Your guide to the 2026 rates update, yearly estimates, and the new midday Smart Rate.
The energy market in Victoria is evolving as more renewable electricity flows into the grid. While these updates are led by the regulator and local networks, we are here to help you navigate the changes by putting the right tools in your hands.
Using the Red Energy app is the easiest way to see these changes in action. You can track your daily usage, see how much solar you’re exporting (if you have solar panels), and project your upcoming costs, helping you stay in control of your bills without needing to pick up the phone.
Download our app today.
Prefer desktop? Log into MyAccount,
When do the new rates start?
The commencement date for updated rates depends on your specific energy contract:
- Standard retail contracts: 1 July 2026.
- Market retail contracts: 1 August 2026.
- Fixed rate plans: If you have a fixed term contract, your rates are locked in until the end of your current contract. For customers transitioning to the new network Smart Rate tariff structure, you will still get the same rates as offered in your fixed term contract and will receive an additional hour of lower off-peak pricing each day.
To determine your current contract type: Check your latest bill for your plan name – then search for your energy plan’s Fact Sheets using your postcode. You will find the offer type under ‘Offer details’.
Simpler discount
Following a recent update by the Victorian energy regulator, the way your Pay on Time™ Discount is applied is changing. If your plan includes this discount, it will now be applied automatically to every single bill you receive.
What this means for you is a more seamless experience. It ensures you always get the full value of your plan, providing you with more certainty over your energy costs
The new midday Smart Rate
If you have received an email or letter mentioning a move to the “Smart Rate”, your plan structure is changing. This specific update applies to Victorian homes on a Residential Time-of-Use or Residential Demand Tariff, moving them to a new three-part tariff structure designed to reward them for using power when renewable energy is most abundant.
If your notice does not mention the Smart Rate, your tariff structure remains the same, although your usage and supply charges may still be updated as part of the annual rates review.
Understanding your new Smart Rate window
- Smart Rate (11 am – 4 pm): This is where rates are at their lowest.
No solar panels? No problem! The Smart Rate allows eligible homes to access these lower rates by using power while renewable energy is abundant in the grid.
- The Evening Peak (4 pm – 9 pm): This is when the grid is under the most pressure. To give you more time to manage your usage, the peak period now starts at 4pm – an hour later than many older plans.
- Off-Peak (All other times): A steady, standard rate for the rest of your day and night.
Take control: Use the Red Energy app to track your usage and see how your appliances are powered during the different rate windows.
Beat the Estimate
Your notice includes a yearly cost estimate based on your past usage. Because this is just a guide, you have the opportunity to manage your actual usage by shifting when you use your heavy appliances.
- Move your chores: Consider setting timers for your dishwasher or washing machine to run during the midday window.
- Charge & filter: If you have an electric vehicle, charging it midday is often the most cost-effective time. This also applies to running pool pumps.
- Monitor the peak usage: Shifting even one or two daily tasks away from the 4pm–9pm peak can help you manage your total bill over the year.
Total choice and control
Changes like the new residential Smart Rate are designed to help you make the most of cheaper energy. However, if your assigned tariff structure doesn’t suit your household routine or business operations, you have the flexibility to change it at any time by contacting us.
Residential time of use customers have the choice to switch to a Flat Rate tariff, while business customers can choose between a Flat Rate or Demand Tariff.
How to get in touch
The easiest way to manage your plan is through the Red Energy app or by logging into MyAccount,
If you would like to make changes to your plan or speak with us, our local award-winning team is here to help:
Here are some useful links for Victorian customers
Frequently asked questions
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Why are my rates different from my friend’s in another suburb?
Victoria has five different electricity networks. Each one sets its own prices for the poles and wires in their specific area, which is why rates can vary depending on where you live.
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Do I need a new meter for the Smart Rate?
If you’ve received a letter about these changes, it means you already have a smart meter that can handle the new "three-part" structure. You don’t need to do a thing - the update happens automatically on our end.
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What if I already have solar panels?
The Smart Rate is the perfect partner for your solar system. By running heavy appliances midday, you use your own solar power first. On cloudy days when your panels need a boost, the Smart Rate acts as a low-cost backup, ensuring any extra power you pull from the grid is at the day’s lowest rate. It’s the most effective way to maximise your solar and avoid higher evening prices.
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When does my new plan start?
Your specific start date is listed on the front of your letter. Most customers will move to the new rates on either 1 July or 1 August 2026.
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Why is my "Peak" period shorter now?
If you are moving to a Smart Rate, the Peak period actually starts an hour later than it used to (moving from 3 pm to 4 pm). That’s one less hour of peak pricing every single day.
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Can I switch back to a Flat Rate later?
Absolutely. You’re not locked in. If your tariff structure doesn’t suit your routine or business operations, just contact us to request a change at any time. Residential time of use customers can switch to a Flat Rate, while business customers can choose between a Flat Rate or a Demand tariff.