2021 Victorian Default Offer14 January 2021
2021 Victorian Default Offer (VDO) prices are set to decrease from the 2020 VDO prices. Some Energy On customers in Victoria will see a reduction in their electricity bills in 2021; however, many are already below the VDO.
From 1 September 2020, the VDO pricing became the new maximum price for all households and small businesses (consuming less than 40-megawatt hours of electricity per year) in Embedded Networks in Victoria. This welcome change for consumers was supported by Energy On as outlined in our previous article.
The forecasted decrease in wholesale electricity and network costs in 2021 have led to the VDO falling by 10 per cent or $159.00 a year on average for households, and 14 per cent or $916.00 a year on average small businesses in 2021.
The current VDO determination is for a 12-month regulatory period starting 1 January 2021. There might be future consultation and changes by the Essential Service Commission (ESC) in the second half of 2021 if the mid-year changes in network tariffs affect VDO prices.
Energy On is proud that our energy prices always comply with the regulations while remaining fair, flexible, and competitive to the market. We achieve this by reviewing the rates regularly throughout the year, and proactively propose pricing initiatives following changes in the regulations and significant events.
Energy On recognises the potential impact of Covid-19 on our customers and, despite an increase in costs, we have decided that electricity rates were not increasing during 2020. A letter: “COVID-19: No Electricity Rate Increase” was sent out to all our customers.
For customers struggling to pay their bills, Energy On encourages Victorians to seek support through our Financial Hardship Policy.
For more information on the VDO, you can visit the Essential Services Commissions website.