Home / Our prices are changing in Victoria

Our prices are changing in Victoria

On this page you’ll find information about why our prices are changing in Victoria, what makes up your energy prices, how we can support you if you’re struggling to pay your energy bills and more.

Graphic of a wind farm. Prices are changing in Victoria

Why are our prices changing?

The two greatest impacts on energy rates are wholesale and network costs. We have reviewed our rates to reflect changes in the underlying costs of providing energy. We’ve worked hard to make these new rates competitive.

Are my prices going up or down?

Your individual usage, distribution network and other factors will have an impact on your actual energy bills.

To see your existing and new rates, and the estimated annual dollar impact to you, log in to your Powershop account.

Are you having trouble paying your bills?

If you’re having trouble paying your Powershop energy bills – for any reason – please get in touch.

We understand that times can be tough which can make it hard to keep up with your bills. If you are facing financial difficulties, we are here to help so please give us a call as soon as possible.

Visit our Payment Help page on our website for more information on the support available.

What makes up energy prices?

The pricing in your electricity bill is impacted by all the different parts of the energy supply chain that work together to get power to your door. Below are some of the factors which make up the cost of the average energy bill:

This image is for illustrative purposes only and doesn’t represent a Powershop bill.

1. Wholesale costs
The costs of purchasing electricity from wholesale markets.

2. Network costs
The costs of managing and maintaining the network of poles and wires to transfer electricity to your property.

3. Environmental costs
The costs of complying with important environmental initiatives, such as meeting the Renewable Energy Target (RET) and developing small scale solar schemes.

4. Retailer costs
Our costs for looking after our customers, including managing customer data and billing services, developing tools like the Powershop app and running our award-winning Customer Care team.

5. Goods and services tax (GST)
Always included in the price.

How does electricity get to my property?

Here’s what it takes to get electricity to your power point.

1. Generation: electricity is generated through mixure of energy generation methods, including fossil fuel power plants (coal, gas, oil) and renewable generators (wind, water, sun).

2. Transformer: once generated, electricity is sent through transformers to increase the voltage so it can travel long distances across large transmission lines.

3. National Electricity Market: electricity is then sent across the National Electricity Market, which is made up of around 40,000km of transmission lines and cables.

4. Substation:the electricity then reaches a substation and the voltage is lowered so it can be sent to smaller power lines.

5. Distribution: electricity travels through this ‘network’ of distribution power lines managed by your distribution company, the voltage is lowered again, and the power arrives at your property.

6. Meter and house: after passing through your electricity meter so that your usage can be measured, the electricity travels through your property’s wiring to power your power points and appliances.

What is the Victorian Default Offer?

The Victorian Default Offer (VDO) is a rate for electricity independently set by the Essential Services Commission of Victoria (ESCV). All electricity retailers operating in Victoria must make this available to their Victorian small customers to sign up to if they wish.

While most of our market offers are more competitive than the VDO, what it does is provide a reference price for energy consumers. The reference price provides a ‘like for like comparison’ to easily compare market offers between retailers.

When browsing market offers in Victoria you will see them compared against the VDO as a percentage (i.e. this offer is 10% lower than the Victorian Default Offer). This can provide peace of mind for energy consumers, as they have a benchmark when comparing different energy offers.