EnergyAustralia vs COVAU: Which Is Cheaper for VIC Households in 2026?
Emma Wilson · 2026-09-21 · 6 min read
If you're comparing EnergyAustralia vs COVAU to work out which is cheaper for VIC households in 2026, the honest answer is: it depends on your usage pattern, your postcode, and which specific plan each retailer currently has on offer. Victoria's deregulated electricity market means both EnergyAustralia (a large, long-established "Big Three" retailer) and Covau (a smaller, digital-first challenger) set their own rates and discounts, and those rates move throughout the year. This guide breaks down how the two retailers actually differ, what to look at beyond the headline discount, and how to find the genuinely cheapest option for your household.
EnergyAustralia vs COVAU: How the Two Retailers Compare
EnergyAustralia is one of Australia's largest energy retailers, servicing millions of customers nationally with a broad range of plans, bundled offers (like EnergyAustralia's solar and EV add-ons), and a large call centre and app-based support team. It typically offers a market offer with a conditional pay-on-time discount, plus occasional sign-up incentives such as gift cards or bill credits.
Covau is a smaller, Victoria-focused retailer that positions itself around simple, low-fee electricity plans, often with no lock-in contracts and app-based account management. Because it runs a leaner operation with less advertising and fewer call centre staff, Covau can sometimes offer more competitive usage rates or lower supply charges — but its smaller footprint also means less brand recognition and a smaller support team, which matters if you value phone-based customer service.
Neither retailer is universally cheaper. In Victoria's Australian Energy Regulator (AER)-monitored market, every retailer publishes a Victorian Default Offer (VDO) comparison point, and their actual market offers move up and down relative to that benchmark throughout the year. A retailer that's cheaper in your area today may not be in six months.
What Actually Determines Which Is Cheaper
Don't just compare the advertised "% off" headline — it's calculated against each retailer's own reference price, so a bigger discount doesn't always mean a lower bill. Instead, compare:
- Usage rate (c/kWh) — the price per unit of electricity you consume, which varies by distribution zone (Citipower, Powercor, Jemena, United Energy, AusNet) within Victoria.
- Supply/daily charge (c/day) — a fixed fee charged regardless of usage, which matters more for low-usage households (e.g. small apartments) than high-usage ones.
- Conditional discounts — many EnergyAustralia plans require paying on time or via direct debit to unlock the advertised discount; missing a payment can bump you back to the higher base rate.
- Contract terms and exit fees — Covau generally markets no lock-in contracts, while some EnergyAustralia plans may have different terms depending on the offer.
- Solar feed-in tariff (FiT) — if you have solar panels, the rate you're paid for exported electricity can meaningfully offset your bill, and this varies significantly between retailers.
- Time-of-use vs flat rates — if you're on a smart meter (most VIC homes are), your plan may charge different rates for peak, off-peak and shoulder periods, which changes the comparison depending on when you use power.
Because these variables interact differently for every household, the only reliable way to know which retailer is cheaper for your home is to compare actual dollar estimates based on your real usage, not just the headline discount. You can see what you could save in 2 minutes with a free, no-obligation bill check against current EnergyAustralia, Covau, and other retailer offers.
A Note on the Victorian Default Offer (VDO)
The VDO is a regulated "reference price" set annually by the Essential Services Commission (ESC) for Victoria. It's not necessarily the cheapest deal available, but it acts as a useful ceiling — if either EnergyAustralia's or Covau's market offer comes in below the current VDO for your distribution zone, that's a good baseline signal you're getting a competitive rate. Both retailers must offer the VDO as an option, so if you're unsure whether a market offer is genuinely good value, ask how it compares.
Household Scenarios: Who Tends to Win
While exact numbers vary constantly and by postcode, some general patterns tend to hold:
- Low-usage households (apartments, singles): Supply charges make up a bigger share of the bill, so a retailer with a lower daily fee — often the leaner operator — can come out ahead even with a similar usage rate.
- High-usage households (families, all-electric homes): The usage rate (c/kWh) matters more than the daily charge, so it pays to compare the per-kWh price closely, especially during peak periods if you're on time-of-use pricing.
- Solar households: The feed-in tariff can swing the comparison substantially — a slightly higher usage rate paired with a much better FiT can still work out cheaper overall.
- Households that value phone support and bundled services: EnergyAustralia's larger scale may be worth a small premium if you want traditional phone support, gas bundling, or broader product options.
Because rates and discounts are updated regularly and vary by distribution zone, we won't quote specific per-kWh figures here — always compare current, live offers rather than relying on numbers that may be outdated by the time you read this.
Beyond Electricity: Check Your Whole Energy Bill
If you're comparing electricity retailers, it's also worth checking whether bundling gas with the same provider saves money, or whether a separate gas deal is cheaper — see our gas plan comparisons. And if you haven't reviewed your electricity plan structure in a while, our Victorian electricity guide explains distribution zones, meter types, and how the VDO works in more detail. It's also worth checking our broader electricity deals page to see the current range of offers beyond just these two retailers — sometimes a third provider beats them both.
Steps to Take
- Pull your last 3 months of bills (or check your retailer's app) to find your actual kWh usage and current rates.
- Confirm your distribution zone (Citipower, Powercor, Jemena, United Energy, or AusNet) — it's usually listed on your bill.
- Compare EnergyAustralia's and Covau's current market offers for your zone against the Victorian Default Offer as a sanity check.
- If you have solar, compare feed-in tariffs side by side, not just usage rates.
- Run a free personalised comparison at /savings to see estimated annual costs for your actual usage across multiple retailers, not just these two.
- Once you've chosen, check for exit fees on your current plan before switching, and confirm the new plan's discount conditions (e.g. pay-on-time) so you don't lose it accidentally.
Rates, discounts, and offers change frequently and vary by postcode and distribution zone — the information above is general guidance, not a quote. Always compare current, live offers before switching.
The fastest way to settle the EnergyAustralia vs Covau question for your own home is to stop guessing and get a real number. Get your free personalised bill check at /savings and see exactly what each retailer would cost you based on your actual usage — it takes about two minutes and could reveal savings you're currently missing. If you're also due for a switch on other bills, browse our electricity deals while you're at it.