Default energy prices in Victoria to continue falling next year

Victorians still paying default electricity prices will be greeted with cheaper power bills from next year, according to the regulator.

Annual bills for households on the Victorian Default Offer (VDO) – the state’s reference price for energy – is set to drop by around $70 from 1 January 2022.

Small business customers on the default price will also see an average saving of $336 a year as a result of the change.

Falling wholesale power prices have steered these changes, Essential Services Commission pricing director Marcus Crudden explained.

“The reduction to the default offer follows a careful assessment of the costs involved in supplying electricity to customers,” he said. “The fall in the default offer is mainly driven by lower wholesale electricity purchase costs, with lower prices flowing through to Victorian households and small businesses on the default offer from the start of 2022.”

The impending decrease to the VDO will help around 200,000 households and 50,000 small businesses in Victoria save on energy costs. And an additional 140,000 customers living in an embedded network, such as an apartment building or caravan park, will also benefit.

These changes come after the default tariff already underwent a minor change in price back in September, which saw residents pay an extra $4 a month as a result of higher network costs.

Now’s the time for Victorians to take control of the market

Although the VDO is about to become cheaper, Victorians are being urged to take control of their energy bills, as opposed to just accepting and paying the default price, ReAmped Energy spokesman Simon Downes said.

“We know it is a very active, very competitive market and for any consumer, they have to be engaged in it, and they have to monitor what’s going on,” he said. “We encourage people to go to the customer comparison sites and check on the latest offers and price movements.

“You can not only save yourself money but you can have a real positive impact on the market in general by forcing the retailers to be more competitive. You can only do that by switching. A retailer is only going to change its ways and become more price competitive if it has to and it sees customers leaving.

“Here at ReAmped, we have a really good experience of the appetite for saving money in Victoria. We only launched in Victoria a few months back and since then we’ve had thousands and thousands of Victorians sign up because there is a real culture of switching and chasing the best deals in Victoria.”

Compare Energy Plans Victoria

Here are some of the cheapest electricity deals in Melbourne. For a range of quotes specific to your area and needs, its best to use our free comparison tool.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. Costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The next three tabs feature products exclusively from AGL, EnergyAustralia and Origin.

Here are the AGL Energy plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are the EnergyAustralia plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are the Origin Energy plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower energy network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

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