Energy bills skyrocket for Victorian households

ENERGY bills for an average household in Victoria have rocketed to as much as $3655 a year, a report reveals.

The difference between worst and best electricity deals was typically up to $820 to $1090 a year.

ENERGY bills for an average household in Victoria have rocketed to as much as $3655 a year, a report reveals.

The shocking figures come as surging electricity and gas bills have contributed to the St Vincent de Paul Society ­experiencing a 40 per cent increase in financial support for Victorians in need.

Related: How to save on electricity and gas prices

Families living in northern Victoria, the Latrobe Valley and Sale are being stung with the highest combined electricity and gas costs.

Those in inner eastern and south eastern suburbs typically pay the least, according to St Vincent de Paul Society research.

Vinnies energy expert Gavin Dufty said poles, wires and gas piping costs varied across the state.

But he urged residents to shop around or demand a better price from their retailer, no matter where they lived, to avoid rip-offs.

The bill pressure has seen St Vincent de Paul Society increase it’s financial support for Victorians.

“The most expensive tariffs compared with the cheapest deals are significantly more no matter which network area you reside in,” Mr Dufty said.

The difference between worst and best electricity deals was typically up to $820 to $1090 a year, depending on location. Biggest potential savings were in eastern and northeastern Victoria.

For gas, average consumption homes could typically save as much as $490 to $680, depending on region. Greatest potential savings from shopping around were in northern Victoria.

Vinnies examined default “standing offers” and discounted market offers published on retailers’ websites from mid-July to mid-August.

Discounts often have attached conditions such as paying on time and direct debit.

The State Government is considering forcing retailers to introduce a no-frills electricity tariff amid concerns that excess profits are being skimmed from some consumers.

Mr Dufty said retail price re-regulation could have unintended consequences that would “in all likelihood disadvantage some customers”.

“There is no such thing as a free lunch. If a basic service offer with a price cap is made available, you would expect retailers would have to recover costs elsewhere.”

It would be best to first focus on making it easier for consumers to compare and choose suitable energy offers, he said.

“The current energy retail market is characterised by high prices, confused customers and tricky products.”

Even the government-run comparison site Victorian Energy Compare was too complicated and needed to be more user-friendly, he said.

ANNUAL COSTS (Average consumption homes)

COMBINED ELECTRICITY AND GAS

INNER CITY, INNER NORTH, EASTERN SUBURBS

Melbourne CBD, Brunswick, Carlton, Fitzroy, Northcote, Richmond, Collingwood $2890-$3300

Kew, Hawthorn, Camberwell, Balwyn, South Yarra, Prahran, Armadale, Toorak, Caulfield $2890-$3275

St Kilda, Port Melbourne, Albert Park, South Melbourne $2895-$3275

INNER WEST AND NORTH WEST

Footscray, Yarraville, Williamstown, Flemington, Moonee Ponds, Broadmeadows, Coolaroo, Braybrook, Sydenham $3080-$3495

Heidelberg, Fairfield, Ivanhoe, Bundoora, Thomastown, Preston, Reservoir $3055-$3470

SOUTH EASTERN, MORNINGTON PENINSULA

Elwood, Elsternwick, Brighton, Sandringham, Beaumaris, Chelsea, Bentleigh, Moorabbin, Springvale, Noble Park, Keysborough $2975-$3555

Seaford, Frankston, Mornington Peninsula $2990-$3410

Bulleen, Templestowe, Box Hill, Doncaster, Mitcham, Vermont, Glen Waverley, Chadstone $2970-$3355

OUTER WEST, WESTERN AND NORTHERN VICTORIA

Hoppers Crossing, Werribee, Geelong, Bellarine Peninsula $3095-$3535

Macedon, Kyneton, Ballarat, Colac, Warrnambool, Portland, Hamilton, Horsham, Ararat, Daylesford $3020-$3380

Echuca, Shepparton, Heathcote $3085-$3540

OUTER NORTH AND EAST, EASTERN VICTORIA

Warrandyte, Ringwood, Chirnside Park, Mt Dandenong $3225-$3590

Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern, Wodonga $3245-$3655

Latrobe Valley, Sale $3245-$3645

ALL-ELECTRIC

Outer western suburbs; western Victoria $1890-$2315

Outer north and eastern suburbs; eastern Victoria $2070-$2430

Source: Victorian Energy Prices July 2017. Average market offer to average standing offer price range for non-solar customers.

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@KarenCollierHS