In Victoria, energy tariffs define how your energy usage is charged. Different tariffs have different pricing structures, which can significantly impact your bill. Here’s a breakdown of the main types to help you make an informed choice:
Single Rate Tariff : This is the most straightforward option, charging a single rate per kilowatt-hour (kWh) of electricity or megajoule (MJ) of gas, regardless of the time of day.
Time-of-Use Tariff : With this tariff, you’ll be charged different rates for electricity depending on the time of day. Peak periods, usually in the evenings, have higher rates, while off-peak times are cheaper.
Controlled Load Tariff : This tariff applies to specific appliances like hot water systems or pool pumps. It offers a lower rate for electricity used during off-peak times, encouraging you to shift your usage to these periods.
Standing Offer : This is a contract with an energy retailer that sets out the terms and conditions of your energy supply, including the rate tariff.
Victorian Default Offer (VDO) : The VDO is a government-set maximum price that retailers can charge residential and small business customers on standing offers. It acts as a safety net to protect consumers from excessive pricing.
By understanding these different tariff structures and considering your household’s usage patterns, you can select the most suitable tariff and potentially save on your energy bills.