We are reviewing the Victorian Default Offer prices to apply from 1 January 2022 for customers on electricity standing offers.
Victorian Default Offer price review 2022
Consultation paper14 May 2021
Draft decision7 September 2021
Online public forum23 September 2021
Submissions close8 October 2021
Final decision25 November 2021
We are responsible for setting, and annually reviewing, the Victorian Default Offer (VDO) prices. The default offer is designed to be a simple, trusted and reasonably priced electricity option that safeguards customers that are unwilling or unable to engage in the market.
We are consulting on our draft decision on the Victorian Default Offer applying from 1 January 2022. Our draft decision follows the release of our consultation paper in May 2021. We took into account stakeholders' submissions to our consultation paper in making this draft decision.
Our draft decision means Victorian Default Offer prices should decrease in 2022
We used the same approach as for our decision on the 2021 default offer
Our draft decision uses generally the same approach as our 2021 Victorian Default Offer decision. This would lead to the average annual bill for default offer customers going down by about 5 per cent for residential customers and 7 per cent for small business customers.
Wholesale electricity costs are driving bill reductions
The reduction in bills is largely due to a forecast decrease in wholesale electricity costs, which will decrease by around 25 per cent for residential customers.
The proposed regulatory period is 1 January to 30 June 2022
Our draft decision is to set the regulatory period for the 1 January 2022 Victorian Default Offer to six months from 1 January 2022 to 30 June 2022.
A six-month regulatory period will help us match the timing of default offer price changes with network tariff changes from 1 July 2022. It will also give us more flexibility to respond to changes in costs in 2022, for example changes in network tariffs from 1 July 2022.
Our draft decision
Public forum – 23 September 2021
Our public forum on 23 September provides an opportunity for stakeholders to express their views and raise questions about our Victorian Default Offer applying from 1 January 2022 draft decision.
You can also read the media release on our draft decision.
We are seeking your views
We invite you to give us feedback on this draft decision paper.
General comments and formal submissions can be made via Engage Victoria by 5 pm on 8 October 2021. If this present an issue, please email us at VDO@esc.vic.gov.au to discuss other options for making a submission.