Victorian households paying hundreds more for electricity than neighbours

Households in parts of Melbourne could be paying as much as $252 more for electricity than nearby neighbours, because of prices set by their distributor.

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According to energy comparison site, Mozo.com.au, prices in Victoria can vary by as much as $373 depending on which distribution area you’re in.

“Living on the right side of an arbitrary energy distribution boundary can mean paying hundreds more each year, and it’s simply luck of the draw,” said Mozo’s Kirsty Lamont

For example, in Melbourne, residents in parts of Heatherdale Rd, Vermont, are paying an average $252 more on their annual electricity bill than houses on the opposite side of the street.

"Given a high proportion of an electricity bill is made up of costs decided by the distributor, it’s all the more reason for consumers to shop around on the thing they can control – their provider”.

Across the state, Victorians could save as much as $856 by switching from the least competitive electricity deal to the best offer on the market.

“This is the second highest saving to be made out of all the competitive electricity markets, second only to NSW.”

“Even switching from the average plan to the best can save a family $319, which is better off in your back pocket than your energy provider’s,” said Lamont.

Around the country:

• NSW households in regional areas are paying an average $364 more than their city counterparts

• Brisbane and Gold Coast households are paying $259 more than the rest of the state

• South Australians are paying the most of all the competitive energy markets, forking out $588 more than their Victorian neighbours on the average bill

Mozo’s findings coincide with the launch of its energy comparison service, which compares 1,100 offers from 22 energy providers across 30 regions nationwide.

The tool lets consumers compare energy plans available in their area, quickly identify the lowest cost plans for their needs, and switch to the best deal on offer.