Victorian electricity price changes kick in today: find out what it means for you

Victoria’s three largest energy retailers – AGL, Origin and EnergyAustralia – will change prices on their market plans today, with the majority of customers set to see a drop in their electricity bills.

Customers with Victoria’s largest electricity provider, AGL, will, on average, see their electricity bills drop by 4.1%, Origin prices will, on average, drop by 2% while Energy Australia customers will see average price rises by 0.4%.

Source: Canstar Average is across all tariff types. Excludes VDO plans, existing customers only. AGL changes based on price from same time last year. 

These moves follow changes to Victorian Default Offer plans, which began on 1 July, delivering a 5% decrease, on average, for the 17% of customers on the plans. 

New rule in place to address loyalty tax

A new energy rule came into play from July 1, requiring retailers in Victoria to check, at least once a year, that customers who have been on the same electricity plan for four or more years are paying a “reasonable price”. 

This change could see up to 53,000 electricity customers moved to cheaper plans, with a potential total saving of $12.2 million, according to the Essential Services Commission (ESC). 

Canstar's analysis of these figures puts the annual savings at $230 per customer.

Further rule changes to come into effect on October 1, 2026 will require providers to:

• Automatically move customers having trouble paying their bill onto their provider’s cheapest available plan.
• Offer payment methods other than direct debit for each plan.
• Increase the minimum debt owing before disconnection from $300 to $1,000.

These regulatory changes come at a critical time, with recent data showing the number of customers accessing tailored assistance (triggered when a customer in arrears misses another bill) hitting a record high of 91,383.

Midday Power Saver in place from October 1

Victoria will also soon join NSW, SA, and SE QLD in offering a default plan that includes a $0 electricity rate between 11am and 2pm, called the ‘Midday Power Saver’.

Modelling from the ESC shows a typical household that shifts 30% of their daily energy consumption into the free window could save as much as $428 a year.

Households with an electric vehicle have the potential to save even more – an estimated $674 – by charging their vehicle during these hours, according to the modelling. 

However, the cost saving is based on a customer on a default plan and these options tend to be more expensive than market offers.

It also has the potential to backfire for some households using a large amount of electricity during peak hours, with electricity rates on the CitiPower network, for example, 54% higher than the default flat rate plan.

Source: ESC, prepared by Canstar. Prices are for the CitiPower network.

Greater relief could be found by switching

Data from the ESC shows 61% of customers are not on their provider’s cheapest electricity plan, despite the fact this message is routinely displayed on page one of their electricity bill.

However, customers could find they can save more by moving to the lowest priced plan with a different provider.

Canstar’s analysis shows a typical household on the AusNet network could save as much as $385 by switching from the default offer to the lowest priced flat-rate plan on Canstar’s database.

While customers in Melbourne on the CitiPower network could potentially save as much as $327 by switching from the default to the lowest – a 22% saving.

Source: Canstar 31/07/2026. Based on single rate electricity plans on Canstar's database; excluding solar-only plans. Annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discount offered (if any) have been met. Representative customer based on the reference usage per Victorian Default Offer.

Canstar's Data Insights Director, Sally Tindall, says, “While a price drop to electricity bills for many households will be a welcome reprieve, they're modest drops at best.”

“However, there are potentially much bigger savings on the table for anyone willing to compare and switch.

“Canstar estimates show switching from a default plan to one of the lowest, could save a typical household as much as $385 over the next 12 months.

“If you've been overpaying with the same retailer for four years or more, you should have already been moved to a more reasonably priced plan. However, don’t just leave it up to your provider to pick out a new option, moving to a competitor could unlock even greater savings.

“Concerningly, data from the regulator shows a record number of households currently need tailored assistance. That's a clear sign cost-of-living pressures haven’t eased, even as some electricity prices edge down.

“Free electricity in the middle of the day sounds like Christmas, but, before you make the leap to one of these plans, run the numbers and be confident you can switch a reasonable amount of your electricity use to the middle of the day.

“If you don’t change your electricity habits and use a large amount of power during the peak, you could end up paying more just for the sake of grabbing a freebie.”

Source: ESC. Prepared by Canstar. Prices are estimates for an average household using 4,000 kWh/yr on a flat tariff on the default offer.