Victorian Energy Prices July 2018

Victorian Energy Prices July 2018 An update report on the Victorian Tariff-Tracking Project Victorian Energy Prices July 2018 An Update report on the Victorian Tariff-Tracking Project

May Mauseth Johnston, August 2018

www.alvissconsulting.com www.vinnies.org.au twitter.com/AlvissC twitter.com/VinniesAust

Contact: Gavin Dufty Manager, Social Policy Unit Victoria St Vincent de Paul Society Phone: (03) 98955816 or 0439 357 129 twitter.com/gavindufty

© St Vincent de Paul Society and Alviss Consulting Pty Ltd This work is copyright. Apart from any use permitted under the Copyright Act 1968 (Ctw), no parts may be adapted, reproduced, copied, stored, distributed, published or put to commercial use without prior written permission from the St Vincent de Paul Society. Disclaimer The energy offers, tariffs and bill calculations presented in this report and associated workbooks should be used as a general guide only and should not be relied upon. The workbooks are not an appropriate substitute for obtaining an offer from an energy retailer. The information presented in this report and the workbooks is not provided as financial advice. While we have taken great care to ensure accuracy of the information provided in this report and the workbooks, they are suitable for use only as a research and advocacy tool. We do not accept any legal responsibility for errors or inaccuracies. The St Vincent de Paul Society and Alviss Consulting Pty Ltd do not accept liability for any action taken based on the information provided in this report or the associated workbooks or for any loss, economic or otherwise, suffered as a result of reliance on the information presented. If you would like to obtain information about energy offers available to you as a customer, go to the Victorian Government’s website www.switchon.vic.gov.au or contact the energy retailers directly.

Acknowledgments This project was funded by Energy Consumers Australia (www.energyconsumersaustralia.com.au) as part of its grants process for consumer advocacy projects and research projects for the benefit of consumers of electricity and natural gas.

The views expressed in this document do not necessarily reflect the views of Energy Consumers Australia.

We also wish to thank and acknowledge the efforts of the various retailers that review and provide feedback on these reports. While any errors that may occur are our own, we appreciate their views, suggestions and cooperation. The Victorian Tariff-Tracking Project

To date, this project has tracked electricity and gas tariffs in Victoria from July 2008 (retail price deregulation took effect on 1 January 2009) to July 2018, and developed a spreadsheet based tool that allows consumer advocates to build on the initial analysis and continue to track changes as they occur. A recent addition to the Tariff-Tracking project is market offers available to new solar customers. The workbook allows users to calculate annual bills based on retailers’ rates, feed in tariffs offered and additional discounts. Again, the user can enter consumption level as well as choosing to run the bill calculation based on 1.5 kW or 3 kW solar systems.

We have developed five workbooks that allow the user to enter consumption levels and analyse household bills for gas and electricity:

Workbook 1: Electricity standing offers July 2008- July 2018 Workbook 2: Gas standing offers July 2008- July 2018 Workbook 3: Electricity market offers 2010 to 2018 Workbook 4: Gas market offers 2010 to 2018 Workbook 5: Solar market offers 2016 and 2018

The five workbooks can be accessed at the St Vincent de Paul Society Victoria’s website www.vinnies.org. au/energy Contents

The Victorian Tariff-Tracking Project 4 Key findings 1 1. Changes to the standing offers 3 1.1 Electricity standing offers July 2017 – July 2018 3 1.1 Gas standing offers July 2017 – July 2018 4 2. Market offers 5 2.1 Electricity market offers post July 2018 5 2.2 Gas market offers post July 2018 18 3. Solar offers 29 Methodology and assumptions 29 4. Cost components and bill-stack analysis 38 5. Total cost of energy by area 44 5.1 Inner city, inner North and Eastern suburbs 45 5.2 Inner West and North Western Suburbs 45 5.3 South Eastern suburbs and Mornington Peninsula 46 5.4 Outer Western suburbs and Western Victoria 46 5.5 Outer Northern and Eastern suburbs and Eastern Victoria 47 Key findings

• None of the incumbent retailers have gazetted new electricity or gas standing offers since January 2018. Some smaller retailers, such as Alinta, Globird and Powershop have issued new standing offers since then.1 Compared to July 2017, electricity standing offers (single rate) increased on average by 10-16% (depending on network area) and gas prices increased by 5-16%.2 See section 1.

• As of July 2018, the average electricity market offer bill for households using 4,800 kWh/annum is $1,585. This is an increase of $35 (or 2%) compared to July 2017.3 For gas, the average market offer bill for households consuming 63,000 Mj/annum is $1,550. This is an increase of $55 (or 4%) compared to July 2017.4 See section 2.

• Households with typical electricity consumption can save up to $2,110 - $2,675 per annum (depending on their network area) if switching from the worst standing offer to the best market offer.5 See section 2.1.

• The difference between the best and the worst market offers ranges from $700 per annum (in Citipower’s area) to $960 (in Ausnet’s area) for customers with typical consumption levels.6 See section 2.1.

• Tango Energy’s market offers produce the lowest annual bill for average consumption households in all network areas except Ausnet where Sumo Power’s offer produces the lowest bill.7 We do note, however, that Sumo’s standing offer (in the Ausnet network) produces the highest annual bill while their lower market offer rates, as well as very high time on pay discount, produces the lowest market offer bill. It is unusual that the retailer with the most expensive standing offer has a market offer that produces the lowest bill in the same network area. See Chart 10 in section 2.1.1.

• Dodo has the most expensive market offer three out of five network areas.8 See section 2.1.1.

• The ‘big 3’ retailers (AGL, Origin and Energy Australia) now also offer products without conditional discounts and with fixed rates (for a limited time) and these offers produce lower annual bills compared to their pay on time discount products. See section 2.1.1.

• Gas customers with typical consumption (63,000Mj) can save up to $955 - $1,285 per annum (depending on their gas zone) if switching from the worst standing offer to the best market offer.9 See section 2.2.

• More retailers are now offering gas in Victoria and more retailers are offering gas as a stand-alone product (independent of electricity). See section 2.2.

• The price-spread for gas market offers ranges from $845 per annum (Ausnet West/Tru West gas zone) to $935 Envestra North/Origin North gas zone) for customers with typical consumption levels.10 See section 2.2.

1 Alinta’s usage charges came down and Powershop and GloBird published gas standing offers as they are new entrants in the gas retail market. 2 Bill calculations based on the incumbent retailers’ average electricity (4,800kWh) and gas (63,000Mj) standing offers 3 Average market offer across all network areas. Market offer bills are based on single rate and include guaranteed discounts and/ or pay on time discounts. 4 Average market offer across all gas zones. Market offer bills include guaranteed discounts and/or pay on time discounts. Dual fuel gas offers are not included. 5 Based on the worst of the retailers’ standing offer (single rate) and the best of the published market offers (including guaranteed discounts and/or pay on time discounts). 6 Households using 4,800kWh per annum (single rate) and all market offer bills include guaranteed discounts and/or pay on time discounts. 7 Ibid. 8 Ibid. 9 Based on the worst of the retailers’ standing offer and the best of the published market offers (including dual fuel offers, guaranteed discounts and/or pay on time discounts). 10 Households using 63,000Mj per annum. All published market offers (including dual fuel offers, Guaranteed discounts and/or pay on time discounts). 1 • Of the retailers that offer gas as a stand-alone product (i.e. not bundled with electricity), Energy Australia’s market offer produces the lowest annual bill in six of the eight gas zones. See section 2.2.2.

• New solar customers with a 3 kW system installed will have an annual bill that is between $825 and $1,030 less (depending on network area) than non-solar customers with the same consumption level.11 See section 3.

• New solar customers should not choose retail offers based on Feed in Tariffs (FIT) alone. Households may be significantly worse off on a retail offer with high FIT rates as well as higher usage rates and/or lower discounts. See section 3.

• On average, across all five network areas, the estimated retail component of customers’ bills is approximately $770 per annum for standing offer customers, $310 for market offer customers (including pay on time discounts) and $20 for solar customers (including pay on time discounts).12 See section 4.

• Dual fuel households in the La Trobe Valley and Sale in the Gippsland region as well as households in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga (Ausnet electricity network and Envestra’s Origin North and Origin South East gas zones) continue to face the highest energy costs in the state (approximately $3,300 per annum).13 See section 5.5.

• Dual fuel households in eastern Victoria on electricity and gas standing offers, will now have an annual energy bill of more than $4,000 per annum.14 See section 5.5.

• Dual fuel households in the inner eastern suburbs of Kew, Hawthorn, Camberwell and Balwyn, the inner south east areas of South Yarra, Prahran, Armadale, Toorak, Caulfield, the Bayside area and the south eastern suburbs have the lowest energy costs in the state ($2,990 per annum).15 See section 5.

11 Bill calculations based on average electricity (4,800kWh) market offers including guaranteed discounts and pay on time discounts. 12 Note that this is based on components of customers’ bills and not retailers’ revenue from each customer type. The energy exported by solar customers does, for example, have a value to the retailers. Other charges such as market fees and ancillary service fees as well as losses have not been accounted for in this bill-stack. Market fees are approximately $0.35/MWh and ancillary services is $0.18/MWh. The loss factor varies between network areas and is highest in the large rural networks (Ausnet and Powercor). 13 Bill calculations based on average electricity (4,800kWh) and gas (63,000Mj) market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 14 Bill calculations based on the incumbent retailers’ average electricity (4,800kWh) and gas (63,000Mj) standing offers in the Aus- net electricity network and the Multinet Metro, Origin North and Origin South East gas zones. 15 Bill calculations based on average electricity (4,800kWh) and gas (63,000Mj) market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. Customers in the Citipower electricity network and Multinet 1/Origin Metro and Multinet 2/AGL South gas zones. 2 1. Changes to the standing offers

Most of the Victorian retailers gazetted new standing offers that took effect in January/February 2018 and none of the three incumbent retailers have gazetted new electricity or gas standing offers since then. Some smaller retailers, such as Alinta, Globird and Powershop have issued new standing offers since then.

1.1 Electricity standing offers July 2017 – July 2018

As in the previous Tariff-Tracking reports, the bill calculations in this report have assumed an average consumption of 4,800kWh per annum for households on the single rate.16 These are generally households connected to mains gas and therefore have a lower consumption than all- electric households. There are five network businesses in Victoria: Powercor and Ausnet distributing electricity to rural and regional Victoria and Citipower, Jemena and United Energy.

Charts 1 - 3 below show the incumbent retailers’ electricity standing offer as of July 2016, January 2017 and July 2017. They show that households experienced a price increase in January 2017 and have remained unchanged since then.

Chart 1 Changes to AGL’s standing Jul'17 Jan'18 Jul'18 offers (as annual bills, inc GST) from 2,400 July 2017 to July 2018 - Calculations based on single rate tariff and annual 2,200 consumption of 4,800kWh

2,000

1,800 $ per annum 1,600

1,400

1,200 Citipower Powercor Ausnet Jemena United Network areas

Chart 2 Changes to Origin’s standing Jul'17 Jan'18 Jul'18 offers (as annual bills, inc GST) from 2,400 July 2017 to July 2018 - Calculations based on single rate tariff and annual 2,200 consumption of 4,800kWh

2,000

1,800 $ per annum 1,600

1,400

1,200 Citipower Powercor Ausnet Jemena United Network areas

16 For all-electric households, which are predominantly in rural areas, we assume an average consumption of 7,000kWh per annum. Consumption levels do vary between network areas but we believe 4,800kWh and 7,000kWh per annum are appropriate benchmarks to analyse tariff changes and bill impacts for Victorian households. 3 Jul'17 Jan'18 Jul'18

Chart 3 Changes to Energy 2,400 Australia’s standing offers (as annual bills, inc GST) from 2017 to July 2018 - Calculations based 2,200 on single rate tariff and annual consumption of 4,800kWh 2,000

1,800 $ per annum 1,600

1,400

1,200 Citipower Powercor Ausnet Jemena United Network areas

1.1 Gas standing offers July 2017 – July 2018

There are three gas distributors and eight main gas zones. The distributors are Multinet, Envestra/Austra- lian Gas Network and Ausnet. The gas zones are: Multinet 1/Origin Metro, Multinet 2/AGL South, Envestra North/Origin North, Envestra Central 2/TRU East, Envestra Central 1/Origin South East, Ausnet West/TRU West, Ausnet Central 2/AGL North and Ausnet Central 1/TRU Central. The names of the gas zones derive from when AGL, Origin and TRU (now Energy Australia) were energy retailers with designated areas. These three retailers are not distribution businesses and they are not involved in setting the distribution charges in these areas. The companies’ names are merely used as a descriptor for the various gas zones that Multinet, Envestra/Australian Gas Network and Ausnet distribute gas to. There are also some smaller rural zones (such as Mildura) that are not included in the Tariff-Tracking tool.

Charts 4 - 6 below show the incumbent retailers’ gas standing offer as of July 2017, January 2018 and July 2018. They show that households experienced a gas price increase in January 2018 and that standing offer prices have remained unchanged since then.

Jul'17 Jan'18 Jul'18 Chart 4 Changes to AGL’s standing 2,000 offers (as annual bills, inc GST) from July 2017 to July 2018 - Calculations 1,900 based an annual consumption of 1,800 63,000Mj 1,700 1,600 1,500 1,400 $ per annum 1,300 1,200 1,100 1,000

Tru East Origin SE Tru West AGL South AGL N or th Tru Central Origin Metro Origin North Gas zones

4 Jul'17 Jan'18 Jul'18 Chart 5 Changes to Origin’s standing 2,000 offers (as annual bills, inc GST) from July 2017 to July 2018 - Calculations 1,900 based an annual consumption of 1,800 63,000Mj 1,700 1,600 1,500 1,400 $ per annum 1,300 1,200 1,100 1,000

Tru East Origin SE Tru West AGL South AGL N or th Tru Central Origin Metro Origin North Gas zones

Jul'17 Jan'18 Jul'18 Chart 6 Changes to Energy 2,000 Australia’s standing offers (as annual bills, inc GST) from July 2017 1,900 to July 2018 - Calculations based 1,800 an annual consumption of 63,000Mj 1,700 1,600 1,500 1,400 $ per annum 1,300 1,200 1,100 1,000

Tru East Origin SE Tru West AGL South AGL N or th Tru Central Origin Metro Origin North Gas zones

2. Market offers

While many retailers have not gazetted new standing offer prices since January, most retailers have amended their market offers. The size of the discounts offered continues to be very high and most of them are conditional upon bills being paid on time.17 As of July 2018, the average electricity market offer bill for households using 4,800 kWh/annum is $1,585. This is an increase of $35 (or 2%) compared to July 2017.18 For gas, the average market offer bill for households consuming 63,000 Mj/annum is $1,550. This is an increase of $55 (or 4%) compared to July 2017.19 See section 2.

2.1 Electricity market offers post July 201820

The price-spread, or the difference between the best market offer and the worst standing offer (as well as the differences between market offers), will change somewhat throughout the year but post July 2018:

• Typical consumption households (4,800kWh) can save $2,110 - $2,675 per annum (depending on 17 Note that the big three (AGL, Energy Australia and Origin) have recently introduced offers with guaranteed discounts as well. 18 Average market offer across all network areas. Market offer bills are based on single rate and include guaranteed discounts and/ or pay on time discounts. 19 Average market offer across all gas zones. Market offer bills include guaranteed discounts and/or pay on time discounts. Dual fuel gas offers are not included. 20 The market offers were collected between 1st and 19th of July 2018 and it should be noted that retailers may change their rates at any time. 5 their network area) if switching from the worst standing offer to the best market offer.21

• The greatest potential annual saving is in Ausnet’s network areas (approximately $2,675).22

• The difference between the best and the worst market offers ranges from $700 per annum (in Citipower’s area) to $960 (in Ausnet’s area) for customers with typical consumption levels.23

Table 1 below shows additional discounts applicable to the electricity retailers’ published market offer rates. Some of the retailers have multiple market offers and may offer higher (or lower) discounts than those listed here. However, if the discount is higher the length of the contract term is typically longer. In other cases, the discount might be higher but the customer must agree to pay by direct debit.24

Table 1 Electricity market offer features post July 201825

Effective Guaranteed Pay on time Contract term/ Early Retailer Name from discount discount benefit period termination fee 1st Energy Market Offer 1/07/18 no 43% off usage 24 months no AGL Savers 1/07/18 no 30% off usage 12 months no Alinta Energy Fair Deal 12/07/18 no 43% off usage 24 months no Click Energy Agate 1/03/18 no 27% off bill no no Commander Market offer 1/10/17 no 20% off usage no no CovaU Smart Saver 1/02/18 no 34% off usage 12 months no Pay on time Diamond Energy 1/01/18 no 7% off bill no $22 discount Dodo Power & Dodo Electricity 23/02/18 no no no no Gas^ EnergyAustralia Anytime Saver 1/07/18 34% off usage no 12 months no GloBird Energy^ Glosave 1/05/18 no 34% off bill no no Lumo Energy Advantage 18/04/19 no 27% off bill no no Momentum Energy SmilePower 1/07/18 no no 12 months no Origin Energy Saver 23/03/18 no 26% off usage 12 months no Tango Energy Home Select 12/06/18 no no 24 months no People Energy^ On time saver 1/07/17 no 20% off usage no no Powerdirect Market Offer 29/06/18 no 37% off usage 12 months no Powershop* Power Saver 1/07/18 no 19.5% off bill no no Flexi Saver Q Energy 12/06/18 no no 24 months no Home Living Energy Red Energy 14/02/18 no 10% off bill no no Saver Simply Energy Plus 4/04/18 no 40% off usage 24 months no Sumo Power Pay on time 14/06/18 no 43% off usage 12 months no Amaysim Electricity 4 29/05/18 no 5% off bill no no

^ Additional discounts for direct debit, e-billing or dual fuel customers may apply * Powershop’s conditional discount is not based on pay on time but it does require customers to actively purchase special deals

21 Based on the worst of the retailers’ standing offer (single rate) and the best of the published market offers (including additional discounts and/or pay on time discounts). 22 Ibid. 23 Households using 4,800kWh per annum (single rate) and all market offer bills include additional discounts and/or pay on time discounts. 24 Dodo, for example, has introduced a direct debit discount where customers receive a 30% discount off the market offer electricity rates. This discount is not included in the bill calculations presented in this report. 25 These market offers are features have been published on the retailers’ websites on between 1st and 19th of July 2018. 6 2.1.1 Potential savings - Differences between electricity offers

Typical consumption households (4,800kWh per annum) on the worst standing offers can save $2,110 - $2,675 per annum if switching to the best published market offer (depending on their network area).26 The difference between the worst and the best market offers is also significant. Customers on the best market offer will pay approximately $700 - $960 less per annum compared to customers on the worst market offer. It should be stressed that the majority of these discounts are conditional on bills being paid on time and households with cash-flow issues thus may find themselves unable to achieve the annual bills estimated for some of the best offers included in the charts below.

Furthermore, the big price-spread reflects the significant difference between the worst and the best retail offers in each network area. If we exclude these outliers (the two worst and the two best offers), the difference between the best and the worst market offer ranges from $530 per annum (in Citipower’s area) to $625 (in Ausnet’s area).27 Chart 7 below shows the retail market offer price-spread within each of the five network areas.

2,600 Chart 7 Maximum price-spread for market offers in each network area July 2,400 2018 (incl GST), including discounts and pay on time discounts - Households 2,200 consuming 4,800kWh per annum (single rate) 2,000

1,800

1,600 $ per annum

1,400

1,200

1,000

800 CP PC Aus Jen UE

Charts 8 - 12 below show annual retail bills for typical consumption (4,800kWh per annum, single rate) for each of the five network areas. The blue columns to the left represent the standing offer bill, the red columns are the market offers including guaranteed discounts (but not pay on time discounts) while the green columns are market offer bills including pay on time discounts.28

26 Based on market offer bills that include guaranteed discounts and pay on time discounts. 27 Households using 4,800kWh per annum (single rate) and all market offer bills include guaranteed discounts and/or pay on time discounts. 28 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in table 1. 7 Citipower

In Citipower’s area, average consumption households on the worst standing offer can save approximately $2,110 per annum if switching to the best published market offer. Tango Energy is the retailer that currently offers the best market offer rates in this area.29

St an di ng Market (ex POT) Market (inc POT) Chart 8 Citipower’s network area: Estimated annual bills (incl GST) 5,000 for electricity standing and market 4,500 offers post July 2018, including 4,000 discounts and pay on time 3,500 discounts - Households consuming 3,000 4,800kWh per annum (single rate) 2,500 2,000 1,500 1,000 500

AGL CovaU Q Ener gy Amaysim 1st E nergy Powershop Red Energy Click EnergyCommander Powerdirect Al int a Energy Lumo Ener gy Origin Energy Sumo Power Tango EnergyPeople Energy Si mply Ener gy EnergyAustraliaGloBird Energy Dia mond Ener gy Dodo Power & Ga s Momentum Energy Retail offers in Citipower's area

The difference between the best and the worst market offer is also significant. Tango Energy’s offer is approximately $705 less than Dodo’s market offer post discounts (and pay on time discounts) for households with this consumption level. Figure 1 below shows estimated annual bills for market offers post discounts in Citipower’s network.30

29 The pay on time discount applied to Powershop’s offer will only be obtained if customers actively “shop” for discounts. 30 These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 8 Figure 1 Citipower’s network area: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,150

Alinta $1,187

QEnergy $1,204

GloBird $1,229

Click Energy $1,332

Sumo Power $1,334

Powerdirect $1,359

Simply Energy $1,384

Red Energy $1,422

Lumo Energy $1,427

Powershop $1,433

Energy Australia $1,453

AGL $1,458

CovaU $1,521

Origin Energy $1,524

1st Energy $1,539 Commander Electricity $1,569

Diamond Energy $1,581 Momentum Energy $1,705

Amaysim $1,734

People Energy $1,845 Dodo Power & Gas $1,854

9 Powercor

In Powercor’s network area, average consumption households on the worst standing offer can save $2,320 per annum if switching to the best published market offer. Tango Energy is again the retailer that currently offers the best market offer rates.

St an di ng Market (ex POT) Market (inc POT) Chart 9 Powercor’s network area: Estimated annual bills (incl GST) 5,000 for electricity standing and market 4,500 offers post July 2018, including 4,000 discounts and pay on time 3,500 discounts - Households consuming 3,000 4,800kWh per annum (single rate) 2,500 2,000 1,500 1,000 500

AGL CovaU

Q Ener gy Amaysim 1st E nergy Powershop Red Energy Click EnergyCommander Powerdirect Al int a Energy Lumo Ener gy Origin Energy Sumo Power Tango EnergyPeople Energy Si mply Ener gy EnergyAustraliaGloBird Energy Dia mond Ener gy Dodo Power & Ga s Momentum Energy Retail offers in Powercor's area

The difference between the best and the worst market offers is more than that of Citipower’s network area. Tango Energy’s offer is $885 less than Dodo’s market offer post discounts for households with this consumption level. Figure 2 below shows estimated annual bills for market offers post discounts in Powercor’s network area.31

31 These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 10 Figure 2 Powercor’s network area: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,279

GloBird $1,295

Alinta $1,335

QEnergy $1,341

Sumo Power $1,460

Click Energy $1,467

Powerdirect $1,481

Simply Energy $1,489

Lumo Energy $1,528

Red Energy $1,566

Powershop $1,578

AGL $1,588

1st Energy $1,607

Energy Australia $1,615

CovaU $1,633

Origin Energy $1,736

Diamond Energy $1,767 Commander Electricity $1,821 Momentum Energy $1,860

Amaysim $1,909

People Energy $2,158 Dodo Power & Gas $2,164

11 Ausnet

In Ausnet’s network area, average consumption households on the worst standing offer can save approximately $1,860 per annum if switching to the best published market offer. Pacific Hydro is the retailer with the best market offer rates in this network area.

St an di ng Market (ex POT) Market (inc POT) Chart 10 Ausnet’s network area: Estimated annual bills (incl GST) 5,000 for electricity standing and market 4,500 offers post July 2018, including 4,000 discounts and pay on time 3,500 discounts - Households consuming 3,000 4,800kWh per annum (single rate) 2,500 2,000 1,500 1,000 500

AGL CovaU

As in other network areas, the difference between the best and the worst market offers is significant. Sumo Power’s offer is approximately $955 less per annum than Dodo’s market offer post discounts for households with this consumption level. Figure 3 below shows estimated annual bills for market offers post discounts in Ausnet’s network area.32

32 These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 12 Figure 3 Ausnet’s network area: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Sumo Power $1,421

Tango Energy $1,427

GloBird $1,449

QEnergy $1,475

Alinta $1,487

Powerdirect $1,547

Click Energy $1,570

Simply Energy $1,580

Red Energy $1,638

Lumo Energy $1,657

AGL $1,663

Powershop $1,675

Energy Australia $1,680

1st Energy $1,726

CovaU $1,746

Origin Energy $1,814

Diamond Energy $1,860 Commander Electricity $1,996 Momentum Energy $2,015

Amaysim $2,074

People Energy $2,349 Dodo Power & Gas $2,376

13 Jemena

In Jemena’s network area, average consumption households on the worst standing offer can save approximately $2,340 per annum if switching to the best published market offer. Tango Energy is the retailer with the best market offer rates in this network area.

St an di ng Market (ex POT) Market (inc POT) Chart 11 Jemena’s network area: Estimated annual bills (incl GST) 5,000 for electricity standing and market 4,500 offers post July 2018, including 4,000 discounts and pay on time 3,500 discounts - Households consuming 3,000 4,800kWh per annum (single rate) 2,500 2,000 1,500 1,000 500

AGL CovaU Q Ener gy Amaysim 1st E nergy Powershop Red Energy Commander Powerdirect Al int a EnergyClick Energy Sumo Power Lumo Ener gy Origin EnergyTango Energy People Energy Si mply Ener gy EnergyAustraliaGloBird Energy Dia mond Ener gy Dodo Power & Ga s Momentum Energy Retail offers in Jemenea's area

The difference between the best and the worst market offers is $870 per annum. Tango Energy has the best value market offer rates and, again, Dodo has the worst. Figure 4 below shows estimated annual bills for market offers post discounts in Jemena’s network.33

33 These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 14 Figure 4 Jemena’s network area: Lowest to highest annual bills (incl GST) for market offers post July 2017, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,262

GloBird $1,275

Alinta $1,336

QEnergy $1,351

Sumo Power $1,430

Click Energy $1,447

Simply Energy $1,460

Powerdirect $1,486

Red Energy $1,490

Powershop $1,526

Lumo Energy $1,531

Energy Australia $1,552

1st Energy $1,582

AGL $1,597

CovaU $1,611

Origin Energy $1,616

Diamond Energy $1,707 Momentum Energy $1,774 Commander Electricity $1,789

Amaysim $1,883

People Energy $2,094 Dodo Power & Gas $2,131

15 United Energy

In United Energy’s network area, average consumption households on the worst standing offer can save approximately $2,160 per annum if switching to the best published market offer. Tango Energy is again the retailer with the best market offer rates in this network area.

St an di ng Market (ex POT) Market (inc POT) Chart 12 United Energy’s network area: Estimated annual bills (incl 5,000 GST) for electricity standing and 4,500 market offers post July 2018, 4,000 including discounts and pay on 3,500 time discounts - Households 3,000 consuming 4,800kWh per annum 2,500 (single rate) 2,000 1,500 1,000 500

AGL CovaU Q Ener gy Amaysim 1st E nergy Powershop Powerdirect Red Energy Al int a EnergyClick EnergyCommander Sumo Power Lumo Ener gy Origin EnergyTango Energy People Energy Si mply Ener gy EnergyAustraliaGloBird Energy Dia mond Ener gy Dodo Power & Ga s Momentum Energy Retail Offers in United Energy's area

As in other network areas, the difference between the best and the worst market offers is significant. Tango Energy’s offer is $820 less per annum than Dodo’s market offer post discounts for households with this consumption level. Figure 5 below shows estimated annual bills for market offers post discounts in United Energy’s network area.34

34 These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 16 Figure 5 United Energy’s network area: Lowest to highest annual bills (incl GST) for market offers post July 2017, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,197

GloBird $1,215

Sumo Power $1,230

QEnergy $1,246

Alinta $1,249

Click Energy $1,369

Powerdirect $1,401

Simply Energy $1,425

Red Energy $1,465

Powershop $1,483

Lumo Energy $1,501

AGL $1,508

Energy Australia $1,511

1st Energy $1,562

CovaU $1,590

Origin Energy $1,592

Diamond Energy $1,637 Commander Electricity $1,699

Amaysim $1,782 Momentum Energy $1,795

People Energy $1,956 Dodo Power & Gas $2,017

17 The ‘big 3’ retailers (AGL, Origin and Energy Australia) have various market offers where discounts and/ or rates vary whether the offers contain fixed prices, guaranteed discounts, pay on time discounts, direct debit discounts etc. Chart 13 below compares all of AGL, Origin and Energy Australia’s offers in the Citipower network for households using 4,800kWh per annum.35 Interestingly, the offers that produce the lowest bills for all three retailers are the fixed rate/no discount products (orange columns).36 AGL and Origin have products where the discount is conditional upon bills being paid by direct debit (grey columns) and all three retailers have products with a guaranteed discount (red columns). We note that Energy Australia’s guaranteed discount (the ‘Anytime Saver’) produces lower bills than Origin’s direct debit product (‘Maximiser’) and AGL’s pay on time product (‘Saver’). For AGL and Origin, on the other hand, the guaranteed discount products (red columns) produce higher bills than the pay on time products (blue columns).37

2,000 Chart 13 Estimated annual bills (incl GST) for AGL, Origin and Energy 1,800 Australia’s electricity market offers post

July 2018 in Citipower’s network area - 1,600 Households consuming 4,800kWh per

annum (single rate) 1,400

Annual bill ($) 1,200

1,000

800

AGL Savers Origin Saver AGL Prepaid AGL Everyday AGL Essentials EA Flexi Saver Origin Bill Saver EA Secure Saver EA Anytime SaverOrigin Maximiser Origin OneAGL low Set rate and forget Origin Saver Online

Origin Maximiser Online AGL Savers Home Connect

2.2 Gas market offers post July 201838

• Typical consumption households (63,000Mj) can save $955 - $1,285 per annum (depending on their gas zone) if switching from the worst standing offer to the best market offer.39

• The greatest potential savings are in the Envestra Central 1/Origin South East gas zone covering the Mornington Peninsula and West Gippsland.40

• The difference between the best and the worst market offers ranges from $845 per annum (Ausnet West/Tru West gas zone) to $935 (Envestra North/Origin North gas zone) for customers with typical consumption levels.41

Chart 14 below shows the retail market offer price-spread within each of the eight main gas pricing zones.

35 This comparison does not include dual fuel or solar offers. 36 AGL and Origin offer fixed rates for 1 year while Energy Australia’s offer is based on 2 years. 37 This analysis shows that the ‘big 3’ have offers that produce lower bills than the offers included in the main analysis above. However, as customers are locked in to rates for two years on Energy Australia’s Secure Saver, and Origin and AGL’s lower bill products require payment by direct debit, we continue to base our analysis on these discounted products. That said, we will continue to monitor changes to the discounts offered. 38 The market offers were collected between 1st and 19th of July 2018 and it should be noted that retailers may change their rates at any time. 39 Based on the worst of the retailers’ standing offer and the best of the published market offers (including additional discounts and/or pay on time discounts). 40 Ibid. 41 Households using 63,000Mj per annum. All market offer bills include additional discounts and/or pay on time discounts. 18 2,400 Chart 14 Price-spread for fifteen gas market offers in each pricing zone 2,200 post July 2018 (incl GST), including discounts and pay on time discounts - Households consuming 63,000Mj 2,000 per annum42 1,800

1,600 $ per annum

1,400

1,200

1,000 Multi 1 Multi 2 Envestra Envestra Envestra Ausnet Ausnet Ausnet North Central 2 Central 1 West Central 2 Central 1

As with electricity, additional discounts apply to the gas market offer rates. The majority of these discounts are now conditional on the customer paying the bill by the due date. Table 2 below shows additional discounts applicable to the gas retailers’ published market offer rates.

Table 2 Gas market offers post July 201843

Retailer Name Effective Guaranteed Pay on time Contract term/ Early from discount discount benefit period termination fee AGL Savers 3/07/18 no 16% off usage 12 months no

Alinta Energy Fair Deal 12/07/18 no 25% off usage 24 months no Click Energy Lilac 1/03/18 no 26% off bill no no Covau Smart Saver 1/02/18 no 16% off usage 12 months no Dodo Power & Market offer 23/02/18 no no no no Gas^ Energy Australia Anytime Saver 3/05/18 34% off usage no 12 months no Lumo Energy Advantage 18/04/18 no 15% off bill no no Momentum Energy Market offer 4/04/18 no no no no Origin Energy Saver 23/03/18 no 13% off usage 12 months no Red Energy Easy Saver 14/02/18 no 10% off bill no no Simply Energy Plus 4/04/18 no 26% off usage 24 months no Sumo Power Pay on time 1/05/18 no 25% off usage 12 months no Amaysim Gas 4 29/05/18 no 5% off bill no no GloBird Energy^ GloSave 1/05/18 no 24% off bill no no Powershop* Gas Saver 9/05/18 no 5% off bill no no

^ Additional discounts for direct debit, e-billing or dual fuel customers may apply *Powershop’s conditional discount is not based on pay on time but it does require customers to actively purchase special deals

42 Note that there are only 14 offers in the Ausnet/Tru West gas zone as Dodo does not offer gas market offers in this area. 43 These market offers are features have been published on the retailers’ websites between 1st and 19th of July 2018. 19 2.2.1 Potential savings - Differences between gas offers

Typical consumption households (63,000Mj per annum) on the worst standing offer can save $955 - $1,285 per annum if switching to the best published market offer (depending on their gas zone).

Charts 15 - 22 below show annual retail bills for typical consumption (63,000Mj per annum) for each of the eight main gas zones. The blue columns to the left represent the standing offer bill, the red columns are the market offers including guaranteed discounts (but not pay on time discounts) while the green columns are market offer bills including pay on time discounts.44 As only ten of the fifteen retailers offer gas as a stand alone product, figures 6 - 13 below, which rank gas market offers according to size of annual bill, do not include retailers that only offer gas in conjunction with electricity contracts.45

Multinet 1/Origin Metro Gas Zone

In the Origin Metro gas zone, average consumption households on the worst standing offer can save approximately $995 per annum if switching to the best published market offer. Alinta is the retailer with the best market offer rates in this gas zone, however, as Alinta only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Energy Australia’s (chart 15).

St an di ng Market (ex POT) Market (incl POT) Chart 15 Multinet 1/Origin Metro gas zone: Estimated annual bills 2,600 (incl GST) for gas standing and 2,400 market offers post July 2018, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 46 63,000Mj per annum 1,600 1,400 1,200 1,000 800

AGL Covau GloBi rd Amaysim Red Energy Powershop Al int a EnergyClick Energy Lumo Ener gy Sumo Power Origin Energy Si mply Ener gy EnergyAustralia Dodo Power & Ga s Momentum Energy Retail offers in Origin Metro gas zone

Figure 6 below shows estimated annual bills for stand-alone gas market offers post discounts in the Origin Metro gas zone. The difference between the best (Energy Australia) and the worst (Amaysim) is approximately $875 per annum.47

44 Based on market offer bills that include discounts and pay on time discounts. 45 As a retailer with good value gas rates can have expensive electricity rates (and vice versa), we seek to focus on retail offers available to customers independently from other products. 46 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 47 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between mid-July and mid-August 2017 and it must be noted that retailers may change their rates at any time. 20 Figure 6 Multinet 1/Origin Metro gas zone: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

Lumo Energy $1,388

Energy Australia $1,291

Red Energy $1,393

GloBird $1,408

AGL $1,429

Powershop $1,482

Origin Energy $1,513

Click Energy $1,686

CovaU $1,704

Amaysim $2,165

Multinet 2/AGL South Gas Zone

In the AGL South gas zone, average consumption households on the worst standing offer can save approximately $1,010 per annum if switching to the best published market offer. Alinta is again the retailer with the best market offer rates in this gas zone, however, as Alinta only offer gas in conjunction with an electricity contract it should again be noted that the best stand-alone gas offer is Energy Australia’s (chart 16).

St an di ng Market (ex POT) Market (incl POT) Chart 16 Multinet 2/AGL South gas zone: Estimated annual bills 2,600 (incl GST) for gas standing and 2,400 market offers post July 2018, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 63,000Mj per annum48 1,600 1,400 1,200 1,000 800

Figure 7 below shows estimated annual bills for stand-alone gas market offers post discounts in the AGL South gas zone. The difference between the best (Energy Australia) and the worst (Amaysim) is approximately $875 per annum.49

48 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 49 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. 21 Figure 7 Multinet 2/AGL South gas zone: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

Energy Australia $1,291

Red Energy $1,372

Lumo Energy $1,406

GloBird $1,408

AGL $1,438

Powershop $1,482

Origin Energy $1,513

Click Energy $1,686

CovaU $1,704

Amaysim $2,165

Envestra North/Origin North Gas Zone

In the Origin North gas zone, average consumption households on the worst standing offer can save approximately $1,125 per annum if switching to the best published market offer. Energy Australia is the retailer with the best market offer rates in this gas zone (chart 17).

St an di ng Market (ex POT) Market (incl POT) Chart 17 Envestra North/Origin North gas zone: Estimated annual 2,600 bills (incl GST) for gas standing 2,400 and market offers post July 2018, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 50 63,000Mj per annum 1,600 1,400 1,200 1,000 800

Figure 8 below shows estimated annual bills for stand-alone gas market offers post discounts in the Origin North gas zone. The difference between the best (Energy Australia) and the worst (Amaysim) is approximately $970 per annum.51

50 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 51 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. 22 Figure 8 Envestra North/Origin North gas zone: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

Energy Australia $1,310

Red Energy $1,456

AGL $1,456

Lumo Energy $1,481

Powershop $1,483

GloBird $1,508

Origin Energy $1,566

CovaU $1,650

Click Energy $1,777

Amaysim $2,281

Envestra Central 2/Tru East Gas Zone

In the Tru East gas zone, average consumption households on the worst standing offer can save approximately $1,260 per annum if switching to the best published market offer. Energy Australia is again the retailer with the best market offer rates in this gas zone (chart 18).

St an di ng Market (ex POT) Market (incl POT) Chart 18 Envestra Central 2/Tru East gas zone: Estimated annual 2,600 bills (incl GST) for gas standing 2,400 and market offers post July 2018, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 52 63,000Mj per annumm 1,600 1,400 1,200 1,000 800

Figure 9 below shows estimated annual bills for stand-alone gas market offers post discounts in the Tru East gas zone. The difference between the best (Energy Australia) and the worst (Amaysim) is approximately $950 per annum.53

52 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 53 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. 23 Figure 9 Envestra Central 2/Tru East gas zone: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

Energy Australia $1,310

AGL $1,385

Red Energy $1,433

Powershop $1,462

Lumo Energy $1,478

GloBird $1,508

Origin Energy $1,566

CovaU $1,631

Click Energy $1,759

Amaysim $2,258

Envestra Central 1/Origin South East Gas Zone

In the Origin South East gas zone, average consumption households on the worst standing offer can save $1,285 per annum if switching to the best published market offer. Energy Australia is the retailer with the best market offer rates in this gas zone (chart 19).

St an di ng Market (ex POT) Market (incl POT) Chart 19 Envestra Central 1/Origin South East gas zone: Estimated 2,600 annual bills (incl GST) for gas 2,400 standing and market offers post 2,200 July 2018, including discounts and 2,000 pay on time discounts - Households 1,800 54 consuming 63,000Mj per annum 1,600 1,400 1,200 1,000 800

AGL Covau GloBi rd Amaysim Red Energy Powershop Al int a EnergyClick Energy Sumo Power Lumo Ener gy Origin Energy Si mply Ener gy EnergyAustralia Dodo Power & Ga s Momentum Energy Retail offers in Origin South East gas zone

Figure 10 below shows estimated annual bills for stand-alone gas market offers post discounts in the Origin South East gas zone. The difference between the best (Energy Australia) and the worst (Amaysim) is approximately $950 per annum.55

54 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 55 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. 24 Figure 10 Envestra Central 1/Origin South East gas zone: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

Energy Australia $1,310

AGL $1,428

Red Energy $1,433

Powershop $1,462

Lumo Energy $1,466

GloBird $1,508

Origin Energy $1,566

CovaU $1,631

Click Energy $1,759

Amaysim $2,258

Ausnet/Tru West Gas Zone

In the Tru West gas zone, average consumption households on the worst standing offer can save approximately $955 per annum if switching to the best published market offer. Energy Australia is again the retailer with the best market offer rates in this gas zone (chart 20).

St an di ng Market (ex POT) Market (incl POT) Chart 20 Ausnet West/Tru West gas zone: Estimated annual bills 2,600 (incl GST) for gas standing and 2,400 market offers post July 2017, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 56 63,000Mj per annum 1,600 1,400 1,200 1,000 800

AGL Covau GloBi rd Amaysim Red Energy Powershop Click Energy Sumo Power Al int a Energy Lumo Ener gy Origin Energy Si mply Ener gy EnergyAustralia Momentum Energy Retail offers in Tru West gas zone

Figure 11 below shows estimated annual bills for stand-alone gas market offers post discounts in the Tru West gas zone. The difference between the best (Energy Australia) and the worst (Amaysim) is approximately $845 per annum.57

56 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 57 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. 25 Figure 11 Ausnet West/Tru West gas zone: Lowest to highest annual bills (incl GST) for offers post July 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

Energy Australia $1,268

GloBird $1,296

Powershop $1,334

Lumo Energy $1,362

Red Energy $1,370

AGL $1,372

Origin Energy $1,419

CovaU $1,527

Click Energy $1,645

Amaysim $2,112

Ausnet Central 2/AGL North Gas Zone

In the AGL North gas zone, average consumption households on the worst standing offer can save approximately $1,010 per annum if switching to the best published market offer. GloBird is the retailer with the best market offer rates in this gas zone (chart 21).

Chart 21 Ausnet Central 2/AGL St an di ng Market (ex POT) Market (incl POT) North gas zone: Estimated annual 2,600 bills (incl GST) for gas standing 2,400 and market offers post July 2018, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 63,000Mj per annum58 1,600 1,400 1,200 1,000 800

Figure 12 below shows estimated annual bills for stand-alone gas market offers post discounts in the AGL North gas zone. The difference between the best (GloBird) and the worst (Amaysim) is approximately $895 per annum.59

58 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 59 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. 26 Figure 12 Ausnet Central 2/AGL North gas zone: Lowest to highest annual bills (incl GST) for market offers post July 2017, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

GloBird $1,296

Energy Australia $1,347

Powershop $1,383

Lumo Energy $1,439

Red Energy $1,457

AGL $1,473

Origin Energy $1,484

CovaU $1,705

Click Energy $1,705

Amaysim $2,189

Ausnet Central 1/Tru Central Gas Zone

In the Tru Central gas zone, average consumption households on the worst standing offer can save approximately $1,010 per annum if switching to the best published market offer. GloBird is again the retailer with the best market offer rates in this gas zone (chart 22).

St an di ng Market (ex POT) Market (incl POT) Chart 22 Ausnet Central 1/Tru Central gas zone: Estimated annual 2,600 bills (incl GST) for gas standing 2,400 and market offers post July 2018, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 60 63,000Mj per annum 1,600 1,400 1,200 1,000 800

Figure 13 below shows estimated annual bills for stand-alone gas market offers post discounts in the Tru Central gas zone. The difference between the best (GloBird) and the worst (Amaysim) is approximately $895 per annum.61

60 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 61 Only retailers that offer stand-alone gas contracts have been included in this figure. These bill estimates are based on rates published on the retailers’ websites between 1st and 19th of July 2018 and it must be noted that retailers may change their rates at any time. 27 Figure 13 Ausnet Central 1/Tru Central gas zone: Lowest to highest annual bills (incl GST) for market offers post July 2018, including discounts and pay on time discounts - Households consuming 63,000Mj per annum

GloBird $1,296

Energy Australia $1,347

Powershop $1,383

Lumo Energy $1,439

Red Energy $1,457

AGL $1,473

Origin Energy $1,484

CovaU $1,705

Click Energy $1,705

Amaysim $2,189

As in the case of electricity, the ‘big 3’ retailers (AGL, Origin and Energy Australia) have various gas market offers where discounts and/or rates vary whether the offers contain fixed prices, guaranteed discounts, pay on time discounts, direct debit discounts etc. Chart 23 below compares all of AGL, Origin and Energy Australia’s offers in the Ausnet Central 2 gas zone for households using 63,000Mj per annum.62

The offer that produces the lowest bill is Energy Australia’s guaranteed discount product (‘Anytime Saver’) while AGL’s guaranteed discount product produces the highest bill (see red columns for guaranteed discount offers). In terms of the best AGL offer, it is the fixed rate with no discount product (orange column). Energy Australia also has a fixed rate product (the ‘Secure Saver’) but as this product also contains a pay on time discount, we have grouped this offer with other pay on time discount products (blue columns). Origin’s best offer is the ‘Maximiser’ product where the discount is conditional upon bills being paid by direct debit (grey columns).63

1,800

Chart 23 Estimated annual bills (incl 1,700

GST) for AGL, Origin and Energy 1,600 Australia’s gas market offers post July 2018 in Ausnet Cetral 2 gas zone - 1,500 Households consuming 63,000Mj per 1,400 annum 1,300

1,200 Annual bill ($) 1,100

1,000

900

800

AGL Savers Origin Saver AGL Everyday AGL Essentials Origin Bill SaverEA Flexi Saver EA Anytime Saver Origin Maximiser EA Secure Saver Origin Saver Online AGL Set and forget Origin Maximiser Online

62 This comparison does not include dual fuel offers. 63 This analysis shows that the AGL and Origin have offers that produce lower bills than the offers included in the main analysis above. However, as these products require payment by direct debit and/or online sign-up/e-billing, we continue to base our analysis on the pay on time products. 28 3. Solar offers

There are more than 310,000 small to medium scale solar systems in Victoria.64 Approximately 88,000 of these currently receive a solar feed in rate (FIT) of 60 cents per exported kWh (the premium FIT scheme.65 However, as this scheme is closed to new entrants, customers looking for solar offers need to assess both the retailers’ FIT rates as well as the cost of electricity imported. On 1 July 2018, a minimum FIT rate of 9.9 c/kWh was introduced by the Essential Services Commission (ESC) which was a decrease from the previous 11.3c/kWh minimum rate.66 From July 2018, retailers may also offer a time varying FIT rate set at a minimum of 7.1c/kWh at off-peak times 10.3c/kWh at shoulder times and 29c/kWh at peak times. However, as of 19 July 2018, none of the retailers had published time varying FIT rates.

This section analyses and compares market offer bills for Victorian customers with 1.5 kW and 3 kW systems installed. As retailers are not required to publish rates for solar products purchased and installed through them, this analysis only examines electricity offers available to customers independently of solar panels and installation.

Methodology and assumptions

To calculate the annual bills for the various solar market offers the following assumptions and methodology have been applied:

• An annual household consumption of 4,800kWh (including both produced and imported).

• Calculations have been produced for households with 1.5 kW and 3 kW systems only.

• For Melbourne households, an annual generation capacity per kW installed of 1.539 MWh and an export rate of 47.4% for 3 kW systems and 14.9% for 1.5 kW systems.67

• For non-metropolitan households, an annual generation capacity per kW installed of 1.789 MWh and an export rate of 54.8% for 3 kW systems and 26.8% for 1.5 kW systems.68

• Only FIT rates available to new customers have been included. Retailer funded FIT rates have been applied as per offer (see table 3 below).

• A flat annual consumption has been assumed.

• The annual bills have been based on quarterly bill calculations and all step increases have been applied as quarterly thresholds (including when the retail offer refers to daily or monthly thresholds). Daily fixed charges have been multiplied by 91 to calculate the quarterly amount.

64 Clean Energy Council, Clean Energy Australia Report 2016, 42 65 Approximately 88,000 households, small businesses and community groups are on the PFIT scheme and the 60 cents rate is set to last until 2024 see http://delwp.vic.gov.au/energy/electricity/victorian-feed-in-tariff/closed-feed-in-tariff-schemes/premium- feed-in-tariff 66 See https://www.esc.vic.gov.au/sites/default/files/documents/minimum-electricity-feed-in-tariffs-to-apply-from-1-July-2018- final-decision-20180227.pdf 67 These figures are based analysis presented in a report for the Alternative Technology Association (ATA) by Alviss Consulting (Alviss Consulting, Retail Offers and Market Transparency for New Solar Customers, June 2013). 20Forecast%20PV%20Capaci- ty%20&%20Tariff%20Payments.pdf 68 Ibid. 29 Table 3: Retailers’ FIT rates

Retailer* Offer FIT rate (c/kWh)

AGL Solar Savers 20

Alinta Energy Fair Deal 11.3

Click Energy Solar 18

Commander Market offer 11.6

Diamond Energy Pay on time discount 12

Dodo Power & Gas Dodo Electricity 11.6

EnergyAustralia Anytime Saver 9.9

GloBird Energy Glosave 10

Lumo Energy Advantage 11.3

Momentum Energy SmilePower 9.9

Origin Energy Solar Boost Plus 16

Tango Energy Home Select 11.3

Powerdirect Market offer 11.3

Powershop Power Saver 11.8

Red Energy Living Energy Saver 11.3

Simply Energy Plus 11.3

Sumo Power Pay on time 9.9

Amaysim Solar 4 18

Covau Smart Saver Solar 11.3

* 1st Energy, People Energy and Q Energy do not offer market offer contracts to solar customers in Victoria

Chart 24 below compares annual retail bills for solar customers in Melbourne (Citipower) with 3 kW and 1.5 kW installed. It shows that for this consumption level, the average market offer bill for households in this area with a 3 kW system installed is $660 and that is $825 less than the average market offer bill for non-solar customers (see chart 8 in section 2.1.1 above). The average annual bill for households with a 1.5 kW system installed is of $1,020.

Chart 24 also shows that, Dodo, Momentum, Covau, Commander and Diamond’s offers produce annual bills above the average for both 3 kW and 1.5 kW systems. Furthermore, AGL, Click Energy and Amaysim offer the highest FIT rates but they still produce bills that are higher than average for 1.5 kW systems. Melbourne (Citipower) solar customers with 1.5 kW systems (and this consumption level) would be approximately $440 per annum better off on Tango Energy’s offer compared to AGL’s. As AGL offers a relatively high FIT rate (20 cents) compared to Tango Energy’s FIT rate of 11.3 cents, this highlights the importance of solar customers not choosing retail offers based on FIT rates alone. Customers with a 3 kW system installed may save approximately $370 per annum if they switched from Click or Dodo’s offers to Tango Energy.

30 3 kW 1.5 kW 3 kW avg 1.5 kW avg Chart 24 Annual bills including discounts 1,300 and FIT credits for Melbourne/Citipower customers with 3 kW and 1.5 kW solar 1,100 systems. Electricity offers post July 2018 as annual bills, Single rate, 4,800kWh (GST 900 inc).69 700

500

300

100

AGL CovaU Amaysim Powershop Click EnergyCommander Powerdirect Red Energy Al int a Energy Lumo Ener gyOriginTango Energy Energy Sumo Power GloBird Energy Si mply Ener gy Dia mond EnerEnergyAustralia gy Dodo Power & Ga s Momentum Energy

Chart 25 below shows annual bills for Melbourne solar customers in the Jemena network. It shows that for this consumption level, the average market offer bill for households in this area with a 3 kW system installed is $710 and that is $885 less than the average market offer bill for non-solar customers (see chart 11 in section 2.1.1 above). The average annual bill for households with a 1.5 kW system installed is of $1,080.

3 kW 1.5 kW 3 kW avg 1.5 kW avg Chart 25 Annual bills including discounts and FIT credits for 1,500 Melbourne/Jemena customers with 1,300 3 kW and 1.5 kW solar systems. Electricity offers post July 2018 as 1,100 annual bills, Single rate, 4,800kWh (GST inc).70 900 700

500

300

100

AGL CovaU Amaysim PowershopRed Energy Click EnergyCommander Powerdirect Sumo Power Al int a Energy Lumo Ener gyOriginTango Energy Energy Si mply Ener gy EnergyAustraliaGloBird Energy Dia mond Ener gy Dodo Power & Ga s Momentum Energy

Chart 26 below shows annual bills for Melbourne solar customers in the United Energy network. It shows that for this consumption level, the average market offer bill for households in this area with a 3 kW system installed is $665 and that is $855 less than the average market offer bill for non-solar customers (see chart 12 in section 2.1.1 above). The average annual bill for households with a 1.5 kW system installed is of $1,035.

69 Calculations include discounts off usage or bill as well as pay on time discounts off usage or bill. 70 Ibid. 31 3 kW 1.5 kW 3 kW avg 1.5 kW avg Chart 26 Annual bills including 1,500 discounts and FIT credits for Melbourne/United Energy customers 1,300 with 3 kW and 1.5 kW solar systems. Electricity offers post July 2018 as 1,100 annual bills, Single rate, 4,800kWh 900 (GST inc).71 700

500

300

100

AGL CovaU Amaysim Powershop Click EnergyCommander Powerdirect Red Energy Al int a Energy Lumo Ener gyOriginTango Energy Energy Sumo Power EnergyAustraliaGloBird Energy Si mply Ener gy Dia mond Ener gy Dodo Power & Ga s Momentum Energy

Homes outside Melbourne’s metropolitan area will typically have less overshadowing and therefore a higher generation capacity and export rate. Chart 26 compares annual retail bills for non-metropolitan solar customers with 3 kW systems in four network areas (Jemena, United, Powercor and Ausnet). It shows that the average annual bill for non-metropolitan solar customers with this consumption level is approximately $560 in United Energy, $605 in Jemena, $660 in Powercor and $710 in Ausnet. The average annual bill is $960 to $1,030 lower than the annual bill for non-solar customers (see section 2.1.1 above for non-solar customers).

Jemena United Powercor Ausnet Chart 27 Annual bills including discounts 1,100 and FIT credits for non- 1,000 metropolitan customers 900 in Jemena, United Energy, Powercor and Ausnet 800 with 3 kW solar systems. 700 Electricity offers post 600 July 2018 as annual bills, Single rate, 4,800kWh 500 72 (GST inc). 400 300 200 100

Figures 14 - 18 below show estimated annual bills for solar market offers including FIT and discounts for Melbourne customers in Citipower, Jemena and United Energy’s networks and non-metropolitan customers in the Powercor and Ausnet networks (all based on 3 kW systems).73

71 Ibid. 72 Ibid. 73 These market offers were collected between 1st and 19th of July 2018and it should be noted that retailers may change their rates at any time. Additional discounts for customers choosing to pay by direct debit are not included in these bill calculations. 32 Figure 14 Lowest to highest annual bills (incl GST) for solar market offers post July 2018, including discounts and pay on time discounts – Melbourne households in the Citipower network with 3kW systems installed and consuming 4,800kWh annum (including both produced and imported), single rate

Tango Energy $480

GloBird $533

Alinta $534

Red Energy $607

Lumo Energy $608

Powershop $610

Simply Energy $613

Powerdirect $632

Origin Energy $633

Sumo Power $640

Click Energy $652

Amaysim $652

AGL $683

Diamond Energy $701

Energy Australia $710 Commander Electricity $722

CovaU $815 Momentum Energy $849 Dodo Power & Gas $852

33 Figure 15 Lowest to highest annual bills (incl GST) for solar market offers post July 2018, including discounts and pay on time discounts – Melbourne households in the Jemena network with 3kW systems installed and consuming 4,800kWh annum (including both produced and imported), single rate

Tango Energy $521

GloBird $533

Alinta $589

Simply Energy $637

Origin Energy $646

Red Energy $647

Powershop $649

Lumo Energy $654

Click Energy $662

Amaysim $662

Sumo Power $666

Powerdirect $709

Energy Australia $744

Diamond Energy $750

AGL $789 Commander Electricity $839

CovaU $869 Momentum Energy $892 Dodo Power & Gas $997

34 Figure 16 Lowest to highest annual bills (incl GST) for solar market offers post July 2018, including discounts and pay on time discounts – Melbourne households in the United Energy network with 3kW systems installed and consuming 4,800kWh annum (including both produced and imported), single rate

GloBird $488

Tango Energy $491

Alinta $544

Sumo Power $579

Lumo Energy $595

Powershop $604

Red Energy $608

Simply Energy $608

Click Energy $610

Amaysim $610

Origin Energy $629

Powerdirect $641

AGL $711

Diamond Energy $719

Energy Australia $725 Commander Electricity $794

CovaU $856 Momentum Energy $863 Dodo Power & Gas $940

35 Figure 17 Lowest to highest annual bills (incl GST) for solar market offers post July 2018, including discounts and pay on time discounts – Non-Metropolitan households in the Powercor network with 3kW systems installed and consuming 4,800kWh annum (including both produced and imported), single rate

Tango Energy $462

GloBird $502

Alinta $514

Lumo Energy $588

Simply Energy $594

Red Energy $605

Powershop $608

Click Energy $623

Amaysim $623

AGL $628

Powerdirect $629

Origin Energy $639

Sumo Power $652

Energy Australia $732

Diamond Energy $736 Commander Electricity $775

CovaU $815 Momentum Energy $890 Dodo Power & Gas $933

36 Figure 18 Lowest to highest annual bills (incl GST) for solar market offers post July 2018, including discounts and pay on time discounts – Non-Metropolitan households in the Ausnet network with 3kW systems installed and consuming 4,800kWh annum (including both produced and imported), single rate

Tango Energy $535

GloBird $546

Alinta $600

Sumo Power $634

Simply Energy $637

Lumo Energy $637

Powerdirect $645

Red Energy $647

Powershop $648

AGL $664

Click Energy $668

Amaysim $668

Origin Energy $676

Energy Australia $763

Diamond Energy $769

CovaU $871 Commander Electricity $876 Momentum Energy $921 Dodo Power & Gas $1,052

37 4. Cost components and bill-stack analysis

Electricity bills are made up of several components, including generation (wholesale market) costs, network costs (distribution and transmission), “green schemes” and costs associated with other public policy initiatives, and retail costs.

To estimate the wholesale cost, we have relied on both the AEMC’s annual price trend report for 2017.

Table 4 Wholesale costs in Victoria ($/MWh) from 2016/17 to 2018/19 Energy Purchase Cost* 2016/17 $91.84 2017/18 $132.74 2018/19 $105.40

* Estimated energy purchase cost for 2016/17, 2017/18 and 2018/19 (financial years). Based on Figure 24 in Frontier Economics, 2017 Residential Electricity Price Trends Report, A report prepared for the AEMC December 2018, 59. Note that the AEMC has supplied the numbers that the base case scenario in Figure 24 is based on.

The AEMC’s Residential Electricity Price Trends report have also been used as a source to estimate “green scheme” costs for Victoria.74 Table 5 below shows the cost of “green schemes” used for this analysis.

Table 5 AEMC estimated “Green scheme” costs (c/kWh) from 2016/17 to 2018/19

Green Schemes (c/kWh) 2016/17 2.16 2017/18 1.84 2018/19 1.88

The Victorian electricity networks introduce new Network Use of System (NUOS) charges in January every year. These NUOS charges are approved by the Australian Energy Regulator (AER) and comprise Transmission Use of System (TUOS) and Distribution Use of System (DUOS) as well as other costs such as jurisdictional charges.

The NUOS charges consist of both usage charges (c/kWh) and a fixed supply charge (c/day) and in January 2018, the NUOS decreased in Powercor, Ausnet and Jemena, increased in United Energy and remained unchanged in the Citipower network. Another significant cost component of Victorian electricity bills are ‘smart meter’ costs. This cost is approved by the AER and households currently pay between $57 and $83 per annum (depending on network area) for the mandated meter roll-out.75

In order to examine what households actually pay for the various services (and policies) that are costed by the supply chain and passed on to consumers in the form of a retail bill, tables 6 – 8 below estimate the retail component of bills for standing offer customers, market offer customers and new solar market offers. All tables are based on households consuming 4,800 kWh per annum at a single rate tariff.

By deducting GST, NUOS costs, wholesale costs, the cost of environmental policies (“green schemes”) and the cost of rolling out smart meters, amounts in the final row represent the estimated retail component (retail costs and profits). On average, across all five network areas, the estimated retail component is approximately $770 per annum for standing offer customers, $310 for market offer customers (including

74 See AEMC, Residential Electricity Price Trends Reports, 2017, Figure E3, 122. 75 AER, Advanced Metering Infrastructure, Transition Charges Applications, Final Decision December 2016, Table 1.2 at https:// www.aer.gov.au/system/files/AER%20-%20Final%20decision%20-%20AMI%20transition%20charges%20applications%20-%20 December%202016_5.pdf 38 pay on time discounts) and $20 for solar customers (including pay on time discounts).76

Table 6 Deduction of bill components for standing offers, average annual bill based on offers effective as of July 2018 (4,800kWh per annum, single rate77

Citipower Powercor Ausnet Jemena United Retail bill incl. GST^ 1,982 2,148 2,250 2,097 2,031 Retail bill excl. GST 1,802 1,953 2,045 1,906 1,846 Retail bill excl. GST and NUOS* 1,409 1,483 1,454 1,467 1,397 Retail bill excl. the above and whole-sale^^ 903 977 948 961 891 Retail bill excl. the above and ‘Green 813 887 858 871 801 Schemes’** Retail bill excl. the above and smart meter 734 815 775 788 744 costs***

^ Based on the three incumbents average standing offers (July 2018) * NUOS as of January 2018 ^^Based on $105.4/MWh **LRET @ 0.88 c/kWh, SRES @ 0.33 c/kWh, FIT @ 0.38 c/kWh and VEET @ 0.29 c/kWh ***Based on AER estimated AMI charges for 2018

Table 7 Deduction of bill components for market offers (including pay on time discounts), average annual bill based on effective as of July 2018 (4,800kWh per annum, single rate)

Citipower Powercor Ausnet Jemena United Retail bill incl. GST^ 1,472 1,629 1,745 1,595 1,526 Retail bill excl. GST 1,338 1,481 1,586 1,450 1,387 Retail bill excl. GST and NUOS* 946 1,012 995 1,011 938 Retail bill excl. the above and whole-sale^^ 440 506 489 505 432 Retail bill excl. the above and ‘Green 350 415 399 415 342 Schemes’** Retail bill excl. the above and smart meter 271 343 316 332 285 costs***

76 Note that this is based on components of customers’ bills and not retailers’ revenue from each customer type. The energy exported by solar customers does, for example, have a value to the retailers. Other charges such as market fees and ancillary service fees as well as losses have not been accounted for in this bill-stack. Market fees are approximately $0.35/MWh and ancillary services is $0.18/MWh. The loss factor varies between network areas and is highest in the large rural networks (Ausnet and Powercor). 77 This table is based on the same offers used for July 2018 in chart 1 above. 39 Table 8 Deduction of bill components for solar market offers (including pay on time discounts), average annual bill based on offers effective as of July 2018 (4,800kWh per annum, single rate), Metropolitan households with 3kW system installed

Citipower Powercor Ausnet Jemena United Retail bill incl. GST^ 663 766 814 712 668 Retail bill excl. GST 603 696 740 647 607 Retail bill excl. GST and NUOS* 366 402 403 408 373 Retail bill excl. the above and whole-sale^^ 116 152 153 158 123 Retail bill excl. the above and ‘Green 72 107 109 114 78 Schemes’** Retail bill excl. the above and smart meter -7 35 26 31 21 costs***

Based on the calculations in tables 6 – 8 above, charts 28 – 30 show the estimated bill proportion (%) of each cost for standing offer, market offer and solar customers

NUOS Wholesale Retail Green Schemes Smart meters Chart 28 Bill-stack (%) for standing offers, average 4 4 4 4 3 annual bill based on offers 5 5 4 5 5 effective as of July 2018 (4,800kWh per annum, single rate) 38 41 42 41 40

25 28 26 27 27

29 22 24 23 24

CITIPOWER POWERCOR AUSNET JEMENA UE

40 NUOS Wholesale Retail Green Schemes Smart meters Chart 29 Bill-stack (%) for market offers, average 5 5 4 annual bill based on offers 6 6 6 6 7 (inclusive of pay on time 7 6 discounts) effective as of 20 21 July 2018 (4,800kWh per 20 23 23 annum, single rate)

32 36 38 34 35

37 29 32 30 32

CITIPOWER POWERCOR AUSNET JEMENA UE

Chart 30 Bill-stack (%) NUOS Wholesale Retail Green Schemes Smart meters for solar market offers (including pay on time 9 13 10 11 13 discounts), average 6 7 6 7 annual bill based on 7 5 4 4 offers effective as of 5 July 2018 (4,800kWh per annum, single 34 36 41 rate), Metropolitan 41 39 households with 3kW system installed

42 45 39 37 39

-1 CITIPOWER POWERCOR AUSNET JEMENA UE

In terms of changes over time, the average NUOS proportion of bills has decreased for standing offer bills (charts 31 below) while the retail proportion has increased significantly over the last year. For solar bills (chart 33 below), the retail component drastically decreased last year before increasing again this year.78

78 These calculations are based on estimated wholesale costs and ‘green scheme’ costs as per tables 5 and 6 above. 41 NUOS Wholesale Retail Green Schemes Smart meters Chart 31 Bill-stack (%) for average standing offer bills 100% 5 4 4 4 4 (across all five network 5 areas), from July 2016 to 90% July 2018 (4,800kWh per 80% annum, single rate)79 36 70% 38 45

60%

50%

40% 25 32 25

Proportion of annual bill 30%

20%

27 24 10% 23

0% Jul-16 Jul-17 Jul-18

NUOS Wholesale Retail Green Schemes Smart meters Chart 32 Bill-stack (%) for average market offer bills 100% 6 4 5 (across all five network 5 6 6 areas), from July 2016 to 90% July 2018 (4,800kWh per 80% annum, single rate)80 26 27 29 70%

60%

50% 29 37 32 40%

Proportion of annual bill 30%

20% 32 28 29 10%

0% Jul-16 Jul-17 Jul-18

79 Bills based on the three incumbent retailers’ offers in each network area. 80 Bills based on all retailers in each network area and are inclusive of pay on time discounts. 42 NUOS Wholesale Retail Green Schemes Smart meters Chart 33 Bill-stack (%) for average solar offer 100% 12 10 10 bills (across all five 90% network areas), from 5 5 6 July 2016 to July 2018 80% 5 13 (4,800kWh per annum, 20 single rate)81 70%

60% 42 34 50% 28

40%

Proportion of annual bill 30%

20% 35 37 37 10%

0% Jul-16 Jul-17 Jul-18

81 Bills based on all retailers in each network area and are inclusive of pay on time discounts. We have assumed that the households have a 3kW system installed and is located in an urban area (some overshadowing). 43 5. Total cost of energy by area

As approximately 60% of Victorian households are connected to both electricity and gas, it is important to analyse whether there are areas that have experienced high increases in both electricity and gas prices, and conversely, whether there are areas where the increases in electricity and gas prices are low. Such analysis allows for a more detailed understanding of the total energy costs faced by households across Victoria. However, as only a few retailers have gazetted new standing offers since the last update report in January 2018 (see section 1 above), the analysis presented below focuses on energy costs per annum rather than increases.82 This section highlights the combined energy costs for average consumption households as well as the difference between standing offer and market offer bills in the different electricity and gas zones.

Table 9 Average annual bills (rounded) for electricity standing offer customers and market offer customers by area, post July 2018, single rate, 4800kWh per annum

Area Average Average Difference standing offer^ market offer* Inner city and Eastern suburbs (Citipower) $1,928 $1,466 $462 Outer Western suburbs and Western Victoria $2,148 $1,622 $526 (Powercor) Outer Northern and Eastern suburbs and Eastern $2,250 $1,738 $515 Victoria (SP Ausnet) Inner West and Northern suburbs (Jemena) $2,097 $1,588 $509 Outer South Eastern suburbs and Mornington $2,031 $1,520 $511 Peninsula (United Energy)

^ Average annual bill based on the three incumbents’ standing offers * Average annual bill based on all retailers’ market offers post discounts/pay on time discount

Table 10 Average annual bills (rounded) for gas standing offer customers and market offer customers by area, post July 2018, 63,000Mj per annum

Area Average Average Difference standing offer^ market offer* Eastern and South Eastern suburbs (Origin Metro $1,789 $1,530 $259 zone) Bayside and outer South Eastern suburbs (AGL $1,790 $1,525 $265 South zone) Northern and North Eastern Victoria (Origin North $1,831 $1,567 $264 zone) CBD, inner city and North Eastern suburbs (TRU $1,800 $1,555 $245 East zone) Frankston, Mornington Peninsula and Gippsland $1,818 $1,566 $252 (Origin South East zone) Macedon Ranges, Bendigo, Ballarat and Western $1,702 $1,443 $259 Victoria (TRU West zone) Western and North Western suburbs (AGL North $1,814 $1,544 $270 zone) Outer Western suburbs, Geelong and Bellarine $1,818 $1,543 $275 Peninsula (TRU Central zone)

^ Average annual bill based on the three incumbents’ standing offers * Average annual bill based on all retailers’ market offers post discounts/pay on time discount

82 The Victorian Tariff-Tracking update report published in January 2018 shows increases. 44 5.1 Inner city, inner North and Eastern suburbs

• Market offer customers with an average consumption of electricity and gas in Melbourne (CBD), Brunswick, Carlton, Fitzroy, Northcote, Richmond and Collingwood will typically pay $3,020 in energy costs this year.83 Households on the standing offer, however, will typically pay $3,730.84

• Market offer customers with an average consumption of electricity and gas in the inner Eastern suburbs of Kew, Hawthorn, Camberwell and Balwyn, and the inner South-East areas of South Yarra, Prahran, Armadale, Toorak and Caulfield, will typically pay $2,995 in energy costs this year.85 Households on the standing offer, however, will Source: Citipower typically pay $3,715.86

• Market offer customers with an average consumption of electricity and gas in the inner-city bay side suburbs of St Kilda, Port Melbourne, Albert Park and South Melbourne will typically pay $2,990 in energy costs this year.87 Households on the standing offer, however, will typically pay $3,720.88

5.2 Inner West and North Western Suburbs

• Market offer customers with an average consumption of electricity and gas in Footscray, Yarraville, Williamstown, Flemington, Moonee Ponds, Broadmeadows, Coolaroo, Braybrook and Sydenham will typically pay $3,130 in energy costs this year.89 Households on the standing offer, however, will typically pay $3,910.90

• Market offer customers with an average consumption of electricity and gas in Heidelberg, Fairfield, Ivanhoe, Bundoora, Thomastown, Preston, Reservoir will typically pay $3,145 in energy costs this year.91 Households on the standing offer, however, will typically pay $3,900.92

Source: Essential Services Commission

83 These are households in Citipower’s electricity distribution network and Envestra’s TRU East gas zone. Bill calculations based on average electricity and gas market offers including guaranteeddiscounts and pay on time discounts. Dual fuel gas offers are not included. 84 Bill calculations based on the three incumbent’s standing offers. 85 These are households in Citipower’s electricity distribution network and Multinet’s Origin Metro gas zone. Bill calculations based on average electricity and gas market offers including guaranteeddiscounts and pay on time discounts. Dual fuel gas offers are not included. 86 Bill calculations based on the three incumbent’s standing offers. 87 These are households in Citipower’s electricity distribution network and Multinet’s AGL South gas zone. Bill calculations based on average electricity and gas market offers including guaranteeddiscounts and pay on time discounts. Dual fuel gas offers are not included. 88 Bill calculations based on the three incumbent’s standing offers. 89 These are households in Jemena’s electricity distribution network and SP Ausnet’s AGL North gas zone. Bill calculations based on average electricity and gas market offers including guaranteeddiscounts and pay on time discounts. Dual fuel gas offers are not included. 90 Bill calculations based on the three incumbent’s standing offers. 91 These are households in Jemena’s electricity distribution network and Envestra’s TRU East gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 92 Bill calculations based on the three incumbent’s standing offers. 45 5.3 South Eastern suburbs and Mornington Peninsula

• Market offer customers with an average consumption of electricity and gas in the bayside suburbs of Elwood, Elsternwick, Brighton, Sandringham, Beaumaris, Chelsea and South-Eastern Suburbs of Bentleigh, Moorabbin, Springvale, Noble Park, Keysborough will typically pay $3,045 in energy costs this year.93 Households on the standing offer, however, will typically pay $3,820.94

• Market offer customers with an average consumption of electricity and gas in the suburbs of Seaford and Frankston and on the Mornington Peninsula will typically pay $3,085 in energy costs this year.95 Households on the standing offer, however, will typically pay $3,850.96

• Market offer customers with an average consumption of electricity and gas in the Eastern suburbs of Bulleen, Templestowe, Box Hill, Doncaster, Mitcham, Vermont, Glen Waverly and Chadstone will typically pay $3,050 in energy costs this year.97 Households on the standing offer, however, Source: Essential Services Commission will typically pay $3,820.98

5.4 Outer Western suburbs and Western Victoria

The annual cost of electricity for all-electric households with an average consumption will typically be $2,000 for market offer customers.99 Customers on the standing offer, however, will pay $2,645.100

In the Western region, dual fuel households with an average consumption of electricity and gas will typically pay:

• $3,165 if on market offers in Hoppers Crossing, Werribee, Geelong region and on the Bellarine peninsula.101 Households on the standing offer, however, will typically pay $3,965.102

• $3,065 if on market offers in Macedon, Kyneton, Ballarat, Colac, Warrnambool, Portland, Hamilton, Horsham, Source: Powercor

93 These are households in United Energy’s electricity distribution network and Multinet’s AGL South gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 94 Bill calculations based on the three incumbent’s standing offers. 95 These are households in United Energy’s electricity distribution network and Envestra’s Origin South East gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 96 Bill calculations based on the three incumbent’s standing offers. 97 These are households in United Energy’s electricity distribution network and Multinet’s Origin Metro gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 98 Bill calculations based on the three incumbent’s standing offers. 99 Bill calculations based on average electricity market offer including guaranteed discounts and pay on time discounts for households taking controlled load off-peak (annual consumption of 7000 kWh, 70% peak and 30% off-peak). 100 Bill calculations based on the three incumbent’s standing offers. 101 These are households in Powercor’s electricity distribution network and SP Ausnet’s TRU Central gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 102 Bill calculations based on the three incumbent’s standing offers. 46 Ararat and Daylesford.103 Households on the standing offer, however, will typically pay $3,850.104

• $3,190 if on market offers in Northern Victorian towns such as Echuca, Shepparton and Heathcote.105 Households on the standing offer, however, will typically pay $3,980.106

5.5 Outer Northern and Eastern suburbs and Eastern Victoria

The annual cost of electricity for all-electric households with an average consumption will typically be $2,175 for market offer customers.107 Customers on the standing offer, however, will pay $2,750.108

In the Eastern region, dual fuel households with an average consumption of electricity and gas will typically pay:

• $3,270 if on market offers in the Outer Northern and Eastern suburbs of Warrandyte, Ringwood, Chirnside Park and the area around Mount Dandenong.109 Households on the standing offer, however, will typically pay $4,040.110 Source: Essential Services Commission

• $3,305 if on market offers in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga.111 Households on the standing offer, however, will typically pay $4,080.112

• $3,305 if on market offers in the La Trobe Valley and Sale in the Gippsland region.113 Households on the standing offer, however, will typically pay $4,070.114

103 These are households in Powercor’s electricity distribution network and SP Ausnet’s TRU West gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 104 Bill calculations based on the three incumbent’s standing offers. 105 These are households in Powercor’s electricity distribution network and Envestra’s Origin North gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 106 Bill calculations based on the three incumbent’s standing offers. 107 Bill calculations based on average electricity market offer including guaranteed discounts and pay on time discounts for households taking controlled load off-peak (annual consumption of 7000 kWh, 70% peak and 30% off-peak). 108 Bill calculations based on the three incumbent’s standing offers. 109 These are households in Ausnet’s electricity distribution network and Multinet’s Origin Metro gas zone. Bill calculations based on average electricity and gas market offers including guaranteeddiscounts and pay on time discounts. Dual fuel gas offers are not included. 110 Bill calculations based on the three incumbent’s standing offers. 111 These are households in Ausnet’s electricity distribution network and Envestra’s Origin North gas zone. Bill calculations based on average electricity and gas market offers including guaranteeddiscounts and pay on time discounts. Dual fuel gas offers are not included. 112 Bill calculations based on the three incumbent’s standing offers. 113 These are households in Ausnet’s electricity distribution network and Envestra’s Origin South East gas zone. Bill calculations based on average electricity and gas market offers including guaranteed discounts and pay on time discounts. Dual fuel gas offers are not included. 114 Bill calculations based on the three incumbent’s standing offers. 47