Latest Energy Price Trends in Victoria: What to Expect

• March 31, 2025
• JJS
• Blog
• No Comments

If you’re a Victorian resident, you’ve likely noticed how energy prices fluctuate over time. With 2025 on the horizon, many are wondering: will energy prices go up or down? How will the shift to renewable energy impact your power bills? At UtilityDeals, we’re here to simplify the latest trends and help you prepare for the changes ahead.

The Current Energy Landscape in Victoria

The Australian Energy Market Operator (AEMO) has warned of a potential gas shortage starting as early as winter 2025. If this happens, energy prices are expected to rise, making gas and electricity more expensive for households and businesses alike.

However, Victoria’s increasing investment in renewable energy—such as wind, solar, and battery storage—is helping to keep energy prices low in some areas. On days when renewable generation is high, electricity costs can even drop to near zero. But renewables come with their own challenges, as they depend heavily on weather conditions. When solar or wind energy is insufficient, the state relies on gas-fired power plants, which can drive up energy prices during shortages.

Why Gas Prices Are Rising

Victoria is facing a gas supply crisis. Local gas production has declined due to past exploration bans, and while restrictions have eased recently, new gas projects take years to develop. This means that in the short term, energy prices for gas are likely to increase, impacting everything from heating to cooking and hot water costs.

How Rising Energy Prices Affect Households

For households, higher energy prices mean increased bills, especially during winter when heating costs spike. The Victorian government is encouraging residents to switch to electric appliances, such as heat pumps and induction cooktops, which are more energy-efficient and cost-effective in the long run.

The Impact on Businesses

Businesses, particularly those in hospitality and manufacturing, rely heavily on gas for daily operations. Rising energy prices could force businesses to increase the cost of goods and services, affecting consumers across the board.

What’s Being Done to Address the Issue?

The Victorian government is taking steps to mitigate rising energy prices:

1. Expanding Renewable Energy: More solar and wind farms are being built, and larger battery storage systems are being installed to reduce reliance on gas.
2. Fast-Tracking Gas Projects: New gas projects are being expedited, but these will take time to come online.
3. Encouraging Electrification: Rebates are being offered to households and businesses that switch from gas to electric appliances.

What Can You Expect in 2025?

While electricity energy prices are expected to remain stable or even decrease due to renewable energy, gas energy prices are likely to rise. If your home or business relies on gas, now is the time to consider switching to electric alternatives to avoid higher costs.

Tips to Lower Your Energy Bills in 2025

Here are some practical steps to reduce your energy prices:

1. Upgrade to Energy-Efficient Appliances: Older appliances consume more energy. Switching to 5-star energy-rated models can save you money in the long run.
2. Install Solar Panels: Take advantage of government rebates and generate your own electricity.
3. Use Battery Storage: Store excess solar energy for use during peak times or at night.
4. Shift Usage to Off-Peak Hours: Run high-energy appliances like washing machines and dishwashers during cheaper off-peak periods.
5. Improve Insulation: Seal gaps around doors and windows to reduce heating and cooling costs.
6. Compare Energy Providers: Use comparison tools like UtilityDeals to find the best plans and save hundreds annually.

How UtilityDeals Can Help

At UtilityDeals, we make it easy to navigate the changing energy prices landscape. Our FREE comparison tool helps you find the best energy plans tailored to your needs. Whether you’re looking to switch providers, explore renewable energy options, or simply save on your bills, we’ve got you covered.

Visit our website today to compare energy plans and start saving: www.utilitydeals.com.au. Or call us at 03-9118 0426 to speak with one of our energy-saving experts.

Stay Ahead of Rising Energy Prices

Victoria’s energy system is evolving, and while energy prices may fluctuate, there are steps you can take to stay in control. By adopting energy-efficient practices and exploring renewable options, you can protect yourself from rising costs and contribute to a greener future.

Don’t let rising energy prices catch you off guard—let UtilityDeals help you take charge of your energy costs today!