Cost cut in Victorian Default Offer 2021 from 2022

24 December 2021

Residential and small business customers on a default offer will see up to a six per cent reduction in their average annual cost according to the 2022 Victorian Default Offer (VDO)* published by the Essential Service Commission (ESC)

The 2022 VDO is valid for six months starting 1 January 2022 and ending 30 June 2022 to match the timing of default offer price changes with network tariff changes in Victoria from 1 July 2022.

Wholesale electricity prices are predicted to drop in Victoria. Pricing is reflected in the fall in VDO prices across all Victoria's five distribution zones, including AusNet Services, Citipower, Jemena, Powercor and United Energy. The average annual bill for small customers on the VDO will decrease by approximately five per cent for residential customers. Small business customer invoices are expected to decrease by around six per cent from 01 January 2022. 

The change will vary depending on the distribution zone and the type of tariff structure (i.e. Flat or Time Of Use) of the default standing offers.

Energy On has carefully assessed our energy prices in Victoria to ensure that they are compliant with the VDO prices and market competitive. 

Energy On encourages Victorian customers to seek support through our Financial Hardship Policy if they struggle to pay their bills.

The Essential Services Commissions website offers more insight into the VDO.


The Victorian Default Offer (VDO) is a simple and trusted electricity price that is set by the Essential Services Commission (ESC), not energy companies. VDO prices are also the maximum price for all residential and small business customers (customers who consume less than 40-megawatt hours of electricity per year) in an embedded network.