Embedded network tariffs including caravan parks

Victorian Default Offer

On 30 May 2019, the Victorian Government released its final decision regarding the Victorian Default Offer (VDO). 

The Victorian Government has decided that the VDO will not apply to exempt persons selling electricity in embedded networks as the new maximum rule at this time. This means that the maximum prices that embedded networks can charge in each distribution zone will not change from the levels published in standing offers on or immediately prior to 27 May 2019. 

The Victorian Government has more information about the VDO and who it applies to on its website.

The government has asked the Essential Services Commission to develop a new maximum pricing rule for exempt persons selling electricity to customers in embedded networks by 1 July 2020.

Maximum embedded network pricing

Under the General Exemption Order (a document that outlines embedded network rules), there are rules about the maximum pricing that an embedded network operator can charge a customer. The rule is that an embedded network can charge no more than the published standing offer of the local area retailer on or immediately before 27 May 2019. There are three local area retailers in Victoria: AGL, Origin Energy and EnergyAustralia.

You can check for your local area retailer's standing offer on its website. To find out the standing offer you can:

1. look up your address using the Victorian Government's website, and 
2. use this table to find your local area retailer's standing offer:

The best place to look for the standing offer is to use the search function on the website, simply type in 'standing offer'. Alternatively, this information is often found in the 'electricity pricing/plans' area of the retailer's website. This is often where the 'pricing fact sheet' is located area that includes standing offers. Some retailers call standing offers 'basic plans' or 'simple plans'.

Caravan parks

Long-term or permanent residents (and those with permanent sites) should discuss with their caravan park or site management whether charging to the maximum level is appropriate for their circumstances. There is no requirement to charge at the maximum level in all circumstances. Caravan park residents covered by the Residential Tenancies Act 1997 have protections relating to pricing, including eligibility for tariff concessions.