Victorians’ electricity bills to be slashed by an average of $144 next year

Hundreds of thousands of Victorians are soon set to have their electricity bills slashed by almost $150 as providers vow to keep cutting prices.

Hundreds of thousands of Victorian households will have their electricity bills cut by an average of $144 next year as another major energy retailer slashes its prices.

The Herald Sun can reveal that EnergyAustralia, one of the big three retailers, is wiping 6.1 per cent off its average household electricity variable rate plan from February 1.

It follows Origin Energy’s decision to cut its prices by 11 per cent from January 1, saving its customers about $186 on average.

EnergyAustralia will also deliver an 8 per cent discount to small and medium businesses, which is expected to reduce the average company’s bill by $529 next year.

But household gas bills with the retailer will rise by an average of $59 over the next 12 months, a 3.2 per cent rise, while businesses will pay an extra 3.9 per cent which will cost them an average of $300 more in 2021.

Victorians are set to save an average of $150 on their electricity bill next year Picture: iStock.

EnergyAustralia chief customer officer Mark Collette said customers who had both electricity and gas contracts with the company would be better off overall.

“2020 has been tough for many customers, marked by the devastating bushfires and the coronavirus pandemic. We’re glad we have been able to help our customers throughout,” Mr Collette said.

“As we move into a new year, we’re pleased to provide much-needed relief for Victorian households and businesses with their electricity costs.”

The savings come after the state government’s regulated default offer — designed to provide a simple and affordable deal to all Victorians — was also cut by 10 per cent.

About 125,000 households who are on the default offer will have their average annual bill cut from $1517 to $1358 next year.

Mr Collette said customers on the default offer could still save more than $100 next year by switching to an EnergyAustralia market offer.

He said the company would continue to support struggling households and businesses, having provided more than 110,000 payment plans and 50,000 payment extensions to Victorian customers since the pandemic hit in March.

“This year we have provided households more payment plans and extensions than ever before,” Mr Collette said.

“We continue to ask customers to reach out the moment it might become too difficult to pay their energy bill.”