This report aims to provide consumers with information about the energy market that would promote effective competition, to achieve the best outcomes for Victorian energy consumers.
Victorian Energy Market Report
The Victorian Energy Market Report aims to build consumer understanding of how the market operates.
Our latest quarterly report includes:
- Economic analysis of prices and competition in Victorian retail energy markets: We show that there has been an increase in median retail electricity prices of six to eight per cent from January to September 2022 on the back of higher electricity wholesale costs over the period. Although retail prices have risen over 2022, they are still relatively low in comparison to the last four years. We also find a strong correlation between electricity offer prices and prices paid by consumers - meaning that electricity offers appear to be a reasonable measure of prices paid.
- New compliance and enforcement priorities for 2022-23: This article presents our compliance and enforcement priorities, which hold energy companies to account by ensuring they adhere to protections on important matters facing consumers such as wrongful disconnections, bill stress, and switching energy contracts or retailers with confidence.
- Energy in Victoria: This section provides a summary of major activity across the energy sector in Victoria between April and June 2022. This includes a summary of our compliance and enforcement actions, the experience of customers experiencing payment difficulty, and recent changes to the energy market.
Victorian Energy Market Report: September 2022
Key messages and findings
As the state energy regulator, we regularly monitor and report on the competition and efficiency of the Victorian retail energy market
In this latest Victorian Energy Market report, we have included analysis on the price of retail energy offers available in the past financial year (2021-22) and the prices that consumers have paid for electricity. This report highlights:
- Substantially higher wholesale electricity and gas costs in 2022 have increased energy retailers’ costs.
- Data collected from the past quarter shows that median retail electricity offer prices increased by one to two per cent in the 2021-22 financial year, with an increase of six to eight per cent from January to September 2022 on the back of higher electricity wholesale costs over the period.
- Although retail prices have risen over 2022, they are still relatively low in comparison to the last four years.
- We have observed a strong correlation between electricity offer prices and prices paid by consumers, meaning that electricity offers appear to be a reasonable measure of prices paid.
- An analysis of electricity offer dispersion between May and September 2022, shows an upward movement of offers towards the Victorian Default Offer.
- In retail gas markets, residential and small business offers respectively increased by 19 and 18 per cent last financial year (2021-22) on the back of elevated gas wholesale costs over the period.
The commission has been focused on promoting and protecting the interests of Victorian energy consumers during this period of wholesale energy markets volatility
We have been closely monitoring the financial viability of Victoria’s energy sector as well as energy retailers’ compliance with important rules in place to help consumers to navigate the shifting energy market.
We have continued to facilitate energy market entries and exits in the interests of Victorians including coordinating with fellow regulators, market bodies and energy businesses to transfer customers of failed retailers to new providers to make sure their energy supply remains connected.
Best offer messaging compliance program
We have also initiated a “best offer” messaging compliance program to make sure retailers are regularly and effectively providing customers with information as to whether or not they are receiving their retailer’s best offer. Our focus on best offer messaging, which is one of our energy compliance and enforcement priorities this year, is a continuation of our ongoing work to facilitate billing accuracy for Victorian consumers.
Victorian energy market report and updates in 2021-22
Victorian energy market report and updates in 2020-21
Victorian energy market report and updates in 2019-20
Victorian energy market report and updates in 2018-19
Victorian energy market report and updates in 2017-18
Victorian Energy Market Report 2016-17
Licensed energy businesses audit fact sheets 2016-17
Victorian Energy Market Report 2015-16
Victorian Energy Market Report Updates: 2016-2017
Energy retail performance reports
These reports pre-date the Victorian Energy Market Report.