Electricity costs in Melbourne depend upon several varying factors per household, including:
- Where you live
- How much electricity you use
- What type of meter you have
- The electricity retailer you choose
In most cases, it is fairly difficult to compare different electricity retailers to secure a deal from amongst the lowest electricity costs in Melbourne – unless you use an accurate, easy comparison service like ElectricityWizard. Using an electricity comparison service is the only way to easily compare and find any cheaper rates available in your area.
What Type of Meter Do You Have?
Electricity costs in Melbourne will also depend on the type of meter that you have at home. A large majority of homes run on single-rate meters, which means that you are charged the same cost per kWh – no matter when you use electricity throughout the day.
Other households have off-peak meters that run specific large appliances, such as pool pumps, hot water heaters, or storage heaters that are used at night. For this reason, off-peak rates are significantly cheaper since electricity has a low demand during night-time hours.
Nonetheless, the most recent mandate from the Victorian government has ruled that all electricity meters must be replaced with Smart Meters or time-of-use meters within the next four years. These Smart Meters will allow electricity retailers to regulate prices by the hour so that customers are charged less during peak periods.
The Future of Electricity Costs in Melbourne
Although the introduction of Smart Meters may sound like an excellent idea at face value, the St. Vincent de Paul Society has revealed research that shows that households in Melbourne may experience an average annual increase of $263 on their power bills. This is due to the introduction of Smart Meters plus new integrated billing systems that will abolish flat-rate electricity supply.
When you add to that the introduction of the Federal Carbon Tax, it could tack on another $200 in household energy costs per year!
The regulatory chairman of Victoria, Steve Edwell, believes that consumers will soon see the benefits of the installation of Smart Meters with the potential for lower electricity prices – although that may not occur for up to five years.
Even though the Victorian government and electricity retailers are attempting to lower electricity prices over the long term, you still may be feeling the pinch today. That’s why it’s more important than ever to accurately compare electricity retailers in Melbourne to locate any great offers, then choose cheaper rates to save on your monthly power bill.