Understand the Electricity Market in Melbourne and Victoria

Vic Melbourne

Post on June 15th, 2015

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Victoria is Australia’s second largest consumer of electricity. Just over 2.2 million residential and small business customers use electricity in Victoria every day. Almost 90% of the state’s electricity usage occurs in the capital city, Melbourne.

The Electricity Network in Victoria

In Victoria, electricity is generated at a number of different plants throughout the state including the Yallourn Power Station, Jeeralang Gas Turbine, and McKay Creek Hydroelectric plant.

Closure of Victoria’s aging Hazelwood plant in 2017 resulted in increasing wholesale costs of electricity. The loss of this plant removed 1600 MW of power from the grid. However, the closure of the plant was needed to meet renewable energy goals. Hazelwood generated electricity from brown coal, and was Australia’s most emissions-intensive power station. Victoria now uses a combination of coal, gas, hydro, solar, and wind generators.

From the generators, electricity is then transmitted via 6,000 kilometers of high-voltage electricity transmission line that is owned and maintained by AusNet Services. The costs of transmission are overseen by the Victorian state government and the Australian Energy Market Operator.

Victoria’s energy is then distributed to homes by five electricity distributors using over 200,000 kilometers of electricity distribution line. The distributor’s role is to maintain the energy infrastructure that supplies power to homes and businesses. Distributors must fix faults, as well as maintain and upgrade the poles and wires.

The five different distributors operating throughout Melbourne and Victoria are: Powercor, Citipower, United Energy, Jemena, and Ausnet Services. These wholesale distributors sell energy to retail electricity companies.

Electricity retailers then sell electricity to homes and businesses. It is these retail electricity companies that manage your bill and have the power to offer discounts on the price of your energy. In Victoria, electricity and gas markets are fully deregulated, which means consumers are free to choose their electricity company and plan.

Understanding Deregulation

The Victorian government first allowed full retail contestability in electricity and gas in 2002. Since then, all Victorian electricity customers have been able to choose their own retailer. Deregulation of the electricity market meant that consumer electricity usage charges (charged in cents per kilowatt hour) and service to property fees (the supply cost charged in cents per day) were determined by the electricity companies themselves.

This resulted in increased competition among retailers. This competition between electricity companies means smart consumers who shop around can find excellent deals on their electricity. While standing rates are going up, it’s possible to find cheap electricity in Melbourne with competitive market offers.

To gain a greater share of the electricity market, electricity retailers offer potential customers huge discounts, special deals, and other incentives. Retailers also might offer pay on time bonuses, flexible payment schemes, or different contract options that appeal to businesses or clients with particular needs. Customers should be aware that electricity prices are also affected by your meter type, the tariff you are on, and whether or not you install solar power.

With so many new retailers offering so many different and exciting options, it means that you’ve now got the power to choose the best electricity plan that suits you. Electricity retailers know this, and this is where you can really start to save. Compare companies and the best prices offered by retailers in Victoria and switch to the cheapest plan that meets your needs.

Choosing the Right Electricity Company Melbourne, VIC

There are a range of different electricity retailers in Melbourne and throughout Victoria. Some of them specialise in business and/or residential, and others specialise in green energy. The major retailers are:

With so many choices, it’s no wonder many consumers find it difficult to choose the right retailer.

Get a Better Deal on Your Victoria Electricity Bills

At Electricity Wizard, we do all the hard work for you. When you call us, we’ll compare your rates and plans against the best electricity companies in your area. Next we help you select the right plan for you. Whether you want to cut down on costs with a low usage rate, or have other criteria you need met, our energy experts have access to all the latest deals and plan features.

Best of all, our electricity comparison service is completely free – So what do you have to lose? We’ll help you to find and switch to the cheapest electricity in Melbourne and Victoria.

Try us today! Call Electricity Wizard now on 1300 359 779 or fill out your details below to have one of our comparison specialists help you get a better deal on your energy bills today! Stop paying too much for your electricity.

Understand the Electricity Market in Melbourne, Victoria

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