Victorian Default Offer price review 2021

Variation to the current Victorian Default Offer price determination

We are consulting on our proposed approach to vary the current Victorian Default Offer price determination to account for changes to networks costs applying from 1 July 2021.

In our current price determination we:

• used tariffs approved by the Australian Energy Regulator for the period 1 January to 30 June 2021. The approved network tariffs for the second half of the year were not available at that time.
• also nominated the Australian Energy Regulator's final decision on network tariffs as one of the circumstances under which we might vary default offer prices. Under the current default offer methodology, network costs are treated as a 'pass through'. This is because retailers have no control over the network costs they pay and the network charges are determined by a price regulator.

The Australian Energy Regulator recently made its final decision on the Victorian distribution network businesses' revenue determination for the 2021–26 regulatory period. Following this, it will approve the network tariffs for 2021–22 in mid-June 2021.    

Consultation paper

We are seeking feedback on how the current VDO price determination should take into account changes to network tariffs applying from 1 July 2021. 

This is outlined in a consultation paper, which also covers our approach to the Victorian Default Offer price determination to apply from 1 January 2022. Visit the Victorian Default Offer price review 2022 page for more information.

These matters are covered in the same paper, as our approach to reflecting changes to network tariffs may impact on the process and issues for our next determination.  

Have your say

We invite you make submissions in response to our proposed approach to vary the current price determination to account for changes to network tariffs applying from 1 July 2021.

Both general comments and formal submission to our consultation paper should be made by 5pm 25 May 2021.

Visit our Engage Victoria page to make a submission. 

For information on the consultation process for the 2022 VDO price review, visit the Victorian Default Offer price review 2022 page. 

Public forum

To give another opportunity to engage with you, we are holding a public forum on 20 May 2021.

The purpose of the public forum is for us to hear your views and questions about our proposed next steps for the Victorian Default Offer. It is also an opportunity for you to listen to key industry stakeholders' views on our proposal.

Read our media release on the final decision

Prices from 1 January 2021 

The below prices apply for the Victorian Default Offer from 1 January 2021.

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.

Default offer for residential customers (GST inclusive)

Default offer for small business customers with consumption less than 40 MWh per year (GST inclusive)

The Victorian Default Offer price determination covers all 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 Victorian Default Offer is contained in the final decision paper.

Submissions to our draft decision

Draft decision public forum 

You can watch the public forum, view presentation slides or review answers to questions asked by attendees.

Submissions to our consultation paper

Consultation paper public forum

You can watch the public forum, view presentation slides or review answers to questions asked by attendees.