Average energy bill in Melbourne: what households really pay

Most people in Victoria glance at their power bill, pay it, then move on. Yet small changes to your plan or your usage can make a big difference to what you pay over a year.

Typical electricity bills for Melbourne households

Regulators and government agencies regularly publish benchmark figures so Victorian customers can understand whether they are paying roughly in line with the market or well above it.

In Victoria, a key reference point is the Victorian Default Offer (VDO). This is a safety net electricity price set by the Essential Services Commission (ESC) for households and small businesses who are not on a market contract.

Indicative figures from recent ESC reviews and industry sources show that, for a typical household in metropolitan Melbourne using around 4,000 kWh of electricity a year on a single rate tariff, annual bills on the default offer sit in the mid to high $1,500s. That works out to roughly $130 each month, or just under $400 each quarter, before any concessions or solar exports are applied.

Your own bill may be higher or lower than these guide numbers based on factors such as household size, whether you work from home, heating and cooling habits, and the type of tariff you are on.

How usage affects your bill

Your retailer charges you for every kilowatt hour (kWh) of electricity your property uses. A stand‑alone house running ducted cooling and electric heating will usually consume far more than a small apartment that uses gas for hot water and heating.

Some of the main drivers of higher or lower usage include:

Number of people in the home and how often they are there
Appliance efficiency, especially heating, cooling, fridges, freezers and pool pumps
Use of electric vs gas for cooking, hot water and space heating
Working from home, gaming and home entertainment habits
Presence of an electric vehicle or other high‑load equipment

How tariffs affect what you pay

Two Melbourne households can use a similar amount of electricity but pay quite different amounts if their tariff structures and rates differ.

Common residential tariff types in Victoria include:

Single rate tariffs, where you pay the same usage rate (cents per kWh) regardless of the time of day.
Time of use tariffs, where daytime and early evening usage is more expensive and off‑peak periods such as overnight and weekends are cheaper.
Controlled load tariffs for specific appliances such as electric hot water systems that are metered separately at a lower rate.

If your household can shift some activities, like running the dishwasher or washing machine, into off‑peak times, a time of use tariff may reduce your overall bill compared with a simple flat rate.

Typical gas bills for Melbourne households

Natural gas remains common in many Victorian homes for space heating, hot water and cooking. Gas prices have been more volatile in recent years, so it is worth understanding how your charges are calculated.

Retailers bill you in megajoules (MJ) of gas used, based on the difference between your current and previous meter readings multiplied by a standard heating value. As with electricity, there is usually a daily supply charge plus a usage rate.

Typical annual gas bills for a three person Melbourne household that uses gas for heating and hot water often fall in the range of low to mid $1,000s, but costs can rise quickly during colder winters or for larger homes with ducted gas heating.

Seasonal bill patterns in Victoria

Both electricity and gas bills in Melbourne are highly seasonal:

Bills usually peak in winter when heating demand is high.
Summer bills can also spike during heatwaves when air conditioning works overtime.
Spring and autumn often bring lower, more stable bills, especially if you can use natural ventilation instead of mechanical heating and cooling.

When you compare quotes or look at your own bills, it is useful to review a full 12 months rather than focusing on just one quarter.

What makes up a typical Victorian energy bill

The total you see at the bottom of your bill is a combination of several components, not just the energy itself. Industry analysis from government and market bodies shows the following key cost elements:

Wholesale energy costs, which reflect what retailers pay generators for electricity or gas.
Network charges, which are the regulated costs of transporting energy through poles, wires and pipelines.
Environmental scheme costs linked to national and state programs that support renewable generation and energy efficiency.
Retail costs and margins, covering customer service, billing, metering and a modest profit margin.

Retailers bundle these cost components into the supply charge and usage rates on your plan. They may also apply discounts, rebates or other incentives, which can make it harder to compare options at a glance.

Understanding the numbers on your bill

Your energy bill will usually include:

The billing period and meter readings at the start and end
Total kWh of electricity and MJ of gas used
Usage broken into peak, shoulder and off‑peak time periods, if applicable
Daily supply charges for each fuel
Any discounts or concessions applied
Solar feed in credits, if you have rooftop solar

If you are not sure what a particular fee or line item covers, your retailer must explain it in plain language if you ask.

Victorian regulation and consumer protections

The energy sector in Victoria is heavily regulated, and several safeguards help protect residential and small business customers.

The Victorian Default Offer

The Victorian Default Offer sets a reference price for electricity. Retailers must use this reference when advertising discounts, so you can see how their market offers compare. If you have not signed a market contract or your previous deal has expired, you will usually be placed on this default option.

While the default offer is designed to be fair, it is not always the cheapest product in the market. Many Melbourne households can reduce their bills by moving from the default option to a sharper market contract, especially if they have not reviewed their plan in some time.

Clear information and billing standards

Victorian regulators set rules for billing formats, marketing practices and hardship support. These include requirements for retailers to:

Provide clear information about prices, fees and contract terms
Show how their offers compare to the reference price
Offer payment plans and hardship assistance where appropriate
Notify customers before a fixed term contract ends or prices change

If you feel you are not being treated fairly, you can raise the issue with your retailer first, then with the Energy and Water Ombudsman Victoria if it is not resolved.

How to check if your Melbourne bill is competitive

Because every household is different, there is no single "right" bill amount. However there are clear signs that it may be time to reassess your plan:

You have been on the same plan for years without reviewing it
Your discounts have expired or are about to end
You have received a letter about price changes or the end of a contract term
Your usage patterns have changed, for example you now work from home more often
Your bills are consistently higher than friends or neighbours with similar homes

A structured comparison takes into account your actual annual usage, tariff type and any solar exports, rather than just headline rates. This is where expert support can save both time and money.

Practical ways to reduce your energy costs

For many Melbourne households, savings come from a mix of choosing a better plan and using energy more efficiently. Some practical steps include:

Reviewing your current contract end date and any early termination conditions
Checking whether you are on a default offer or a market contract
Looking at your average daily usage on your bill over the past year
Identifying the biggest energy users in your home, such as heating, cooling and hot water
Making small behavioural changes like shorter showers, thermostat adjustments and turning appliances off at the wall when not in use

Over time, you might also consider upgrades such as better insulation, more efficient heating and cooling systems or a switch from gas to efficient electric appliances, especially as Victoria progresses towards its emissions reduction targets.

How Zembl can help Melbourne households

Zembl is an Australian owned service that makes it easier to compare residential and business energy plans and switch to a more cost effective option.

When you upload a recent bill, our Energy Experts:

Review your current rates, usage and tariff structure
Compare your plan against competitive offers from our panel of leading retailers
Highlight potential savings and any changes in contract terms
Explain the options in straightforward language so you can make an informed choice

If you decide to accept one of the recommended plans, we manage the paperwork and coordinate the switch with your new and existing retailers. Your power stays on throughout the process.

For small and medium sized businesses, we also offer specialised support, from reviewing electricity and gas charges through to more advanced procurement strategies for higher usage sites.

Why use a comparison service instead of going direct

Contacting multiple retailers individually, collecting quotes and comparing complex tariff structures takes time and energy. A comparison service can streamline this process by:

Bringing together offers from several retailers in one place
Standardising information so plans are easier to compare like for like
Drawing on experience with thousands of bills to spot patterns and potential issues
Helping you avoid common pitfalls such as focusing only on discounts while overlooking higher base rates

As a signatory to industry codes of conduct, Zembl focuses on responsible comparison practices and clear disclosure, so you can be confident that any recommendations are designed around your needs.

Next steps for your Melbourne energy bill

Whether your latest bill looks reasonable or uncomfortably high, taking a little time to understand the drivers can pay off over the long term.

If you want guidance tailored to your household or business, you can request a free energy review. Send us a recent bill and a few basic details, and a Zembl Energy Expert will contact you to walk through potential options for reducing costs.

There is no obligation to switch, and if you do move to a new offer, Zembl will coordinate the changeover so you can focus on day to day life while still taking control of your energy spend.

To get started, complete the short form on our platform and upload your latest bill. We will do the detailed comparison work in the background and come back to you with clear, practical recommendations.