Energy regulator puts Victorian Default Offer on the table
08 March 2019
The state’s energy regulator says a proposed ‘fairer price for electricity’ known as the Victorian Default Offer could save households hundreds of dollars a year, while small businesses could save thousands.
The Essential Services Commission has released a proposal which would mean the typical Victorian household (using 4,000kWh per year) on a standing offer would save between $390 and $520 a year (depending on where they live), while the savings for a small business using 20,000 kWh per year would be between $1830 and $2300 a year.*
Commission chair Ron Ben-David says that subject to the passage of legislation currently in Parliament, every Victorian household and small business will be able to access the Victorian Default Offer from 1 July by simply requesting it from their electricity retailer.
“Customers who haven’t shopped around for a while, or who have struggled to meet discount conditions, will find the Victorian Default Offer could save them hundreds of dollars.
“While customers on market offers will need to request the default offer, customers on standard contracts (also known as standing offers) will be automatically transferred from 1 July,” he said.
The Victorian default offer will automatically apply to around 145,000 residential customers, and 45,000 (or 15 per cent) of small business customers.
“Around 6 per cent of Victorian households have been stuck on standard contracts which have risen in price by over 20 per cent in just the last two years,” said Dr Ben-David.**
Under the proposed legislation, the Essential Services Commission will review the price of the Victorian Default Offer each year and retailers will be obliged to comply with its price rulings.