Bills set to rise for Victorians paying default energy prices

Victorian customers still paying default electricity prices will be paying more for power after the state’s regulator announced a small price rise.

The Victorian Default Offer (VDO) – the state’s regulated ‘fair price for energy’ – is set to increase by around $4 a month for households, on the back of the Essential Services Commission (ESC) allowing distributors to increase their network charges.

Despite the default price increasing, bill-payers have been assured these prices are still substantially lower than those offered before the default offer was introduced in July 2019, said ESC pricing director, Marcus Crudden.

“Network charges make up about a third of retailer costs, so it is important the Victorian Default Offer reflects costs paid by electricity retailers to the distribution businesses,” he said. “A household on the default offer will still pay around $140 less over this year, compared to 2020.”

The ESC approved changes to the network distribution charges on 15 June 2021, resulting in the need for more revenue from electricity retailers to recover these costs.

The final VDO price is still yet to be released, but is due to come into effect on 1 September 2021, however the ESC has noted that bills will increase by $3 to $6 per month on average for residential customers, while small businesses can expect a monthly price hike between $12 and $31.

These changes, although only minimal, should still serve as a reminder to customers that default offers are not designed to be the cheapest deals in market, added Mr Crudden.

“We encourage customers to shop around to see whether they can get a better deal, and if you’re having problems paying your bill, please reach out to your retailer for support,” he said.

“Under Victoria’s payment difficulty framework, energy retailers are required to help customers with flexible payment options, advice on concessions they may be entitled to and information on how to reduce energy use.”

A recent report from the regulator found that around two million Victorian customers are still paying default energy prices.

Compare Energy Providers in Victoria

Here are some cheap energy deals in Victoria available on our database. Remember to use our free comparison tool for a range of quotes specific to your area and needs. Always check the fine print before signing up to a deal.

Here are some sponsored 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†. 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 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.

Image credit: MEzairi/Shutterstock.com

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