Increase in the Victorian Default Offer from 01 Sept 2021

26 August 2021

Following the state regulator’s decision for an out-of-cycle amendment to the 2021 Victorian Default Offer on 01 September 2021, residential and small business customers on flat standing offers will see a minimal increase in their cost of electricity. 

 The Essential Services Commission (ESC) independently regulates essential services in Victoria. Primarily, the ESC is responsible for protecting customers by watching over pricing, quality, and the reliability of these services.

The Victorian Default Offer (VDO) is a simple and trusted electricity price set by the ESC, not energy companies. VDO prices are also the maximum price for all residential and small business customers (those who consume less than 40-megawatt hours of electricity per year) in Victoria, which also applies within Embedded Networks.

The Australian Energy Regulator (AER) approved the increase in network charges by the Victorian distribution businesses from 1 July 2021 to align Victoria with the other National Electricity Market jurisdictions to operate on a financial year, instead of a calendar year basis.

In response, the ESC has amended the Victorian Default Offer 2021 price determination during the regulatory period 1 September to 31 December 2021.

The ESC has advised that residential customers on the flat VDO tariff will see their electricity costs increase by up to $6.00 a month. In comparison, most small business customers on flat VDO tariffs will see increases of between $12.00 and $32.00. 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.

Flat VDO tariff customers will see their monthly prices increase from 1 September to 31 December 2021. However, ESC Pricing Director, Marcus Crudden, explained that the 2021 VDO is still lower than the 2020 VDO and the high standing offers charged before the ESC introduced the default offer in June 2019.

Energy On is very well versed in compliance across the National Electricity Market and Embedded Network regulations. We are proud that our energy prices in Victoria are compliant with the VDO prices and market competitive.

Customers within an Energy On embedded electricity network continue experiencing the benefits of fair electricity pricing on invoices. Complimenting fair pricing is a caring Customer Service Team, helpful payment assistance procedures, and a comprehensive Hardship Policy for anyone experiencing difficulties.

Energy On has set protections in place for customers struggling to pay their bills. We encourage our Victorian customers to seek assistance after referring to our Financial Hardship Policy.

The Essential Services Commission's website has more information on the VDO.