Victorian Default Offer

We determine prices for standing offers covering electricity retail services in Victoria – Victorian Default Offer prices.

Overview

The Victorian Default Offer, is a simple and trusted electricity price that is set by us, not energy companies.

It provides Victorian consumers access to a fair electricity deal even if they are unable or unwilling to engage in the retail market.

We set the default offer each year after assessing the efficient costs retailers need to recover to provide electricity to Victorian customers. The default offer will not necessarily be the lowest price available to you.

Key information about the Victorian Default Offer

Who can ask for the Victorian Default Offer

Most Victorian households and small businesses can ask for a default offer. Small business customers that use less than 40 megawatt hours of electricity per year can also ask to be put on the default offer.

Electricity retailers must make the Victorian Default Offer available to customers who request it, but can continue to offer customers contracts that differ from the default offer, through market offers.

The default offer also acts as a reference price that retailers must use to advertise the discounts on their market offers. This can help customers find the market offer that will give them the best value for money on their electricity use.

For more information, see the Department of Environment, Land, Water and Planning's frequently asked questions about the Victorian Default Offer.

The Victorian Default Offer regulates standing offer prices

The default offer we set applies to standing offers. Standing offers are contracts that electricity retailers must provide service under if you:

never signed up for an electricity contract
entered into an electricity contract, cancelled the contract within the cooling-off period, but continue to use electricity without entering into another contract
moved into a new address and use electricity without entering into a contract or
specifically asked for a standing offer.

In comparison, market offers are competitive offers set by electricity retailers and may include a discount. We do not set the prices for market offers.

If you are on a market offer, you can request to be moved on to the Victorian Default Offer tariffs, or use the default offer as a comparison point to see if you are getting a good deal. The default offer will not necessarily be the lowest price available to you. We recommend shopping around to find the right retail electricity offer for you.

Find out which offer you're on by asking your energy retailer or checking your bill.

The Victorian Default Offer applies to embedded network customers

Victorian Default Offer prices are now also the new maximum price for all households and most businesses in embedded networks. This change follows our review of the maximum prices embedded networks and other exempt sellers may charge.

You may be in an embedded network if you:

live in an apartment complex, retirement home or caravan park
are a small business tenant in a shopping centre.

Current default offer prices

The current tariffs that electricity retailers can charge customers on the Victorian Default Offer apply from 1 September to 31 December 2021. The current tariffs reflect the network tariffs approved by the Australian Energy Regulator on 15 June 2021.

Default offer flat tariffs

The Victorian Default Offer flat tariffs include a daily supply charge and a usage charge (per kilowatt hour). Differences in tariffs across distribution zones reflect the unique costs of providing electricity services in each area.

Residential customers (GST inclusive)

Distribution zone	Supply charge ($ per day)	Usage charge structure	Usage charge ($ per kWh)	Controlled load ($ per kWh)
AusNet Services	$1.1937	Block 1 (up to 1020kWh used in a quarterly period) Block 2 (balance of usage in a quarterly period)	$0.2810 $0.2972	$0.1971
CitiPower	$1.1126	Anytime	$0.2324	$0.1673
Jemena	$1.0710	Anytime	$0.2490	$0.1899
Powercor	$1.2678	Anytime	$0.2405	$0.1733
United Energy	$1.0279	Anytime	$0.2437	$0.1758

Small business customers with consumption less than 40 MWh per year (GST inclusive)

Distribution zone	Supply charge ($ per day)	Usage charge structure	Usage charge ($ per kWh)
AusNet Services	$1.1937	Block 1 (up to 1020kWh used in a quarterly period) Block 2 (balance of usage in a quarterly period)	$0.3139 $0.3457
CitiPower	$1.3363	Anytime	$0.2296
Jemena	$1.2380	Anytime	$0.2597
Powercor	$1.3956	Anytime	$0.2387
United Energy	$1.1558	Anytime	$0.2388

Default offer two period time of use tariffs

The Victorian Default Offer two period time of use tariffs include a daily supply charge and usage charges (per kilowatt hour) for peak and off peak periods. Differences in tariffs across distribution zones reflect the unique costs of providing electricity services in each area.

Residential customers (GST inclusive)

Distribution zone	Supply charge ($ per day)	Peak usage charge ($ per kWh)	Off peak usage charge ($ per kWh)	Controlled load ($ per kWh)
		3pm to 9pm everyday	all other times
AusNet Services	$1.1937	$0.3906	$0.1981	$0.1971
CitiPower	$1.1126	$0.3244	$0.1849
Jemena	$1.0710	$0.3053	$0.1933
Powercor	$1.2678	$0.3305	$0.1916
United Energy	$1.0279	$0.3347	$0.1966

Small business customers with consumption less than 40 MWh per year (GST inclusive)

Distribution zone	Supply charge ($ per day)	Peak usage charge ($ per kWh)	Off peak usage charge ($ per kWh)
		9am to 9pm weekdays	all other times
AusNet Services	$1.1937	$0.3368	$0.1824
CitiPower	$1.3363	$0.2857	$0.1675
Jemena	$1.5820	$0.2989	$0.1673
Powercor	$1.3956	$0.3024	$0.1686
United Energy	$1.1558	$0.2994	$0.1725

Our price determination covers all types of standing offers, including those based on time-of-use, demand, and flexible tariff structures. More information on the framework we have used to determine the current Victorian Default Offer is contained in our final decision paper on the variation.

If you're not sure which distribution zone you're in, you can look it up on your electricity bill or view more information on the Victorian Government's energy website.

Upcoming changes to the Victorian Default Offer

We are undertaking our annual review of approach for the default offer to apply from 1 January 2022.

Want to act now?

If you want to find out more you can:

call your electricity company and ask them whether the default offer is right for you
find the best electricity offer for you on the Victorian Energy Compare website - the Victorian Government's free, independent energy price comparison tool.

If you have a complaint you are not able to resolve with your energy company, call the Energy and Water Ombudsman (Victoria) on 1800 500 509.