Victorian Energy Prices January 2019

An update report on the Victorian Tariff-Tracking Project Victorian Energy Prices January 2019 An Update report on the Victorian Tariff-Tracking Project

May Mauseth Johnston, February 2019 Alviss Consulting Pty Ltd

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

Cover photo: Kim Walvisch (@sublurb on Instagram)

© 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 January 2019, and developed a spreadsheet based tool that allows consumer advocates to build on the initial analysis and continue to track changes as they occur. In 2016, market offers available to new solar customers were added to the Tariff-Tracking project. 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- January 2019 Workbook 2: Gas standing offers July 2008- January 2019 Workbook 3: Electricity market offers 2010 to 2019 Workbook 4: Gas market offers 2010 to 2019 Workbook 5: Solar market offers 2016 to 2019

The five workbooks can be accessed at the St Vincent de Paul Society Victoria’s websitewww.vinnies.org. au/energy Contents The Victorian Tariff-Tracking Project Key findings 1 1. Changes to the standing offers 3 1.1 Electricity standing offers January 2018 – January 2019 3 1.2 Gas standing offers January 2018 – January 2019 9 2. Market offers 11 2.1 Electricity market offers post July 2018 11 2.2 Gas market offers January 2019 25 2.3 Solar market offers January 2019 38 Methodology and assumptions 38 3. Electricity network charges 44 4. Comparing all market offers 45 5. Total cost of energy and price changes by area 52 5.1 Inner city, inner North and Eastern suburbs 53 5.2 Inner West and North Western Suburbs 54 5.3 South Eastern suburbs and Mornington Peninsula 54 5.4 Outer Western suburbs and Western Victoria 55 5.5 Outer Northern and Eastern suburbs and Eastern Victoria 55 Key findings

• Most of the Victorian retailers gazetted new standing offers that took effect in early January 2019. Two of the three incumbent retailers, Origin Energy and Energy Australia, did not change their electricity standing offer prices in January 2019. AGL, on the other hand, decreased their electricity standing offer prices by -2% on average.1

• For gas, Energy Australia’s standing offer prices have increased by 4-5% while AGL’s prices have decreased slightly. Origin Energy’s prices remained unchanged.

• Sumo Power continues to be the retailer with the highest electricity standing offers in all network areas. Click Energy and Amaysim have the highest gas standing offer prices.

• Analysis presented in section 1 shows that many of the retailers (13 out of 23) have not changed their electricity standing offer prices since January 2018. Covau, GloBird and Diamond Energy, however, are the retailers with the greatest increases while Sumo, Powershop, AGL and Powerdirect reduced their standing offer electricity prices across all network areas.

• Households with typical electricity consumption can save up to $1,800 - $2,270 per annum (depending on their network area) if switching from the worst standing offer to the best market offer.2 See section 2.1.

• The difference between thebest and the worst market offers ranges from $700 per annum (in Citipower’s area) to $950 (in Ausnet’s area) for customers with typical consumption levels.3 See section 2.1.1.

• Tango Energy’s market offers produce the lowest annual bill for average consumption households in all network areas. Dodo, on the other hand, has the most expensive market offer in all network areas.4 See section 2.1.1.

• While some retailers did not change their electricity market offers in January 2019, some decreased their rates while others increased theirs. Q Energy, GloBird and Alinta are the retailers with the greatest price increases while Simply, AGL, Powerdirect, Lumo, 1st Energy and Amaysim had the greatest price decreases. See section 2.1.2.

• Gas customers with typical consumption (63,000Mj) can save up to $670 - $1,050 per annum (depending on their gas zone) if switching from the worst standing offer to the best market offer.5 See section 2.2.

• The price-spread for gas market offers ranges from $310 per annum (Ausnet West/Tru West gas zone) to $570 (Multinet 1/Origin Metro gas zone) for customers with typical consumption levels.6 See section 2.2.1.

1 Note that all three retailers now offer additional discounts to some (concession card holders) or all standing offer customers that are not included in their standing offer rates. See November 2018 media releases from Origin:https://www.originenergy. com.au/about/investors-media/media-centre/origin_continues_price_relief_for_victorian_customers.html, AGL: https://www. agl.com.au/about-agl/media-centre/asx-and-media-releases/2018/november/agl-announces-safety-net-for-electricity- customers and Energy Australia: https://www.energyaustralia.com.au/about-us/media/news/energyaustralia-concession- customers-receive-automatic-discounts. 2 Based on the worst of the retailers’ standing offer (single rate) and the best of the published market offersincluding ( guaranteed discounts and/or pay on time discounts). 3 Households using 4,800kWh per annum (single rate) and all market offer bills include guaranteed discounts and pay on time discounts. Discounts that require payments to be made by direct debit are not included. 4 Ibid. 5 Based on the worst of the retailers’ standing offer and the best of the published market offersincluding ( dual fuel offers, guaranteed discounts and/or pay on time discounts). 6 Bill calculations based on average electricity (4,800kWh) market offers including guaranteed discounts and pay on time discounts. 1 • Energy Australia, Alinta, Momentum and Covau are the retailers that increased their gas prices the most in January 2019 while Amaysim had the greatest price decreases. See section 2.2.2.

• New solar customers with a 3kW system installed will have an annual bill that is between $665 and $865 less (depending on network area) than non-solar customers with the same consumption level.7 See section 2.3.

• The maximum price-spread is around $515 in Ausnet, $475 in Jemena and Powercor’s areas, $460 in United Energy and $420 in Citipower.8 See section 2.3.

• In January 2019, the regulated electricity network charges increased in all network areas except for the Jemena and United Energy networks. The greatest increase was in the Ausnet network (5%). See section 3.

• As a proportion of electricity bills, the network charge component is currently highest in Ausnet (28%) and lowest in Citipower, Jemena and United Energy (21%).9 See section 3.

• Section 4 compares all published electricity and gas market offers as of January 2019. As such it includes offers with various conditions such as direct debit payments, membership of sports clubs or frequent flyer programs, as well as other conditions).10 Twenty-two retailers offer 67 electricity market offers in the Citipower network and fifteen of these offers require payment by direct debit. Only five of the offers have guaranteed (non-conditional) discounts while over half of the offers (35) have a conditional pay on time discount. Furthermore, monthly billing is becoming an increasingly common feature of market offers andtwenty-six of the offers require customers to pay monthly instead of quarterly. See section 4.

• Dual fuel standing offer customers in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga, continue to have the highest average annual combined energy bills. Based on typical consumption levels, the average combined annual energy bill in these areas is now almost $4,100.11

7 Bill calculations based on average electricity (4,800kWh) market offers including guaranteed discounts and pay on time discounts. 8 Based on the worst and the best of the published market offers for single rate customers using 4,800 kWh per annum and a 3kW solar system installed. Bills include additional discounts and/or pay on time discounts and FIT, 3kW solar system. 9 The annual Network Use of System Charges (NUOS) have been calculated by allocating 1,200kWh per quarter (again based on annual consumption of 4,800kWh) to the step charges stipulated in the NUOS. The annual NUOS cost also includes fixed charges. Note that as United Energy’s NUOS charge has been a seasonal tariff over the last four years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate. NUOS charges do not include smart metering costs. 10 The standard analysis of market offers in the Tariff-Tracking reports do not include offers where the customer is required to pay by direct debit or be a member of a program/organisation. It also only includes one offer for each retailer. 11 Bill calculations are based on the incumbent retailers’ average standing offer for electricity and gas customers for dual fuel households using 4800kWh and 63,000Mj per annum in the Ausnet electricity network and AGN North/Origin North gas zone. 2 1. Changes to the standing offers

Most of the Victorian retailers gazetted new standing offers that took effect in early January 2019 and this section compares these new standing offer rates to those that took effect in January 2018.

1.1 Electricity standing offers January 2018 – January 2019

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.12 These are generally households connected to mains gas and therefore have a lower consumption than all- electric households. For all- electric households, which are predominantly in rural areas, the bill calculations have assumed an average consumption of 7,000kWh per annum. The rates used in the calculations are those for the controlled load offers and a split of 70% peak and 30% off-peak has been assumed. There are five network businesses in Victoria: Powercor and Ausnet distributing electricity to rural and regional Victoria and Citipower, Jemena and United Energy.

Two of the three incumbent retailers, Origin Energy and Energy Australia, did not change their electricity standing offer prices in January 2019. AGL, on the other hand, decreased their electricity standing offer prices by -2% on average.13 Charts 1 - 3 below show the incumbent retailers’ electricity standing offer as of January 2018 and January 2019.

On average, AGL decreased its standing offer prices by -2%. AGL is the incumbent retailer in the Jemena and United Energy networks and standing offer customers with an annual consumption of 4,800 kWh (single rate) will experience an annual decrease of $35 (or -1.8%) in Jemena and $30 (or -1.6%) in United Energy’s area.

Jan'18 Jan'19 Chart 1 Changes to AGL’s standing offers (as annual bills, inc GST) from 2,400 January 2018 to January 2019 - Calculations based on single rate tariff 2,200 and annual consumption of 4,800kWh

2,000

1,800 $ per annum 1,600

1,400

1,200 CP PC AUS JEN UE Network areas

Origin and Energy Australia’s electricity standing offer prices have remained unchanged since January 2018. See charts 2 and 3.

12 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. 13 Note that all three retailers now offer additional discounts to some standing offer customers that are not included in their standing offer rates. AGL and Origin offer additional discounts to all standing offer customers while Energy Australia offer additional discounts to all concession card holders on standing offer tariffs. See FN 1 above. 3 Jan'18 Jan'19 Chart 2 Changes to Origin’s 2,400 standing offers (as annual bills, inc GST) from January 2018 to January 2019 - 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 CP PC AUS JEN UE Network areas

Jan'18 Jan'19

Chart 3 Changes to Energy 2,400 Australia’s standing offers (as annual bills, inc GST) from January 2018 to January 2019 - 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 CP PC AUS JEN UE Network areas

As highlighted in the previous update report on the Victorian Tariff-Tracker project, some retailers place customers on their standing offer rates when the market offer’s ‘benefit period’ expires and it is therefore important that market offer customers are aware of retailers with very high standing offer rates.14 The difference between standing offer prices are even greater when comparing all 23 retailers as of January 2019. The difference between the worst and the best standing offer is highest in the Ausnet network where the difference is approximately $1,700 per annum for a medium consumption household (down from $2,150 in January 2018). In Jemena the difference is $1,535, in Powercor it is $1,390, in Citipower’s network areas the difference is around $1,230, and in United Energy’s network area the maximum difference is $1,210. Sumo Power continues to be the retailer that produces the highest standing offer bills in all network areas. The three incumbent retailers’ standing offers are all in the middle-band of most network areas.

Charts 4 – 8 below show retailers current annual standing offer bills for each of the five network areas.15

14 St Vincent de Paul Society and Alviss Consulting, The NEM -A hazy retail maze, December 2016. 15 Tango Energy was previously known as Pacific Hydro. 4 Chart 4 Standing offers in the Citipower network (as annual bills, inc GST), January 2019 - Calculations based on single rate tariff and annual consumption of 4,800kWh

SUMO POWER 2,943 GLOBIRD ENERGY 2,547 1ST ENERGY 2,379 PEOPLE ENERGY 2,348 LUMO ENERGY 2,225 COVAU 2,179 POWERSHOP 2,137 SIMPLY ENERGY 2,077 BLUE NRG 2,026 ENERGYAUSTRALIA 2,005 DIAMOND ENERGY 1,955 ORIGIN ENERGY 1,894 POWERDIRECT 1,855 AGL 1,855 RED ENERGY 1,839 AMAYSIM 1,825 CLICK ENERGY 1,825 ALINTA ENERGY 1,800 Q ENERGY 1,782 DODO POWER & GAS 1,775 COMMANDER 1,768 TANGO ENERGY 1,757 MOMENTUM ENERGY 1,716

0 500 1,000 1,500 2,000 2,500 3,000 3,500

Chart 5 Standing offers in the Powercor network (as annual bills, inc GST), January 2019 - Calculations based on single rate tariff and annual consumption of 4,800kWh

SUMO POWER 3,248 1ST ENERGY 2,881 PEOPLE ENERGY 2,767 GLOBIRD ENERGY 2,765 POWERSHOP 2,329 LUMO ENERGY 2,323 COVAU 2,311 DIAMOND ENERGY 2,249 ENERGYAUSTRALIA 2,234 SIMPLY ENERGY 2,225 ORIGIN ENERGY 2,161 BLUE NRG 2,132 DODO POWER & GAS 2,069 COMMANDER 2,060 ALINTA ENERGY 2,031 POWERDIRECT 2,011 AGL 2,011 AMAYSIM 2,010 CLICK ENERGY 2,010 RED ENERGY 2,004 TANGO ENERGY 1,937 MOMENTUM ENERGY 1,882 Q ENERGY 1,858

0 500 1,000 1,500 2,000 2,500 3,000 3,500

5 Chart 6 Standing offers in the Ausnet network (as annual bills, inc GST), January 2019 - Calculations based on single rate tariff and annual consumption of 4,800kWh

SUMO POWER 3,698 1ST ENERGY 3,184 PEOPLE ENERGY 2,994 GLOBIRD ENERGY 2,779 COVAU 2,562 POWERSHOP 2,513 LUMO ENERGY 2,509 DIAMOND ENERGY 2,407 SIMPLY ENERGY 2,369 ENERGYAUSTRALIA 2,327 BLUE NRG 2,323 ALINTA ENERGY 2,295 DODO POWER & GAS 2,273 COMMANDER 2,273 ORIGIN ENERGY 2,263 AMAYSIM 2,183 CLICK ENERGY 2,183 MOMENTUM ENERGY 2,171 RED ENERGY 2,163 POWERDIRECT 2,130 AGL 2,130 TANGO ENERGY 2,088 Q ENERGY 2,001

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Chart 7 Standing offers in the Jemena network (as annual bills, inc GST), January 2019 - Calculations based on single rate tariff and annual consumption of 4,800kWh

SUMO POWER 3,251 1ST ENERGY 2,868 GLOBIRD ENERGY 2,685 PEOPLE ENERGY 2,673 LUMO ENERGY 2,369 COVAU 2,286 POWERSHOP 2,254 SIMPLY ENERGY 2,221 ENERGYAUSTRALIA 2,175 BLUE NRG 2,148 DIAMOND ENERGY 2,081 ALINTA ENERGY 2,077 ORIGIN ENERGY 2,043 DODO POWER & GAS 2,039 POWERDIRECT 2,036 AGL 2,036 COMMANDER 2,028 AMAYSIM 1,982 CLICK ENERGY 1,982 RED ENERGY 1,967 TANGO ENERGY 1,850 MOMENTUM ENERGY 1,815 Q ENERGY 1,716

0 500 1,000 1,500 2,000 2,500 3,000 3,500

6 Chart 8 Standing offers in the United Energy network (as annual bills, inc GST), January 2019 - Calculations based on single rate tariff and annual consumption of 4,800kWh

SUMO POWER 3,033 GLOBIRD ENERGY 2,605 1ST ENERGY 2,552 PEOPLE ENERGY 2,504 LUMO ENERGY 2,312 COVAU 2,308 POWERSHOP 2,230 SIMPLY ENERGY 2,178 DIAMOND ENERGY 2,134 ENERGYAUSTRALIA 2,109 BLUE NRG 2,035 ORIGIN ENERGY 2,015 TANGO ENERGY 1,971 POWERDIRECT 1,937 AGL 1,937 DODO POWER & GAS 1,930 ALINTA ENERGY 1,927 COMMANDER 1,920 RED ENERGY 1,894 AMAYSIM 1,876 CLICK ENERGY 1,876 Q ENERGY 1,840 MOMENTUM ENERGY 1,823

0 500 1,000 1,500 2,000 2,500 3,000 3,500

Charts 9 – 13 below show the average increases as well as the individual retailers’ increases in each network area from January 2018 to January 2019. Many of the retailers (13 out of 23) have not changed their electricity standing offer prices since January 2018. Covau, GloBird and Diamond Energy, however, are the retailers with the greatest increases while Sumo, Powershop, AGL and Powerdirect reduced their standing offer electricity prices across all network areas.

In the Citipower network, the average increase across the 23 retailers is 1.4%. Retailers with increases that are significantly higher than average are: GloBird, Covau, Diamond and Tango Energy (see chart 9).

25.0 Chart 9 Percentage changes to standing offers taking effect in January 20.0 2019 in the Citipower network - 15.0 Calculations based annual bills for customers on a single rate tariff and 10.0 annual consumption of 4,800kWh 5.0

0.0

-5.0

-10.0 AGL CovaU Amay sim Q Energy Blue NRG 1st Energy 1st Powershop Red Energy Powerdirect

-15.0 Commander Click Energy Sumo Power Sumo Alinta Energy Lumo Energy Origin Energy Origin Tango Energy Simply Energy Simply People Energy People GloBird Energy GloBird EnergyAustralia -20.0 Diamond Energy Momentum Energy Momentum Do do Power & Gas

-25.0

CP Avg

In the Powercor network, the average increase is also 1.4%. Retailers with increases that are higher than average are: Covau, GloBird, Diamond and Tango Energy (see chart 10).

7 25.0 Chart 10 Percentage changes to standing offers taking effect in January 20.0 2019 in the Powercor network - 15.0 Calculations based annual bills for customers on a single rate tariff and 10.0 annual consumption of 4,800kWh 5.0

0.0

-5.0

-10.0 AGL CovaU Amay sim Q Energy Blue NRG 1st Energy 1st Powershop Red Energy Powerdirect

-15.0 Click Energy Commander Sumo Power Sumo Lumo Energy Alinta Energy Origin Energy Origin TangoEnergy People Energy People Energy Simply GloBird Energy GloBird EnergyAustralia -20.0 Diamond Energy Momentum Energy Momentum Do do Power & Gas

-25.0 PC Avg

In the Ausnet network, the average increase is 1.3%. Retailers with increases that are significantly higher than average are: Covau, GloBird, Diamond and Tango Energy (see chart 11).

25.0 Chart 11 Percentage changes to standing offers taking effect in 20.0 January 2019 in the Ausnet network - 15.0 Calculations based annual bills for customers on a single rate tariff and 10.0 annual consumption of 4,800kWh 5.0

0.0

-5.0

-10.0 AGL CovaU Amay sim Q Energy Blue NRG 1st Energy 1st Powershop Red Energy Powerdirect

-25.0

Aus Avg

In the Jemena network, the average increase is 1%. Retailers with increases that are higher than average are: Covau, GloBird, Tango Energy and Diamond (see chart 12).

8 25.0 Chart 12 Percentage changes to standing offers taking effect in 20.0 January 2019 in the Jemena network 15.0 - Calculations based annual bills for customers on a single rate tariff and 10.0 annual consumption of 4,800kWh 5.0

0.0

-5.0

-10.0 AGL CovaU Amay sim Q Energy Blue NRG 1st Energy 1st Powershop Red Energy Powerdirect

-15.0 Commander Click Energy Sumo Power Sumo Alinta Energy Lumo Energy Origin Energy Origin TangoEnergy Simply Energy Simply People Energy People GloBird Energy GloBird EnergyAustralia -20.0 Diamond Energy Do do Power & Gas Energy Momentum

-25.0

Jen Avg

In the United Energy network, the average increase is 1.5%. Retailers with increases that are higher than average are: GloBird, Diamond, Covau and Tango Energy (see chart 13).

25.0 Chart 13 Percentage changes to standing offers taking effect in January 20.0 2019 in the United Energy network 15.0 - Calculations based annual bills for customers on a single rate tariff and 10.0 annual consumption of 4,800kWh 5.0

0.0

-5.0

-10.0 AGL CovaU Amay sim Q Energy Blue NRG 1st Energy 1st Powershop Red Energy Powerdirect

-25.0

UE Avg

Retailers are allowed to change their standing offers every 6 months but only one retailer, Alinta Energy, changed their offers twice in the last year.

1.2 Gas standing offers January 2018 – January 2019

There are three gas distributors and eight main gas zones. The distributors are Multinet, Envestra/ Australian 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.

Chart 14 shows that households experience price changes of between –1 to 5% in January 2019. Energy Australia’s prices have increased while AGL’s prices have decreased slightly. Origin Energy’s prices remained unchanged.

9 6.0 Chart 14 Changes (%) to incumbent retailers’ standing offers from January 5.0 2018 to January 2019 - Calculations based an annual consumption of 4.0 63,000Mj 3.0

2.0

1.0

Percentage (%) changes 0.0

-1.0 Multi 1 Multi 2

-2.0 WestAusnet Envestra North Ausnet Central 2 Ausnet Central 1 Envestra Central 2 Envestra Central 1

AGL Origin EA

Charts 15 - 17 below show the incumbent retailers’ gas standing offer as of January 2018 and January 2019.

Jan'17 Jan'19 Chart 15 Changes to AGL’s standing 2,000 offers (as annual bills, inc GST) from January 2018 to January 2019 1,900 - Calculations based an annual 1,800 consumption of 63,000Mj 1,700 1,600

1,500 1,400 $ per annum 1,300

1,200 1,100

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

Jan'18 Jan'19

Chart 16 Changes to Origin’s 2,000 standing offers (as annual bills, inc 1,900 GST) from January 2018 to January 2019 - Calculations based an annual 1,800 consumption of 63,000Mj 1,700

1,600 1,500

$ per anum 1,400

1,300 1,200

1,100

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

10 Jan'18 Jan'19 Chart 17 Changes to Energy Australia’s standing offers (as annual 2,200 bills, inc GST) from January 2018 to January 2019 - Calculations based an 2,000 annual consumption of 63,000Mj 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 Gas zones

Five of the 2nd tier retailers have also increased their gas standing offers but the size of the increases varies significantly. Chart 18 compares annual bills as of January 2018 to January 2019 for 13 retailers in the Multinet 1/Origin metro gas zone. It shows that in addition to Energy Australia, Covau, Momentum, Alinta and Sumo Power increased their gas standing offer prices.

Jan'18 Jan'19 Chart 18 Changes to standing offers (as 2,400 annual bills, inc GST) from January 2018 to January 2019 in the Multinet 1/Origin 2,200 Metro gas zone - Calculations based an 2,000 annual consumption of 63,000Mj 1,800

1,600 $ per annum 1,400

1,200

1,000

AGL Covau Amaysim Red Energy Click Energy Sumo Power Al int a Energy Lumo Ener gy Origin Energy Si mply Ener gy EnergyAustralia Dodo Power & Ga s Momentum Energy

On average, across all retailers, gas standing offer prices increased by 2.1% in the Multinet 1/Origin Metro gas zone. Covau and Momentum’s increases of 9.5% are thus significantly higher than the average.

2. Market offers

As many retailers gazetted new standing offers to take effect post 1 January 2018, many retailers have also amended their market offers. The size of the discounts offered continues to be very high but most of them are conditional upon bills being paid on time.

2.1 Electricity market offers post July 201816

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 as of January 2019:

16 The market offers were collected from the retailers’ websites in mid-January 2019 and it should be noted that retailers may change their rates at any time. 11 • Typical consumption households (4,800kWh) can save $1,800 - $2,270 per annum (depending on their network area) if switching from the worst standing offer to the best market offer.17

• The greatest potential annual saving is in Ausnet’s network area (approximately $2,270).18

• The difference between the best and the worst market offers ranges from just over $700 per annum (in Citipower’s area) to $950 (in Ausnet’s area) for customers with typical consumption levels.19

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.20

Table 1 Electricity market offer features January 201921 Effective Guaranteed Pay on time Contract term/ Early Retailer Name from discount discount benefit period termination fee 1st Energy Market Offer 10/12/18 no 20% off usage no no AGL Savers 1/1/19 no 33% off usage 12 months no Alinta Energy Fair Savers 12/1/19 30% off usage no 12 months no Click Energy Garnet 3/12/18 no 27% off bill no no Commander Market offer 1/10/17 no 20% off usage no no CovaU Smart Saver 1/1/19 no 30% off usage 12 months no Diamond Energy Pay on time discount 1/1/18 no 7% off bill 24 months no Dodo Power & Gas^ Dodo Electricity 23/2/18 no no no no EnergyAustralia Anytime Saver 13/12/18 32% off usage no 12 months no GloBird Energy Glosave 8/12/18 no 34% off bill no no Lumo Energy Value 19/12/17 no 3% off bill no no Momentum Energy SmilePower 1/1/19 no no 12 months no Origin Energy Saver 1/1/19 no 20% off usage 12 months no Tango Energy Home Select 5/2/18 no no 12 months no People Energy^ On time saver 1/7/17 no 20% off usage no no

Powerdirect Market Offer 1/1/19 no 41% off usage 12 months no

Powershop* Autopay with Power Saver 1/7/18 no 19.5% off bill no no Q Energy Flexi Saver Home 1/1/19 no no 24 months no Red Energy Living Energy Saver 1/1/19 no 10% off bill no no Simply Energy Plus 26/9/18 no 40% off usage 24 months no Sumo Power Pay on time 1/12/18 no 43% off usage 12 months no Amaysim Electricity as you go 14/1/19 no no 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

2.1.1 Potential savings - Differences between electricity offers

Typical consumption households (4,800kWh per annum) on the worst standing offers can save around $1,800 - $2,270 per annum if switching to the best published market offer (depending on their network 17 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). 18 Ibid. 19 Households using 4,800kWh per annum (single rate) and all market offer bills include additional discounts and/or pay on time discounts. 20 Dodo, for example, has 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. 21 Most retailers have more than one market offer product. The offers used for this analysis are those we deem on-going, key products with as few conditions (i.e. direct debit, e-billing and exit fees) as possible. These market offers are features have been published on the retailers’ websites in mid-January 2019. 12 area).22 This is less compared to last year (January 2018) and the difference between the worst and the best market offers is also reducing. Customers on the best market offer will pay approximately $700 - $950 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.

Chart 19 below shows the retail market offer price-spread within each of the five network areas.23

2,600 Chart 19 Maximum price-spread for market offers in each network area 2,400 January 2019 (incl GST), including discounts and pay on time discounts - 2,200 Households consuming 4,800kWh per annum (single rate) 2,000

1,800 $ per annum 1,600

1,400

1,200

1,000 CP PC SP Jen UE

Charts 20 - 24 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.24

Citipower

In Citipower’s area, average consumption households on the worst standing offer can save approximately $1,800 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.

St an di ng Market (ex POT) Market (inc POT) Chart 20 Citipower’s network 3,500 area: Estimated annual bills (incl GST) for electricity standing 3,000 and market offers January 2019, including discounts and pay on time 2,500 discounts - Households consuming 4,800kWh per annum (single rate) 2,000

1,500

1,000

AGL CovaU Q Ener gy Amaysim 1st E nergy Powershop Powerdirect Red Energy Click EnergyCommander Sumo Power Al int a Energy Lumo Ener gy Origin Energy 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

22 Based on market offer bills that include guaranteed discounts and pay on time discounts. 23 Households using 4,800kWh per annum (single rate) and all market offer bills include guaranteed discounts and/or pay on time discounts. 24 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in table 1. Note that Tango Energy was previously known as Pacific Hydro. 13 The difference between the best and the worst market offer is also significant. Tango Energy’s offer is approximately $700 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 area.25

Figure 1 Citipower’s network area: Lowest to highest annual bills (incl GST) for market offers in January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,150

Simply Energy $1,257

Powerdirect $1,282

Click Energy $1,332

Sumo Power $1,334

Lumo Energy $1,335

AGL $1,394

Alinta Energy $1,404

Red Energy $1,422

Powershop $1,433

1st Energy $1,444

EnergyAustralia $1,483

GloBird Energy $1,559

Commander $1,569

Diamond Energy $1,581

Origin Energy $1,609

Amaysim $1,642

Momentum Energy $1,644

CovaU $1,664

Q Energy $1,740

People Energy $1,845

Dodo Power & Gas $1,854

25 Bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers’ websites on mid-January 2019 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 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 21 Powercor’s network 3,500 area: Estimated annual bills (incl GST) for electricity standing 3,000 and market offers January 2019,

including discounts and pay on time 2,500 discounts - Households consuming 4,800kWh per annum (single rate) 2,000

1,500

1,000

AGL CovaU Q Ener gy Amaysim 1st E nergy PowerdirectPowershop Red Energy Click EnergyCommander Sumo Power Al int a Energy 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 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.26

26 Bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers’ websites on mid-January 2019 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. 15 Figure 2 Powercor’s network area: Lowest to highest annual bills (incl GST) for market offers in January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,279

Simply Energy $1,355

Powerdirect $1,396

Sumo Power $1,460

Click Energy $1,467

Lumo Energy $1,487

AGL $1,516

1st Energy $1,516

Red Energy $1,566

Powershop $1,578

Alinta Energy $1,583

EnergyAustralia $1,649

GloBird Energy $1,668

Diamond Energy $1,767

CovaU $1,770

Momentum Energy $1,804

Amaysim $1,809

Commander $1,821

Origin Energy $1,834

Q Energy $1,841

People Energy $2,158

Dodo Power & Gas $2,164

16 Ausnet

In Ausnet’s network area, average consumption households on the worst standing offer can save approximately $2,270 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 22 Ausnet’s network area: 4,000 Estimated annual bills (incl GST) for electricity standing and market 3,500 offers January 2019, including discounts and pay on time 3,000 discounts - Households consuming 2,500 4,800kWh per annum (single rate) 2,000

1,500

1,000

As in other network areas, the difference between the best and the worst market offers is significant. Tango Energy’s offer is approximately $950 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.27

27 Bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers’ websites on mid-January 2019 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. 17 Figure 3 Ausnet’s network area: Lowest to highest annual bills (incl GST) for market offers in January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,427

Powerdirect $1,460

Simply Energy $1,503

Sumo Power $1,533

AGL $1,591

Click Energy $1,594

Red Energy $1,638

Lumo Energy $1,642

1st Energy $1,658

Powershop $1,675

EnergyAustralia $1,716

Alinta Energy $1,767

GloBird Energy $1,842

Diamond Energy $1,860

Origin Energy $1,918

Amaysim $1,965

CovaU $1,968

Commander $1,996

Momentum Energy $2,068

Q Energy $2,208

People Energy $2,349

Dodo Power & Gas $2,376

18 Jemena

In Jemena’s network area, average consumption households on the worst standing offer can save approximately $1,990 per annum if switching to the best published market offer. Tango Energy is the retailers with the best market offer rates in this network area

St an di ng Market (ex POT) Market (inc POT) Chart 23 Jemena’s network area: 3,500 Estimated annual bills (incl GST)

for electricity standing and market 3,000 offers January 2019, including discounts and pay on time 2,500 discounts - Households consuming 4,800kWh per annum (single rate) 2,000

1,500

1,000

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.28

28 Bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers’ websites on mid-January 2019 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. 19 Figure 4 Jemena’s network area: Lowest to highest annual bills (incl GST) for market offers in January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,262

Sumo Power $1,351

Simply Energy $1,376

Powerdirect $1,400

Lumo Energy $1,435

Click Energy $1,447

1st Energy $1,489

Red Energy $1,490

AGL $1,524

Powershop $1,526

Alinta Energy $1,586

EnergyAustralia $1,587

GloBird Energy $1,615

Q Energy $1,664

Diamond Energy $1,707

Origin Energy $1,714

Momentum Energy $1,740

CovaU $1,745

Amaysim $1,784

Commander $1,789

People Energy $2,094

Dodo Power & Gas $2,131

20 United Energy

In United Energy’s network area, average consumption households on the worst standing offer can save $1,835 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 24 United Energy’s network area: Estimated annual bills (incl 3,500 GST) for electricity standing 3,000 and market offers January 2019, including discounts and pay on 2,500 time discounts - Households consuming 4,800kWh per annum 2,000 (single rate) 1,500

1,000

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 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 approximately $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.29

29 Bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate). These bill estimates are based on rates published on the retailers’ websites on mid-January 2019 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. 21 Figure 5 United Energy’s network area: Lowest to highest annual bills (incl GST) for market offers in January 2019, including discounts and pay on time discounts - Households consuming 4,800kWh per annum (single rate)

Tango Energy $1,197

Sumo Power $1,279

Simply Energy $1,302

Powerdirect $1,320

Click Energy $1,369

Lumo Energy $1,406

AGL $1,440

Red Energy $1,465

Alinta Energy $1,478

1st Energy $1,481

Powershop $1,483

EnergyAustralia $1,543

GloBird Energy $1,615

Diamond Energy $1,637

Amaysim $1,688

Origin Energy $1,690

Commander $1,699

Momentum Energy $1,744

CovaU $1,754

Q Energy $1,835

People Energy $1,956

Dodo Power & Gas $2,017

22 2.2.1 Changes to electricity market offers

While not all retailers changed their market offers in January 2019, some decreased their rates while others increased. Q Energy, GloBird and Alinta are the retailers with the greatest price increases while Simply, AGL, Powerdirect, Lumo, 1st Energy and Amaysim had the greatest price decreases. Charts 25- 29 below show retailers market offers (as annual bills) as of July 2018 and January 2019, as well as percentage changes, for each network area.

2,000 Chart 25 Citipower’s network 1,800 -3.6% +44.6% -5.3% area: Changes to annual bills +9.4% +5.6% 1,600 -6.2% +26.8% for electricity market offers -4.4% +2.1% +18.4% -6.5% -9.2% from July 2018 to January 2019, 1,400 -5.7% including discounts and pay on 1,200

time discounts - Households 1,000 consuming 4,800kWh per annum 800 (single rate), incl. GST 600 400

200 0

AGL CovaU Q Energy Amay sim 1st Energy Commander PowerdirectPowershop Red Energy Alinta EnergyClick Energy Lumo EnergyOriginTango Energy Energy Sumo Power GloBird Energy People Energy Simply Energy Diamond EnergyEnergyAustralia Do do Power & Gas Momentum Energy

Jul-18 Jan-19

2,500 Chart 26 Powercor’s network area:

Changes to annual bills for electricity 2,000 -5.3% -3.0% +5.7% +37.3% market offers from July 2018 to +8.4% +2.1%+28.8% -5.6% -4.6% +18.6% January 2019, including discounts -2.7% -5.7% -9.0% 1,500 and pay on time discounts - Households consuming 4,800kWh per annum (single rate), incl. GST 1,000

500

AGL CovaU Q Energy Amay sim 1st Energy Click EnergyCommander PowerdirectPowershop Red Energy Alinta Energy Lumo EnergyOriginTango Energy Energy Sumo Power GloBird Energy People Energy Simply Energy Diamond EnergyEnergyAustralia Do do Power & Gas Momentum Energy

Jul-18 Jan-19

23 2,500

Chart 27 Ausnet’s network area: +49.8% +2.7% -5.3% Changes to annual bills for electricity +12.7% 2,000 +5.7% market offers from July 2018 to +27.1% -3.9% +18.8% -4.3% +2.1% -0.9% January 2019, including discounts +1.5% -4.9% -5.6% +7.9% and pay on time discounts - 1,500 Households consuming 4,800kWh per annum (single rate), incl. GST 1,000

500

AGL CovaU Q Energy Amay sim 1st Energy PowerdirectPowershop Red Energy Alinta EnergyClick EnergyCommander Lumo EnergyOrigin Energy Sumo Power GloBird Energy TangoPeople Energy Energy Simply Energy Diamond EnergyEnergyAustralia Do do Power & Gas Momentum Energy

Jul-18 Jan-19

2,500 Chart 28 Jemena’s network area: Changes to annual bills 2,000 -5.3% for electricity market offers -2.0% +8.3% +6.1% +23.2% from July 2018 to January 2019, -5.9% -4.6% +18.8% +2.2% +26.7% -6.2% -5.8% including discounts and pay on 1,500 -5.7%-5.5% time discounts - Households consuming 4,800kWh per annum 1,000 (single rate), incl. GST

500

2,500 Chart 29 United Energy’s network area: Changes to annual 2,000 +47.3% -5.3% bills for electricity market offers +10.3% -2.8% +6.1% +32.9% from July 2018 to January 2019, -5.2% +2.2% -4.5% +18.3% -6.4% including discounts and pay on 1,500 -5.8% -8.6% +4.0% time discounts - Households consuming 4,800kWh per annum 1,000 (single rate), incl. GST

500

24 2.2 Gas market offers January 201930

• Typical consumption households (63,000Mj) can save $670 - $1,050 per annum (depending on their gas zone) if switching from the worst standing offer to the best market offer.31

• The greatest potential savings are in the AGN North/Origin North gas zone (Northern and Central Victoria).32

• The difference between the best and the worst market offers ranges from $310 per annum (Ausnet West/Tru West gas zone) to $570 (Multinet 1/Origin Metro gas zone) for customers with typical consumption levels.33

Chart 30 below shows the retail market offer price-spread within each of the eight main gas pricing zones.

2,000

Chart 30 Maximum price-spread 1,900 in each pricing zone January 2019 (incl GST), including discounts and 1,800

pay on time discounts - Households 1,700 consuming 63,000Mj per annum 1,600

1,500

$ per annum 1,400

1,300

1,200

1,100

1,000 Multi 1 Multi 2 AGN AGN AGN 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 offer features January 201934

Retailer Name Effective Guaranteed Pay on time Contract term/ Early from discount discount benefit period termination fee AGL Savers 14/1/19 no 24% off usage 12 months no

Alinta Energy Fair Saver 12/1/19 20% off usage no 12 months no

Click Energy Burgundy 3/12/18 no 26% off bill no no

CovaU Smart Saver 1/1/19 no 16% off usage 12 months no Dodo Power & Gas^ Market offer 23/2/18 no no no no EnergyAustralia Anytime Saver 2/1/19 22% off usage no 12 months no Lumo Energy Value 1/1/19 no 3% off bill no no AGL Savers 14/1/19 no 24% off usage 12 months no

30 These bill estimates are based on rates published on the retailers’ websites in mid-January 2019 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. 31 Based on the worst of the retailers’ standing offer and the best of the published market offersincluding ( additional discounts and/or pay on time discounts). 32 Ibid. 33 Households using 63,000Mj per annum. All market offer bills include additional discounts and/or pay on time discounts. 34 Most retailers have more than one market offer product. The offers used for this analysis are those we deem on-going, key products with as few conditions (i.e. direct debit, e-billing and exit fees) as possible. These bill estimates are based on rates published on the retailers’ websites in mid-January 2019. 25 Alinta Energy Fair Saver 12/1/19 20% off usage no 12 months no Click Energy Burgundy 3/12/18 no 26% off bill no no CovaU Smart Saver 1/1/19 no 16% off usage 12 months no Dodo Power & Gas^ Market offer 23/2/18 no no no no EnergyAustralia Anytime Saver 2/1/19 22% off usage no 12 months no Lumo Energy Value 1/1/19 no 3% off bill no no Momentum Energy Market offer 1/1/19 no no no no Origin Energy Saver 1/1/19 no 13% off usage 12 months no Red Energy Easy Saver 1/1/19 no 10% off bill no no Simply Energy Plus 26/9/18 no 26% off usage 24 months no Sumo Power Pay on time 1/5/18 no 25% off usage 12 months no Amaysim Gas as you go 14/1/19 no no no no GloBird Energy GloSave 15/11/18 no 32% off usage no no

Powershop* Autopay with Gas Saver 9/5/18 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 2.2.1 Potential savings - Differences between gas offers

Typical consumption households (63,000Mj per annum) on the worst standing offer can save $670 - $1,050 per annum if switching to the best published market offer (depending on their gas zone).

Charts 31 - 38 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.35 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.36

Multinet 1/Origin Metro Gas Zone

In the Multinet 1 gas zone, average consumption households on the worst standing offer can save approximately $885 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone.

St an di ng Market (ex POT) Market (incl POT)

Chart 31 Multinet 1/Origin Metro 2,600 gas zone: Estimated annual bills 2,400 (incl GST) for gas standing and 2,200 market offers January 2019, including discounts and pay on time 2,000 discounts - Households consuming 1,800 63,000Mj per annum37 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 Multinet 1 gas zone

35 Based on market offer bills that include discounts and pay on time discounts. 36 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. 37 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 26 Figure 6 below shows estimated annual bills for stand alone gas market offers post discounts in the Multinet 1 gas zone. The difference between the best (Red) and the worst (Dodo) is approximately $440 per annum. Figure 6 Multinet 1/Origin Metro gas zone: Lowest to highest Red Energy $1,393 annual bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming Sumo Power 38 $1,409 63,000Mj per annum

Alinta Energy $1,438

GloBird Energy $1,439

AGL $1,446

Powershop $1,476

Lumo Energy $1,477

Origin Energy $1,513

EnergyAustralia $1,537

Amaysim $1,550

Simply Energy $1,551

Momentum Energy $1,615

Click Energy $1,686

CovaU $1,823

Dodo Power & Gas $1,834

Multinet 2/AGL South Gas Zone

In the Multinet 2 gas zone, average consumption households on the worst standing offer can save approximately $905 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone.

St an di ng Market (ex POT) Market (incl POT) Chart 32 Multinet 2/AGL South 2,600 gas zone: Estimated annual bills 2,400 (incl GST) for gas standing and 2,200 market offers January 2019, 2,000 including discounts and pay on time discounts - Households consuming 1,800 63,000Mj per annum39 1,600 1,400 1,200 1,000 800

38 These bill estimates are based on rates published on the retailers’ websites in mid-January 2019. 39 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 27 Figure 7 below shows estimated annual bills for stand alone gas market offers post discounts in the Multinet 2 gas zone. The difference between the best (Red) and the worst (Covau) is approximately $450 per annum. Figure 7 Multinet 2/AGL South gas zone: Lowest to highest annual Red Energy $1,372 bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 63,000Mj per Sumo Power $1,396 annum40

GloBird Energy $1,439

Alinta Energy $1,442

AGL $1,456

Powershop $1,476

Lumo Energy $1,492

Origin Energy $1,513

EnergyAustralia $1,537

Amaysim $1,550

Simply Energy $1,551

Momentum Energy $1,615

Click Energy $1,686

Dodo Power & Gas $1,745

CovaU $1,823

AGN North/Origin North Gas Zone

In the AGN North gas zone, average consumption households on the worst standing offer can save approximately $1,050 per annum if switching to the best published market offer. Sumo Power is the retailer with the best market offer rates in this gas zone.

St an di ng Market (ex POT) Market (incl POT) Chart 33 AGN North/Origin North 2,600 gas zone: Estimated annual bills 2,400 (incl GST) for gas standing and 2,200 market offers January 2019, 2,000 including discounts and pay on time discounts - Households consuming 1,800 63,000Mj per annum41 1,600 1,400 1,200 1,000 800

40 These bill estimates are based on rates published on the retailers’ websites in mid-January 2019. 41 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 28 Figure 8 below shows estimated annual bills for stand alone gas market offers post discounts in the AGN North gas zone. The difference between the best (Sumo) and the worst (Dodo) is approximately $570 per annum.

Sumo Power $1,351 Figure 8 AGN North/Origin North gas zone: Lowest to highest annual bills (incl GST) for market offers January 2019, including Red Energy $1,456 discounts and pay on time discounts - Households consuming 63,000Mj per annum42 GloBird Energy $1,458

AGL $1,479

Powershop $1,483

Alinta Energy $1,509

Simply Energy $1,527

Momentum Energy $1,533

EnergyAustralia $1,556

Origin Energy $1,566

Lumo Energy $1,566

Amaysim $1,633

CovaU $1,696

Click Energy $1,777

Dodo Power & Gas $1,923

AGN Central 2/Tru East Gas Zone

In the AGN Central 2 gas zone, average consumption households on the worst standing offer can save approximately $1,270 per annum if switching to the best published market offer. AGL is the retailer with the best market offer rates in this gas zone.

St an di ng Market (ex POT) Market (incl POT) Chart 34 AGN Central 2/Tru East 2,600 gas zone: Estimated annual bills 2,400 (incl GST) for gas standing and 2,200 market offers January 2019, 2,000 including discounts and pay on time discounts - Households 1,800 consuming 63,000Mj per annum43 1,600 1,400 1,200 1,000 800

42 These bill estimates are based on rates published on the retailers’ websites in mid-January 2019. 43 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 29 Figure 9 below shows estimated annual bills for stand alone gas market offers post discounts in the AGN Central 2 gas zone. The difference between the best (AGL) and the worst (Dodo) is approximately $400 per annum. Figure 9 AGN Central 2/Tru East gas zone: Lowest to highest AGL $1,407 annual bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming Red Energy $1,433 63,000Mj per annum44

Sumo Power $1,441

GloBird Energy $1,458

Powershop $1,462

Simply Energy $1,511

Alinta Energy $1,544

Lumo Energy $1,554

EnergyAustralia $1,556

Origin Energy $1,566

Momentum Energy $1,586

Amaysim $1,616

CovaU $1,713

Click Energy $1,759

Dodo Power & Gas $1,811

AGN Central 1/Origin South East Gas Zone

In the AGN Central 1 gas zone, average consumption households on the worst standing offer can save approximately $945 per annum if switching to the best published market offer. Red Energy is the retailer with the best market offer rates in this gas zone.

St an di ng Market (ex POT) Market (incl POT) Chart 35 AGN Central 1/Origin South East gas zone: Estimated 2,600 annual bills (incl GST) for gas 2,400 standing and market offers January 2,200 2019, including discounts and pay 2,000 on time discounts - Households 1,800 consuming 63,000Mj per annum45 1,600 1,400 1,200 1,000 800

44 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 in mid-January 2019 and it must be noted that retailers may change their rates at any time. 45 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 30 Figure 10 shows estimated annual bills for stand alone gas Red Energy $1,433 market offers post discounts in the AGN Central 1 gas zone. The difference between the best (Red) and the worst (Dodo) is AGL $1,451 approximately $460 per annum. GloBird Energy $1,458 Figure 10 AGN Central 1/Origin South East gas zone: Lowest to Powershop $1,462 highest annual bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 63,000Mj per annum46 Sumo Power $1,474

Simply Energy $1,511

Alinta Energy $1,536

Lumo Energy $1,554

EnergyAustralia $1,556

Origin Energy $1,566

Momentum Energy $1,586

Amaysim $1,616

CovaU $1,713

Click Energy $1,759

Dodo Power & Gas $1,894

Ausnet West/Tru West Gas Zone

In the Ausnet West gas zone, average consumption households on the worst standing offer can save approximately $670 per annum if switching to the best published market offer. Powershop is the retailer with the best market offer rates in this gas zone, however, as Powershop offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is GloBird’s.

St an di ng Market (ex POT) Market (incl POT) Chart 36 Ausnet West/Tru West 2,600 gas zone: Estimated annual bills (incl GST) for gas standing and 2,400 market offers January 2019, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 47 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 Ausnet West gas zone

46 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 in mid-January 2019 and it must be noted that retailers may change their rates at any time. 47 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 31 Figure 11 below shows estimated annual bills for stand alone gas market offers post discounts in the Ausnet West gas zone. The difference between the best (GloBird) and the worst (Click Energy) is approximately $300 per annum.

Powershop $1,334 Figure 11 Ausnet West/Tru West gas zone: Lowest to highest annual bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming GloBird Energy $1,342 63,000Mj per annum48 Red Energy $1,370

AGL $1,382

Sumo Power $1,382

Momentum Energy $1,416

Origin Energy $1,419

Lumo Energy $1,431

Alinta Energy $1,442

Simply Energy $1,457

EnergyAustralia $1,495

Amaysim $1,512

CovaU $1,611

Click Energy $1,645

Ausnet Central 2/AGL North Gas Zone

In the Ausnet Central 2 gas zone, average consumption households on the worst standing offer can save approximately $920 per annum if switching to the best published market offer. Powershop is the retailer with the best market offer rates in this gas zone, however, as Powershop only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is GloBird’s.

St an di ng Market (ex POT) Market (incl POT) Chart 37 Ausnet Central 2/AGL 2,600 North gas zone: Estimated annual 2,400 bills (incl GST) for gas standing 2,200 and market offers January 2019, 2,000 including discounts and pay on time 1,800 discounts - Households consuming 63,000Mj per annum49 1,600 1,400 1,200 1,000 800

48 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 in mid-January 2019 and it must be noted that retailers may change their rates at any time. 49 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 32 Figure 12 below shows estimated annual bills for stand alone gas market offers post discounts in the Ausnet Central 2. The difference between the best (GloBird) and the worst (Covau) is approximately $390 per annum. Figure 12 Ausnet Central 2/AGL North gas zone: Lowest to highest Powershop $1,383 annual bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming GloBird Energy $1,421 63,000Mj per annum50

Red Energy $1,457

Origin Energy $1,484

AGL $1,485

Lumo Energy $1,495

Sumo Power $1,511

Simply Energy $1,537

Amaysim $1,567

Momentum Energy $1,567

Alinta Energy $1,573

EnergyAustralia $1,598

Click Energy $1,705

Dodo Power & Gas $1,801

CovaU $1,810

Ausnet Central 1/Tru Central Gas Zone

In the Ausnet Central 1 gas zone, average consumption households on the worst standing offer can save approximately $925 per annum if switching to the best published market offer. Powershop is again the retailer with the best market offer rates in this gas zone, however, as Powershop only offer gas in conjunction with an electricity contract it should be noted that the best stand-alone gas offer is Red Energy’s.

50 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 in mid-January 2019 and it must be noted that retailers may change their rates at any time. 33 St an di ng Market (ex POT) Market (incl POT) Chart 38 Ausnet Central 1/Tru 2,600 Central gas zone: Estimated annual bills (incl GST) for gas standing 2,400 and market offers January 2019, 2,200 including discounts and pay on time 2,000 discounts - Households consuming 1,800 51 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 Ausnet Central 1 gas zone. The difference between the best (Red Energy) and the worst (Covau) is approximately $400 per annum.

Figure 13 Ausnet Central 1/Tru Central gas zone: Lowest to highest annual bills (incl GST) for market offers January 2019, including discounts and pay on time discounts - Households consuming 63,000Mj per annum52

Powershop $1,379

Red Energy $1,408

GloBird Energy $1,421

Origin Energy $1,484

AGL $1,491

Sumo Power $1,508

Lumo Energy $1,509

Simply Energy $1,537

Amaysim $1,567

Momentum Energy $1,567

Alinta Energy $1,594

EnergyAustralia $1,598

Click Energy $1,705

CovaU $1,810

Dodo Power & Gas $1,813

51 Discounts (excluding GST) have been applied to consumption and/or total bill as per offers listed in the table 2. 52 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 in mid-January 2019 and it must be noted that retailers may change their rates at any time. 34 2.2.2 Changes to gas market offers

While some retailers did not change their gas market offers in January 2019, some decreased their rates while others increased theirs. Energy Australia, Alinta, Momentum and Covau are the retailers with the greatest price increases while Amaysim had the greatest price decreases. Charts 39 - 46 below show retailers market offers (as annual bills) as of July 2018 and January 2019, as well as percentage changes, for each gas zone.

2,500 Chart 39 Multinet 1 gas zone: -28.4% Changes to annual bills for gas 2,000 market offers from July 2018 to +6.9% +2.2%

January 2019, including discounts and +11.2% +19.1% -0.4% pay on time discounts - Households 1,500 +1.2% +12.0% +6.4% +2.2% consuming 63,000Mj per annum, incl. GST 1,000

500

AGL Covau Amay sim Powershop Click Energy Red Energy Sumo Power Alinta Energy Lumo Energy Origin Energy Simply Energy EnergyAustralia GloBird Energy Do do Power & Gas Momentum Energy

Jul-18 Jan-19

2,500 Chart 40 Multinet 2 gas zone: -28.4% Changes to annual bills for gas 2,000 market offers from July 2018 to +6.9%

January 2019, including discounts and +11.2% +19.1% +6.1% -0.4% pay on time discounts - Households 1,500 +1.2% +13.6% +2.2% consuming 63,000Mj per annum, incl. GST 1,000

500

AGL Covau Amay sim Red Energy Powershop Click Energy Sumo Power Alinta Energy Lumo Energy Origin Energy Simply Energy EnergyAustralia GloBird Energy Do do Power & Gas Momentum Energy

Jul-18 Jan-19

35 Chart 41 AGN North gas zone: 2,500 ChangesChart 41 to AGN annual North bills gas for zone: gas market -28.4% Changes to annual bills for gas offers from July 2018 to January 2019, 2,000 market offers from July 2018 to including discounts and pay on time +2.8% January 2019, including discounts +18.8% +5.8% +9.8% discounts - Households consuming +1.6% +11.9% -3.3% and pay on time discounts - 1,500 63,000Mj per annum, incl. GST Households consuming 63,000Mj per

annum, incl. GST 1,000

500

AGL Covau Amay sim Red Energy Powershop Alinta EnergyClick Energy Lumo Energy Origin Energy Sumo Power EnergyAustralia Simply Energy GloBird Energy Do do Power & Gas Momentum Energy

Jul-18 Jan-19

2,500 Chart 42 AGN Central 2 gas zone: -28.4% Changes to annual bills for gas 2,000 market offers from July 2018 to +5.1% January 2019, including discounts +13.0% +12.8% +18.8% +5.2% -3.3% and pay on time discounts - 1,500 +1.6% Households consuming 63,000Mj per

annum, incl. GST 1,000

500

AGL Covau Amay sim Red Energy Powershop Alinta EnergyClick Energy Lumo Energy Origin Energy Sumo Power EnergyAustralia Simply Energy GloBird Energy Do do Power & Gas Momentum Energy

Jul-18 Jan-19

2,500 Chart 43 AGN Central 1 gas zone: -28.4% Changes to annual bills for gas market offers from July 2018 to 2,000 +5.1% January 2019, including discounts +13.0% +11.3% +18.8% +6.0% -3.3% and pay on time discounts - 1,500 +1.6% Households consuming 63,000Mj per

annum, incl. GST 1,000

500

AGL Covau Amay sim Red Energy Powershop Click Energy Sumo Power Alinta Energy Lumo Energy Origin Energy Simply Energy EnergyAustralia GloBird Energy Do do Power & Gas Momentum Energy

Jul-18 Jan-19

36 2,500 Chart 44 Ausnet West gas zone: -28.4% Changes to annual bills for gas market offers from July 2018 to 2,000

January 2019, including discounts and +5.5% +17.9% 1,500 +12.8% +5.1% +2.4% pay on time discounts - Households +0.7% +9.6% consuming 63,000Mj per annum, incl.

GST 1,000

500

AGL Covau Amay sim Powershop Click Energy Red Energy Sumo Power Alinta Energy Lumo Energy Origin Energy Simply Energy EnergyAustralia GloBird Energy Momentum Energy

Jul-18 Jan-19

2,500

Chart 45 Ausnet Central 2 gas -28.4% zone: Changes to annual bills for 2,000 gas market offers from July 2018 to +6.2%

January 2019, including discounts +13.3% +18.6% +7.8% +0.8% +3.9% and pay on time discounts - 1,500 +9.6% Households consuming 63,000Mj per annum, incl. GST 1,000

500

AGL Covau Amay sim Red Energy Powershop Alinta EnergyClick Energy Lumo Energy Origin Energy Sumo Power EnergyAustralia Simply Energy GloBird Energy Do do Power & Gas Momentum Energy

Jul-18 Jan-19

2,500

Chart 46 Ausnet Central 1 gas -28.4% zone: Changes to annual bills for 2,000 gas market offers from July 2018 to +6.2%

January 2019, including discounts +14.0% +18.6% +7.8% +0.7% +4.8% and pay on time discounts - 1,500 +9.6% Households consuming 63,000Mj per annum, incl. GST 1,000

500

AGL Covau Amay sim Red Energy Powershop Click Energy Sumo Power Alinta Energy Lumo Energy Origin Energy Simply Energy EnergyAustralia GloBird Energy Do do Power & Gas Momentum Energy

Jul-18 Jan-19

37 2.3 Solar market offers January 2019

• The maximum price-spread is around $515 in Ausnet, $475 in Jemena and Powercor’s areas, $460 in United Energy and $420 in Citipower.53

• Depending on network area, Melbourne solar customers with a 3kW system installed would on average pay between $865 and $900 less per annum compared to non-solar households.54

• Non-metropolitan households would on average pay between $990 and $1,080 less per annum compared to non-solar households.55

While many solar customers currently receive a solar feed in rate (FIT) of 60 cents (the premium FIT scheme), this scheme is closed to new entrants and new solar customers should therefore carefully as- sess both the retailers’ FIT rates as well as the cost of electricity imported when choosing a solar offer.56

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.57

• 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.58

• 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.

53 Based on the worst and the best of the published market offers for single rate customers using 4,800 kWh per annum and a 3kW solar system installed. Bills include additional discounts and/or pay on time discounts and FIT, 3kW solar system. 54 Ibid. 55 Ibid. 56 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. 57 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). 58 Ibid. 38 Table 3: Retailers’ FIT rates Retailer* Offer FIT rate (c/kWh) AGL Solar Savers 20 Alinta Energy Fair Saver 11.3 Click Energy Solar 18 Commander Market offer 11.6 Diamond Energy Pay on time discount 12 Dodo Power & Gas Market offer 11.6 EnergyAustralia^ Anytime Saver 9.9 GloBird Energy Glosave 10 Lumo Energy Value 11.3 Momentum Energy SmilePower 9.9 Origin Energy Solar Boost 20 Tango Energy Home Select 11.3 Powerdirect Market offer 11.3 Powershop Autopay with 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 as you go 20 CovaU Smart Saver Solar 11.3 * 1st Energy, People Energy and Q Energy do not offer market offer contracts to solar customers in Victoria ^ Note that Energy Australia offers a three part time-varying feed-in-tariff to solar customers on a Time of Use (TOU) tariff. The time-varying FIT rate is 7.1 c/kWh for electricity exported at peak times, 29 c/kWh at off-peak times and 10.3 c/kWh shoulder times.

Chart 47 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 3kW system installed is $665 and that is $865 less than the average market offer bill for non-solar customers (see chart 20 in section 2.1.1 above). Households with a 1.5 kW system installed will typically have an annual bill of $1,030.

Melbourne (Citipower) solar customers with 3 kW systems (and this consumption level) would be approximately $420 per annum better off on Tango’s offer compared to Covau’s.

Chart 47 also shows that AGL, Click, Origin and Amaysim’s offers produce annual bills that are above average for 1.5 kW systems despite having the highest FIT rates (20, 18, 20 and 20 c/kWh respectively). This highlights the importance of solar customers not choosing retail offers based on FIT rates alone.

3 kW 1.5 kW 3 kW avg 1.5 kW avg Chart 47 Annual bills including discounts and FIT credits for 1,300 Melbourne/Citipower customers 1,100 with 3 kW and 1.5 kW solar systems. Electricity offers in January 2019 as 900 annual bills, Single rate, 4,800kWh 59 (GST inc). 700

500

300

100

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

59 Calculations include discounts off usage or bill as well as pay on time discounts off usage or bill. 39 Chart 48 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 3kW system installed is $715 and that is $905 less than the average market offer bill for non-solar customers (see chart 23 in section 2.1.1 above). Households with a 1.5 kW system installed will have an annual bill of $1,095.

3 kW 1.5 kW 3 kW avg 1.5 kW avg Chart 48 Annual bills including 1,500 discounts and FIT credits for Melbourne/Jemena customers with 1,300 3 kW and 1.5 kW solar systems. Electricity offers in January 2019 as 1,100 annual bills, Single rate, 4,800kWh 900 (GST inc).60 700

500

300

100

Chart 49 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 3kW system installed is $685 and that is $885 less than the average market offer bill for non-solar customers (see chart 24 in section 2.1.1 above). Households with a 1.5 kW system installed will have an annual bill of $1,065.

3 kW 1.5 kW 3 kW avg 1.5 kW avg Chart 49 Annual bills including discounts and FIT credits for 1,500 Melbourne/United Energy customers 1,300 with 3 kW and 1.5 kW solar systems. Electricity offers in January 2019 as 1,100 annual bills, Single rate, 4,800kWh (GST inc).61 900 700

500

300

100

Homes outside Melbourne’s metropolitan area will typically have less overshadowing and therefore a higher generation capacity and export rate. Chart 50 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 $610 in Jemena, $580 in United, $665 in Powercor and $720 in Ausnet. The average annual bill is $990 to $1,080 lower than the annual bill for non-solar customers (see section 2.1.1 above for non- solar customers).

60 Ibid. 61 Ibid. 40 Jemena United Powercor Ausnet Chart 50 Annual bills including discounts and FIT credits for non- 1,100 metropolitan customers in Jemena, 1,000 United Energy, Powercor and Ausnet 900 with 3 kW solar systems. Electricity 800 offers in January 2019 as annual 700 bills, Single rate, 4,800kWh (GST 600 62 inc). 500 400 300 200 100

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

Figures 13 - 17 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).63 The maximum price- spread is around $515 in Ausnet, $470 in Jemena and Powercor’s areas, $460 in United Energy and $420 in Citipower.

62 Ibid. 63 These bill estimates are based on rates published on the retailers’ websites in mid-January 2019. Bill calculations include guaranteed discounts and pay on time discount but any additional discounts for customers choosing to pay by direct debit are not included. Annual consumption of 4,800kWh annum (including both produced and imported), single rate, and GST inclusive. Note that Tango Energy was formerly known as Pacific Hydro. 41 Figure 13 Lowest to highest annual Figure 14 Lowest to highest annual Figure 15 Lowest to highest annual bills (incl GST) for solar market bills (incl GST) for solar market bills (incl GST) for solar market offers in January 2019 in the offers in January 2019 in the offers in January 2019 in the Citipower network Jemena network United Energy network

Tango Energy $480 Tango Energy $521 Tango Energy $491

Amaysim $547 Amaysim $557 Amaysim $507

Simply Energy $550 Simply Energy $596 Simply Energy $548

Origin Energy $579 Origin Energy $598 Origin Energy $581

Powerdirect $591 Lumo Energy $613 Lumo Energy $589

Lumo Energy $593 Sumo Power $627 Powerdirect $598

Red Energy $607 Red Energy $647 Powershop $604

Powershop $610 Powershop $649 Red Energy $608

Sumo Power $640 Click Energy $662 Click Energy $610

Click Energy $652 Powerdirect $664 Sumo Power $612

Alinta Energy $664 GloBird Energy $731 AGL $693

AGL $665 Alinta Energy $734 GloBird Energy $704

Diamond Energy $701 Diamond Energy $750 Diamond Energy $719

GloBird Energy $709 EnergyAustralia $761 EnergyAustralia $741

Commander $722 AGL $768 Commander $794

EnergyAustralia $725 Commander $839 Momentum Energy $820

Momentum Energy $798 Momentum Energy $871 Alinta Energy $898

Dodo Power & Gas $852 CovaU $955 Dodo Power & Gas $940

CovaU $901 Dodo Power & Gas $997 CovaU $952

42 Figure 16 Lowest to highest annual Figure 17 Lowest to highest annual bills (incl GST) for solar market offers bills (incl GST) for solar market offers in January 2019 in the Powercor in January 2019 in the Ausnet network network

Tango Energy $462 Tango Energy $535

Amaysim $495 Amaysim $538

Simply Energy $527 Origin Energy $598

Origin Energy $558 Simply Energy $599

Powerdirect $584 Powerdirect $601

Lumo Energy $587 AGL $646

Red Energy $605 Red Energy $647

AGL $607 Lumo Energy $648

Powershop $608 Powershop $648

Click Energy $623 Click Energy $668

Sumo Power $652 Sumo Power $699

Alinta Energy $689 Diamond Energy $769

GloBird Energy $709 GloBird Energy $770

Diamond Energy $736 Alinta Energy $780

EnergyAustralia $749 EnergyAustralia $780

Commander $775 Commander $876

Momentum Energy $830 CovaU $916

CovaU $902 Momentum Energy $944

Dodo Power & Gas $933 Dodo Power & Gas $1,052

43 3. Electricity network charges

The Victorian electricity networks introduce new Network Use of System (NUOS) charges as of 1 January every year. These NUOS charges comprise Transmission Use of System (TUOS) and Distribution Use of System (DUOS) and the retailers can, and generally will, build changes to the NUOS (in relation to both shape and price) into their retail tariffs.64

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. In Victoria, where retail prices are deregulated, effective competition is required to ensure that households do not pay more than necessary for both generation (wholesale) and retail services (including retail margins). This section therefore seeks to explore the cost of each component, as well as changes to these cost components over time.

Chart 51 below shows that NUOS charges remained relatively stable from 2008 to 2010 and that the maximum difference to the annual NUOS charge (for this consumption level) was approximately $100. The maximum difference between networks is currently around $200 per annum. From July 2011 to July 2013 the NUOS charges increased in all of Victoria’s electricity network but since then there have been some increases and some decreases, depending on the network area. In January 2019, the NUOS increased in all network areas except for the Jemena and United Energy networks.

Citipower Powercor Ausnet Jemena UE Chart 51 NUOS charges from 2008 700 to 2019 as estimated annual cost (GST exclusive) for households using 4,800kWh per annum, single rate.65 600

500

400

300

200 NUOS CHARGES ($) PER ANNUM 100

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

In January 2019, the NUOS charge increased by 5% in Ausnet while it decreased by -4% in United Energy. Chart 52 shows changes to NUOS in January 2019.

64 Note that NUOS charges do not include smart metering costs. 65 The annual NUOS charges have been calculated by allocating 1,200kWh per quarter (again based on annual consumption of 4,800kWh) to the step charges stipulated in the NUOS. The annual NUOS cost also includes fixed charges. Note that as United Energy’s NUOS charge has been a seasonal tariff over the last four years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate. 44 Citipower Powercor Ausnet Jemena UE Chart 52 Changes to NUOS charges 40 10 from January 2018 to January 2019 as 8 $ per annum (GST exclusive) and % for 30 households using 4,800kWh per annum, 6 single rate.66 20 5 4 3 10 2 1 0 0

$ change -1 % change -10 -2 -4 -4 -20 -6 -30 -8

-40 -10

$ Change % Change

Chart 53 below looks at NUOS charges as a proportion of total bill. It shows that the NUOS proportion of electricity bills is currently highest in Ausnet (28%) and lowest in Citipower, Jemena and United Energy (21%).

Citipower Powercor Ausnet Jemena UE Chart 53 NUOS charges (excl GST) from July 2008 to January 35 2019 as proportion (%) of annual retail bill (incl. GST) for electricity regulated/standing offers, 30 4,800kWh per annum, single rate.67 25

15 NUOS AS PROPORTION (%) OF BILL

10 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

4. Comparing all market offers

This section compares all published electricity and gas market offers as of January 2019. As such it includes offers with various conditions such as direct debit payments, membership of sports clubs or frequent flyer programs, as well as other conditions.68

Twenty-two retailers offer 67 electricity market offers in the Citipower network. Chart 53 below shows these offers as annual bills inclusive of all discounts as well as additional incentives.69 It shows that the

66 Ibid. 67 The standing offer bill is based on the average incumbent (AGL, Origin and Energy Australia) standing offer as of July every year (except for in 2017, 2018 and 2019 where it is based on January offers). Note that as United Energy’s NUOS charge has been a seasonal tariff over the last three years, the United Energy consumption used in these calculations is thus based on a proportional allocation of a 5 month summer tariff and a 7 month non-summer (off-peak) rate. 68 The standard analysis of market offers in the Tariff-Tracking reports do not include offers where the customer is required to pay by direct debit or be a member of a program/organisation. It also only includes one offer for each retailer. 69 All discounts (guaranteed, pay on time, direct debit, e-billing and dual fuel) have been included as per retail offer. Only incentives that can readily be given a monetary value (for the first 12 months of a contract) have been included. For example, the monetary value of earning frequent flyer points have not been included. 45 maximum difference to annual bills is approximately $800 for this consumption level. A household on Origin’s Supply offer would pay around $1,895 for 12 months of supply while a household on Tango’s Home Select offer would pay $1,095 over the same period.70 The average mean market offer bill is $1,467. Table 4 below outlines the conditions attached to these market offers as well as the type of discounts they offer.71 Fifteen of the 67 offers require payment by direct debit (including Tango Energy’s Home Select offer). Only five of the offers have guaranteed (non-conditional) discounts while over half of the offers (35) have a conditional pay on time discount. We have been registering that monthly billing is becoming an increasingly common feature of market offers and twenty-six of the offers in table 4 require customers to pay monthly instead of quarterly.

70 Note that Origin now offers a 17% additional discount to all customers on non-discounted offers and that these discounts are not included in the above. These discounts were announced through a media release on 30 November 2018, but they are not outlined in Origin’s own Price and Product Information Statements. See Origin’s media release: https://www.originenergy.com.au/ about/investors-media/media-centre/origin_continues_price_relief_for_victorian_customers.html. 71 All additional incentives listed as monetary values have been included in the bill calculations. 46 Chart 54 Electricity market offers in Citipower network as annual bills, 4,800kWh/annum, single rate including all discounts and additional incentives, January 2019

Origin Energy Supply AGL Freedom People Energy On time saver AGL Prepaid Q Energy Flexi Saver Home Q Energy Flexi Home People Energy Total saver Origin Energy Bill Saver Click Energy Move Origin Energy Smart Saver Origin Energy Smart Saver - Dual Fuel CovaU Smart Saver Momentum Energy SmilePower Amaysim Electricity as you go Origin Energy Saver CovaU Smart Saver DD EnergyAustralia Flexi Saver GloBird Energy Easy Save DD Diamond Energy Pay on time discount Red Energy Qantas Red Plus AGL Everyday Commander Market offer GloBird Energy Glosave Origin Energy Maximiser Origin Energy Saver Online Bonus GloBird Energy Glosave DD Diamond Energy Direct Debit EnergyAustralia Velocity Anytime Saver Sumo Power Pay on time (min discount) Powershop Lite Origin Energy Maximiser Online Bonus 1st Energy Market offer EnergyAustralia No frills AGL Savers Home Connect Powershop Autopay with Power Saver EnergyAustralia Anytime Saver Sumo Power Pay on time Red Energy Qantas Red Saver Red Energy Living Energy Saver Alinta Energy Fair Saver Origin Energy One low rate AGL Savers Momentum Energy Move Mate Powershop Autopay with Mega Pack AGL Essentials AGL Savers Online Simply Energy Save Simply Energy Movie EnergyAustralia Secure Saver Sumo Power Pay on time (max discount) Click Energy Garnet Lumo Energy Basic Lumo Energy Movers Momentum Energy SmilePower Flexi Lumo Energy Movers DD Dodo Power & Gas Market offer Powerdirect Market offer Lumo Energy Value AGL Essentials Plus Momentum Energy Geelong Cats Lumo Energy Value DD Simply Energy AFL Simply Energy Plus Simply Energy Extra Tango Energy Home Select Simply Energy RACV Tango Energy Home E-Select 0 200 400 600 800 1, 000 1, 200 1, 400 1, 600 1, 800 2, 000

47 Table 4: Conditions and features of electricity market offers in Citipower network, January 2019

Retailer Offer Bill Direct Debit only Direct E-billing only Monthly billing Membership Guaranteed discount Pay-on-time discount debit discount Direct E-bill/online discount Dual fuel discount Fixed rates Other incentives incentive Approx. value ($)

Origin Energy Supply $1,894 AGL Freedom $1,855 People Energy On time saver $1,813 AGL Prepaid $1,767 $80 Q Energy Flexi Home $1,740 Q Energy Flexi Saver Home $1,740 People Energy Total Saver $1,731 Origin Energy Bill Saver $1,704 Click Energy Move $1,697 Origin Energy Smart Saver $1,680 Origin Energy Smart Saver - Dual Fuel $1,666 CovaU Smart Saver $1,664 Momentum SmilePower $1,644 Energy Amaysim Electricity as you go $1,642 Origin Energy Saver $1,609 CovaU Smart Saver DD $1,595 EnergyAustralia Flexi Saver $1,589 Globird Energy Easy Save DD $1,581 Diamond Energy Pay on time discount $1,581 Red Energy Qantas Red Plus $1,580 AGL Everyday $1,577 Commander Market offer $1,569 Globird Energy Glosave $1,559 Origin Energy Maximiser $1,552 Origin Energy Saver Online Bonus $1,538 Globird Energy Glosave DD $1,535 Diamond Energy Direct Debit $1,530 EnergyAustralia Velocity Anytime Saver $1,513 Sumo Power Pay on time (min discount) $1,506 Powershop Lite $1,498 Origin Energy Maximiser Online Bonus $1,495 1st Energy Market offer $1,444

EnergyAustralia No frills $1,444 (12 months) AGL Savers Home Connect $1,434 $79 Powershop Autopay with Power Saver $1,433 EnergyAustralia Anytime Saver $1,428 $50 Sumo Power Pay on time $1,428 Retailer Offer Bill Direct Debit only Direct E-billing only Monthly billing Membership Guaranteed discount Pay-on-time discount debit discount Direct E-bill/online discount Dual fuel discount Fixed rates Other incentives incentive Approx. value ($)

Red Energy Living Energy Saver $1,422 Red Energy Qantas Red Saver $1,422 Alinta Energy Fair Saver $1,404

Origin Energy One low rate $1,396 (12 months) AGL Savers $1,394 Momentum Move Mate $1,390 $50 Energy Powershop Autopay with Mega Pack $1,367

AGL Essentials $1,366 (12 months) AGL Savers Online $1,366 $25 Simply Energy Movie $1,345 $50 Simply Energy Save $1,345 $50

EnergyAustralia Secure Saver $1,343 (24 months) Sumo Power Pay on time (max discount) $1,334 Click Energy Garnet $1,332 Lumo Energy Basic $1,321 $50 Lumo Energy Movers $1,319 $50 Momentum SmilePower Flexi $1,298 $50 Energy Lumo Energy Movers DD $1,290 $50 Dodo Power & Market offer $1,284 Gas Powerdirect Market offer $1,282 Lumo Energy Value $1,280 $50

AGL Essentials Plus $1,278 $80 (24 months) Momentum Geelong Cats $1,253 $50 Energy Lumo Energy Value DD $1,252 $50 Simply Energy AFL $1,207 $175 Simply Energy Plus $1,202 $50 Simply Energy Extra $1,159 $50

Tango Energy Home Select $1,150 (12 months) Simply Energy RACV $1,130 $50

Tango Energy Home E-Select $1,095 $50 (12 months)

49 In relation to gas, fifteen retailers offer 48 gas market offers in the Multinet 1/Origin central gas zone. Chart 55 below shows these offers as annual bills inclusive of all discounts as well as additional incentives.72 It shows that the maximum difference to annual bills is approximately $770 for this consumption level. A household on Click Energy Move offer would pay around $1,120 for 12 months of supply while a household on AGL’s Essential Plus offer would pay $1,350 over a 12 month period. The average mean market offer bill is $1,523. Table 5 below outlines the conditions attached to these market offers as well as the type of discounts they offer.73 Nine of the 48 offers require payment by direct debit, only four of the offers have guaranteed (non-conditional) discounts while over half of the offers (28) have a conditional pay on time discount.

Chart 55 Gas market offers in the Multinet 1 gas zone as annual bills, 63,000Mj/annum including all discounts and additional incentives, January 2019

Click Energy Move Covau Smart Saver AGL Freedom Covau Smart Saver DD Origin Energy Supply Cli ck Energy Burgundy Simply Energy Save Simply Energy Movie EnergyAustralia Flexi Saver EnergyAustralia Velocity Anytime Saver Sumo Power Pay on time (min discount) Momentum Energy Market offer Si mply Ener gy AFL Amaysim Gas as you go Red Energy Qantas Red Plus AGL Everyday Lumo Ener gy Basi c Origin Energy Saver Origin Energy Smart Saver Origin Energy Saver Online Bonus Powershop Lite Simply Energy Extra Simply Energy Plus EnergyAustralia No frills Origin Energy Maximiser EnergyAustralia Anytime Saver Powershop Auto Pay with Gas Saver Sumo Power Pay on time (max discount) Origin E nergy Max imi ser Onli ne Bonus Lumo Ener gy Movers Dodo Power & Gas Market offer AGL Savers GloBird Energy GloSave Alinta Energy Fair Saver Lumo Energy Movers DD Simply Energy RACV Lumo Ener gy Va lue AGL Savers Online GloBird Energy GloSave DD GloBird Energy Easy Save AGL Essentials GloBird Energy ComboGas Red Energy Qantas Red Saver Red Energy Easy Saver Lumo Ener gy Va lue D D EnergyAustralia Secure Saver GloBird Energy ComboGas DD AGL Essentials Plus

0 500 1, 000 1, 500 2, 000 2, 500

72 All discounts (guaranteed, pay on time, direct debit, e-billing and dual fuel) have been included as per retail offer. Only incentives that can readily be given a monetary value (for the first 12 months of a contract) have been included. For example, the monetary value of earning frequent flyer points have not been included. 73 All additional incentives listed as monetary values have been included in the bill calculations. 50 Table 5 Conditions and features of gas market offers in Multinet 1/origin Metro gas zone, January 2019

Click Energy Move $2,119 CovaU Smart Saver $1,823

AGL Freedom $1,804 CovaU Smart Saver DD $1,751 Origin Energy Supply $1,697 Click Energy Burgundy $1,686 Simply Energy Movie $1,685 $50 Simply Energy Save $1,685 $50 EnergyAustralia Flexi Saver $1,662 EnergyAustralia Velocity Anytime Saver $1,599 Sumo Power Pay on time (min discount) $1,599 Momentum Market offer $1,560 $50 Energy Simply Energy AFL $1,553 $170 Amaysim Gas as you go $1,550 Red Energy Qantas Red Plus $1,548 AGL Everyday $1,533 Lumo Energy Basic $1,523 Origin Energy Saver $1,513 Origin Energy Saver Online Bonus $1,499 Origin Energy Smart Saver $1,499 Powershop Lite $1,497 Simply Energy Plus $1,496 $50 Simply Energy Extra $1,496 $50

EnergyAustralia No frills $1,487 (12 months) Origin Energy Maximiser $1,484 EnergyAustralia Anytime Saver $1,482 $50 Powershop Auto Pay with Gas Saver $1,476 Sumo Power Pay on time (max discount) $1,473 Origin Energy Maximiser Online Bonus $1,470 Lumo Energy Movers $1,461 $50 Dodo Power & Market offer $1,450 Gas AGL Savers $1,446 GloBird Energy GloSave $1,439 Alinta Energy Fair Saver $1,438 Lumo Energy Movers DD $1,430 $50 Simply Energy RACV $1,428 $50 51 Retailer Offer Bill Direct Debit only Direct E-billing only Monthly billing Membership Guaranteed discount Pay-on-time discount debit discount Direct E-bill/online discount Dual fuel discount Fixed rates Other incentives incentive Approx. value ($)

Lumo Energy Value $1,422 $50 AGL Savers Online $1,419 $25 GloBird Energy Easy Save $1,418 GloBird Energy GloSave DD $1,418

AGL Essentials $1,407 (12 months) GloBird Energy ComboGas $1,397 Red Energy Easy Saver $1,393 Red Energy Qantas Red Saver $1,393 Lumo Energy Value DD $1,392 $50

EnergyAustralia Secure Saver $1,380 (24 months) GloBird Energy ComboGas DD $1,376

AGL Essentials Plus $1,352 $50 (24 months)

5. Total cost of energy and price changes 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 at the lower end. Such analysis allows for a more detailed understanding of the total energy costs faced by households across Victoria.74 The analysis presented in this section shows that while the increases are small compared to previous years, dual fuel households have received an overall increase to energy costs because gas bills are up by more than electricity bills are down.

Table 6 Electricity standing offer price changes (average) by area January 2018 to January 2019

Annual bill change since Percentage Area January 2018 change Inner city and Eastern suburbs (Citipower) -$10 -0.6% Outer Western suburbs and Western Victoria (Powercor) -$10 -$15* -0.6% -0.6%* Outer Northern and Eastern suburbs and Eastern Victoria (SP Ausnet) -$10 $1,738 -0.5% -0.5%* Inner West and Northern suburbs (Jemena) -$10 -0.6% Outer South Eastern suburbs and Mornington Peninsula (United Energy) -$10 -0.6%

* For all-electric households with peak/off-peak (controlled load) rates

74 The figures in tables 6 - 9 are based on the incumbent retailers’ average standing offer for electricity and gas customers for dual fuel households using 4800kWh and 63,000Mj per annum, and all-electric households using 7000kWh (thereof 30% off-peak). To calculate the increases we have used the average of the incumbent retailers’ standing offer rates rather than the average of all standing offers. This was done because the vast majority of customers on the standing offer are with the incumbents (AGL, Origin and Energy Australia). Furthermore, as discussed above, market offers do generally reflect the increases to the standing offers. 52 Table 7 Gas standing offer price changes (average) by area from January 2018 to January 2019

Annual bill change Percentage Area since January 2018 change Eastern and South Eastern suburbs (Origin Metro zone) $25 1.3% Bayside and outer South Eastern suburbs (AGL South zone) $25 1.3% Northern and North Eastern Victoria (Origin North zone) $25 1.3% CBD, inner city and North Eastern suburbs (TRU East zone) $25 1.3% Frankston, Mornington Peninsula and Gippsland (Origin South East zone) $25 1.3% Macedon Ranges, Bendigo, Ballarat and Western Victoria (TRU West zone) $20 1.0% Western and North Western suburbs (AGL North zone) $20 1.0%

Outer Western suburbs, Geelong and Bellarine Peninsula (TRU Central zone) $20 1.0%

Table 8 Average annual electricity bill by area. Based on standing offers January 2019

Area Average annual bill Inner city and Eastern suburbs (Citipower) $1,920 Outer Western suburbs and Western Victoria (Powercor) $2,135 $2,630* Outer Northern and Eastern suburbs and Eastern Victoria (SP Ausnet) $2,240 $2,735* Inner West and Northern suburbs (Jemena) $2,085 Outer South Eastern suburbs and Mornington Peninsula (United Energy) $2,020

* For all-electric households with peak/off-peak (controlled load) rates

Table 9 Average annual gas bill by area. Based on standing offers January 2019

Area Average annual bill Eastern and South Eastern suburbs (Multinet 1/Origin Metro zone) $1,815 Bayside and outer South Eastern suburbs (Multinet 2/AGL South zone) $1,815 Northern and North Eastern Victoria (AGN North/Origin North zone) $1,855 CBD, inner city and North Eastern suburbs (AGN Central 2/TRU East zone) $1,825 Frankston, Mornington Peninsula and Gippsland (AGN Central 1/Origin South East zone) $1,845 Macedon Ranges, Bendigo, Ballarat and Western Victoria (Ausnet West/TRU West zone) $1,720 Western and North Western suburbs (Ausnet Central 2/AGL North zone) $1,835 Outer Western suburbs, Geelong and Bellarine Peninsula (Ausnet Central 1/TRU Central zone) $1,835

* For all-electric households with peak/off-peak (controlled load) rates

5.1 Inner city, inner North and Eastern suburbs

The electricity standing offer has on average decreased by -$10 over the last year for average consumption (4800kWh) households in this area. Households in the AGN Central 2 gas zone (CBD and inner North) have experienced an increase in gas prices of approximately $25 over the same period.

• Households with an average consumption of electricity and gas in Melbourne (CBD), Brunswick, Carlton, Fitzroy, Northcote, Richmond and Collingwood will typically receive an increase in energy costs of $15 compared to last year.75

75 Source: Citipower Citipower’s electricity distribution network and the AGN Central 2/TRU East gas zone. 53 • Households 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 receive an increase in energy costs of $15 compared to last year.76

• Households 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 receive an increase in energy costs of $15 compared to last year.77

5.2 Inner West and North Western Suburbs

The electricity standing offer has on average decreased by -$10 over the last year for average consumption (4800kWh) households in this area. Households in the Ausnet Central 2 (Western and North Western suburbs) have experienced an increase in gas prices of approximately $20 over the same period.

• Households with an average consumption of electricity and gas in Footscray, Yarraville, Williamstown, Flemington, Moonee Ponds, Broadmeadows, Coolaroo, Braybrook and Sydenham will typically receive an increase in energy costs of $10 compared to last year.78

• Households with an average consumption of electricity and gas in Heidelberg, Fairfield, Ivanhoe, Bundoora, Thomastown, Preston, Reservoir will typically receive an increase in energy costs of $15 compared to last year.79

Source: Essential Services Commission

5.3 South Eastern suburbs and Mornington Peninsula

The electricity standing offer has on average decreased by -$10 over the last year for average consumption (4800kWh) households in this area. Households in the AGN Central 1 gas zone (Mornington Peninsula and outer South Eastern suburbs) have experienced an increase in gas prices of approximately $25 over the same period.

• Households 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 receive an increase in energy costs of $15 compared to last year.80

• Households with an average consumption of electricity and gas in the suburbs of Seaford and Frankston and on the Mornington Peninsula will typically receive an increase in energy costs of $15 compared to last year.81 Source: Essential Services Commission

• Households with an average consumption of electricity and gas in the Eastern suburbs of Bulleen,

76 Citipower’s electricity distribution network and the Multinet 1/Origin Metro gas zone. 77 Citipower’s electricity distribution network and the Multinet 2/AGL South gas zone. 78 Jemena’s electricity distribution network and the AGN Central 2/TRU East gas zone. 79 Bill calculations based on the three incumbent’s standing offers. 80 United Energy’s electricity distribution network and the Multinet 2/AGL South gas zone. 81 United Energy’s electricity distribution network and the AGN Central 1/Origin South East gas zone. 54 Templestowe, Box Hill, Doncaster, Mitcham, Vermont, Glen Waverly and Chadstone will typically receive an increase in energy costs of $15 compared to last year.82

5.4 Outer Western suburbs and Western Victoria

All-electric households in this area would have typically experienced an electricity price decrease of -$15 over the last year (based on average consumption of 7000kWh).83 For dual fuel households the electricity standing offer has on average decreased by approximately -$10 over the last year (based on average consumption of 4800kWh). Total energy cost increases for dual fuel households in the Western region will typically amount to:

• $10 for average consumption households in Hoppers Crossing, Werribee, Geelong region and on the Bellarine peninsula.84

• $10 for average consumption households in Macedon, Kyneton, Ballarat, Colac, Warrnambool, Portland, Hamilton, Source: Powercor Horsham, Ararat and Daylesford.85

• $15 for average consumption households in Northern Victorian towns such as Echuca, Shepparton and Heathcote.86

5.5 Outer Northern and Eastern suburbs and Eastern Victoria

All-electric households in this area would have typically experienced an electricity price decrease of -$15 over the last year (based on average consumption of 7000kWh).87 For dual fuel households the electricity standing offer has on average decreased by -$10 over the last year (based on average consumption of 4800kWh). Total energy cost increases for dual fuel households in the Eastern Victoria will typically amount to:

• $15 for average consumption households in the Outer Northern and Eastern suburbs of Warrandyte, Ringwood, Chirnside Park and the area around Mount Dandenong.88

• $15 for average consumption households in Kilmore, Seymour, Violet Town, Nagambie, Wangaratta, Chiltern and Wodonga.89

• $10 for average consumption households in the La Trobe Valley and Sale in the Gippsland region.90 Source: Essential Services Commission

82 United Energy’s electricity distribution network and the Multinet 1/Origin Metro gas zone. 83 Based on the average electricity standing offer for households taking controlled load off-peak (annual consumption of 7000 kWh, 70% peak and 30% off-peak). 84 Powercor’s electricity distribution network and Ausnet Central 1/TRU Central gas zone. 85 Powercor’s electricity distribution network and the Ausnet West/TRU West gas zone. 86 Powercor’s electricity distribution network and the AGN North/Origin North gas zone. 87 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). 88 Ausnet’s electricity distribution network and the Multinet 1/Origin Metro gas zone. 89 Ausnet’s electricity distribution network and the AGN North/ Origin North gas zone. 90 Ausnet’s electricity distribution network and the AGN Central 1/Origin South East gas zone. 55