We determine prices for standing offers covering electricity retail services in Victoria – Victorian Default Offer prices.
Victorian Default Offer
Overview
The Victorian Default Offer, introduced by the Victorian Government on 1 July 2019, is a simple, trusted and reasonably priced electricity option that safeguards consumers unable or unwilling to engage in the electricity retail market.
Every Victorian household and small business (with the exception of embedded network customers) can now ask for a default offer, or can use it to compare against offers to ensure they’re getting value for money on electricity.
Electricity retailers must make the Victorian Default Offer available to customers who request it. Electricity retailers may continue to offer customers contracts that differ from the Victorian Default Offer, through market offers.
How the Victorian Default Offer is set
The price of electricity under the Victorian Default Offer is set by us, and is not set by energy companies. Most customers on a standard contract (or standing offer) will now receive the Victorian Default Offer. Electricity retailers may continue to offer customers contracts that differ from the Victorian Default Offer, through market offers.
From 1 January 2020, we have determined the tariffs that your electricity retailer charges you if you are on the Victorian Default Offer. Our price determination also covers all types of standing offers, including those based on time-of-use, demand, and flexible tariff structures – broadening the Victorian Default Offer to provide a safeguard for all standing offer customers. Find out more about our final decision and price determination on tariffs to apply for the period commencing 1 January 2020.
Our determination is made under the legislative framework for regulation of standing offer prices, established by the Victorian Government on 30 May 2019 by the Governor in Council Order. The order was made under section 13 of the Electricity Industry Act 2000 and published in the Government Gazette.
Prices from 1 January to 31 December 2020
The below prices apply for the Victorian Default Offer for the period 1 January to 31 December 2020.
The Victorian Default Offer includes a daily supply charge as well as a usage charge (per kilowatt hour). Differences in tariffs across distribution zones reflect the unique costs of providing electricity services in each area.
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.
Default offer for domestic customers (GST inclusive)
|
Distribution zone |
Supply charge ($ per day) |
Usage charge structure |
Usage charge ($ per kWh) |
Usage charge |
|---|---|---|---|---|
|
AusNet Services |
$1.1408 |
Block 1 (up to 1020 kWh per quarter) Block 2 (>1020 kWh per quarter) |
$0.3072 $0.3272 |
$0.2230 |
|
Citipower |
$1.1309 |
Anytime |
$0.2517 |
$0.1954 |
|
Jemena |
$1.0431 |
Anytime |
$0.2787 |
$0.2086 |
|
Powercor |
$1.2619 |
Anytime |
$0.2640 |
$0.2008 |
|
United Energy |
$0.9236 |
Anytime |
$0.2927 |
$0.2080 |
Default offer for small business customers with consumption less than 40 MWh per year (GST inclusive)
|
Distribution zone |
Daily charge ($ per day) |
Variable charge structure |
Variable charge ($ per kWh) |
|---|---|---|---|
|
AusNet Services |
$1.1408 |
Block 1 (up to 1020 kWh per quarter) Block 2 (>1020 kWh per quarter) |
$0.3407 $0.3795 |
|
Citipower |
$1.3386 |
Anytime |
$0.2667 |
|
Jemena |
$1.1816 |
Anytime |
$0.2904 |
|
Powercor |
$1.3898 |
Anytime |
$0.2619 |
|
United Energy |
$0.9863 |
Anytime |
$0. 3004 |
How does this affect me?
If you are a domestic or small business customer on a flat tariff standing offer or a domestic customer on a flat tariff with controlled load standing offer contract, you should have begun receiving the Victorian Default Offer from 1 July 2019.
From 1 January 2020 the Victorian Default Offer price determination covers all standing offers, including those based on time-of-use, demand, and flexible tariff structures. If a retailer offers their standing offer customers these tariff types they must comply with maximum annual bill amount set in our price determination. This broadens the Victorian Default Offer to provide a safeguard for all standing offer customers. For more information see our price determination.
If you are a customer on a market offer, you may request to be moved on to the Victorian Default Offer tariffs. Since 1 July 2019 electricity retailers have been required to calculate any discounts from the Victorian Default Offer tariff, known as the reference price.
Find out which offer you're on by asking your energy retailer or checking your bill.
Embedded network customers
We are currently reviewing maximum prices embedded networks and other exempt sellers may charge, and have made a draft decision.
Our draft decision proposes that from 1 September 2020 Victorian Default Offer prices will be the new maximum price for all households and most businesses in embedded networks.
We are seeking stakeholder feedback on our draft decision, and invite you to register for our public forum (online) via Eventbrite. General comments and formal submissions to our draft decision should be made by 15 June 2020 via Engage Victoria. We will make a final decision in July 2020.
Got a question?
Contact us for more information.