offer are with the incumbents (AGL, Origin Energy and EnergyAustralia). Furthermore, as discussed above, market offers do generally reflect the changes to the standing offers.


TABLE 9 | Average annual electricity bill by area. Based on the VDO/standing offers January 2020 Area Average annual billInner city and Eastern suburbs (Citipower) $1,620

Outer Western suburbs and Western Victoria (Powercor) $2,175* $2,620*

Outer Northern and Eastern suburbs and Eastern Victoria (Ausnet) $2,405* $2,220*

Inner West and Northern suburbs (Jemena) $1,715

Outer South Eastern suburbs and Mornington Peninsula (United Energy) $1,740

* For all-electric households with peak/off-peak (controlled load) rates

TABLE 10 | Average annual gas bill by area. Based on standing offers January 2020 Area Average annual billEastern and South Eastern suburbs (Multinet 1/Origin Metro zone) $1,845

Bayside and outer South Eastern suburbs (Multinet 2/AGL South zone) $1,845

Northern and North Eastern Victoria (AGN North/Origin North zone $1,890

CBD, inner city and North Eastern suburbs (AGN Central 2/TRU East zone) $1,860

Frankston, Mornington Peninsula and Gippsland (AGN Central 1/Origin South East zone) $1,875

Macedon Ranges, Bendigo, Ballarat and Western Victoria (Ausnet West/TRU West zone) $1,745

Western and North Western suburbs (Ausnet Central 2/AGL North zone) $1,855

Outer Western suburbs, Geelong and Bellarine Peninsula (Ausnet Central 1/TRU Central zone) $1,860

5.1 Inner city, inner North and Eastern suburbs

Dual fuel standing offer customers in Melbourne (CBD), Brunswick, Carlton, Fitzroy, Northcote, Richmond and Collingwood have the highest average annual combined energy bills in this area, at approximately $3,480.

In this area, the VDO has decreased bills by $300 for standing offer customers with an annual consumption of 4,800 kWh. Households in the AGN Central 2 gas zone (CBD and inner North) have experienced an increase in gas prices of approximately $30 over the same period.

• Households with an average consumption of electricity and gas in Melbourne (CBD), Brunswick, Carlton, Fitzroy, Northcote, Richmond and Collingwood will typically receive a decrease in energy costs of $265 compared to last year. last year.80

80 Citipower’s electricity distribution network and the AGN Central 2/TRU East gas zone.

Source: Citipower


• Households with an average consumption of electricity and gas in the inner Eastern suburbs of Kew, Hawthorn, Camberwell and Balwyn, and the inner South East areas of South Yarra, Prahran, Armadale, Toorak and Caulfield, will typically receive a decrease in energy costs of $265 compared to last year.81

• Households with an average consumption of electricity and gas in the inner city bay side suburbs of St Kilda, Port Melbourne, Albert Park and South Melbourne will typically receive a decrease in energy costs of $265 compared to last year.82

5.2 Inner West and North Western Suburbs

Dual fuel standing offer customers in this area have an average annual combined energy bill of approximately $3,575.

In this area, the VDO has decreased bills by $370 for standing offer customers with an annual consumption of 4,800 kWh. Households in the Ausnet Central 2 (Western and North Western suburbs) have experienced an increase in gas prices of approximately $20 over the same period.

• Households with an average consumption of electricity and gas in Footscray, Yarraville, Williamstown, Flemington, Moonee Ponds, Broadmeadows, Coolaroo, Braybrook and Sydenham will typically receive a decrease in energy costs of $345 compared to last year.83

• Households with an average consumption of electricity and gas in Heidelberg, Fairfield, Ivanhoe, Bundoora, Thomastown, Preston, Reservoir will typically receive a decrease in energy costs of $335 compared to last year.84

81 Citipower’s electricity distribution network and the Multinet 1/Origin Metro gas zone.82 Citipower’s electricity distribution network and the Multinet 2/AGL South gas zone.83 Jemena’s electricity distribution network and the Ausnet Central 2/AGL North gas zone. 84 Jemena’s electricity distribution network and the AGN Central 2/TRU East gas zone.

Source: Jemena


5.3 South Eastern suburbs and Mornington Peninsula

Dual fuel standing offer customers in the suburbs of Seaford and Frankston and on the Mornington Peninsula have the highest average annual combined energy bills in this area, at approximately $3,615.

In this area, the VDO has decreased bills by $280 for standing offer customers with an annual consumption of 4,800 kWh. Households in the AGN Central 1 gas zone (Mornington Peninsula and outer South Eastern suburbs) have experienced an increase in gas prices of $32 over the same period.

• Households with an average consumption of electricity and gas in the bayside suburbs of Elwood, Elsternwick, Brighton, Sandringham, Beaumaris, Chelsea and South Eastern Suburbs of Bentleigh, Moorabbin, Springvale, Noble Park, Keysborough will typically receive a decrease in energy costs of $250 compared to last year.85

• Households with an average consumption of electricity and gas in the suburbs of Seaford and Frankston and on the Mornington Peninsula will typically receive a decrease in energy costs of $250 compared to last year.86

• Households with an average consumption of electricity and gas in the Eastern suburbs of Bulleen, Templestowe, Box Hill, Doncaster, Mitcham, Vermont, Glen Waverly and Chadstone will typically receive a decrease in energy costs of $250 compared to last year.87

5.4 Outer Western suburbs and Western Victoria

Dual fuel standing offer customers in Northern Victorian towns such as Echuca, Shepparton and Heathcote have the highest average annual combined energy bills in this area, at approximately $3,615. For all-electric households, the average annual energy bill is of $2,175.

For all-electric households in this area, the VDO has decreased bills by $450 for standing offer customers with an annual consumption of 7,000 kWh.88 For dual fuel households the bills have decreased by approximately $410 over the last year (based on average consumption of 4,800 kWh).

Total energy cost decreases for dual fuel households in the Western region will typically amount to:

85 United Energy’s electricity distribution network and the Multinet 2/AGL South gas zone.86 United Energy’s electricity distribution network and the AGN Central 1/Origin South East gas zone.87 United Energy’s electricity distribution network and the Multinet 1/Origin Metro gas zone.88 Based on the average electricity standing offer for households taking controlled load off-peak (annual consumption of 7,000 kWh, 70% peak and 30% off-peak).

Source: United Energy


• $390 decrease for average consumption households in Hoppers Crossing, Werribee, Geelong region and on the Bellarine peninsula.89

• $385 decrease for average consumption households in Macedon, Kyneton, Ballarat, Colac, Warrnambool, Portland, Hamilton, Horsham, Ararat and Daylesford.90

• $375 decrease for average consumption households in Northern Victorian towns such as Echuca, Shepparton and Heathcote.91

5.5 Outer Northern and Eastern suburbs and Eastern Victoria

Dual fuel standing offer customers Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga have the highest average annual combined energy bills in this area, at approximately $3,795, the highest of all Victoria. For all-electric households, the average annual energy bill is of $2,405.

For all-electric households in this area, the VDO has decreased bills by $330 for standing offer customers with an annual consumption of 7,000 kWh.92 For dual fuel households the bills have decreased by approximately $335 over the last year (based on average consumption of 4,800 kWh). Total energy cost decreases for dual fuel households in the Eastern Victoria will typically amount to:

• $300 decrease for average consumption households in the Outer Northern and Eastern suburbs of Warrandyte, Ringwood, Chirnside Park and the area around Mount Dandenong.93

• $300 decrease for average consumption households in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga.94

• $300 decrease for average consumption households in the La Trobe Valley and Sale in the Gippsland region.95

89 Powercor’s electricity distribution network and Ausnet Central 1/TRU Central gas zone.90 Powercor’s electricity distribution network and the Ausnet West/TRU West gas zone.91 Powercor’s electricity distribution network and the AGN North/Origin North gas zone.92 Based on the average electricity standing offer for households taking controlled load off-peak (annual consumption of 7,000 kWh, 70% peak and 30% off-peak).93 Ausnet’s electricity distribution network and the Multinet 1/Origin Metro gas zone.94 Ausnet’s electricity distribution network and the AGN North/ Origin North gas zone.95 Ausnet’s electricity distribution network and the AGN Central 1/Origin South East gas zone.

Source: Powercor

Source: Ausnet

Victoria Energy Prices January 2020

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