The Essential Services Commission’s Annual Report 2024-25 reflects on another impactful year for the commission, delivering work that will have a tangible positive impact for the Victorian community.
For most households, our pricing decisions are the most visible element of our work – the Victorian Default Offer, maximum water prices, and for the last time in 2024-25, minimum feed-in tariffs. These decisions are the culmination of significant consultation, analysis and consideration.
Focus on fair
We continue to drive efforts to remove barriers faced by vulnerable consumers. In May, we launched a discussion paper that helps the energy and water sectors identify risks and prevent harm for customers experiencing family violence. The paper was the outcome of our partnership with leaders in family violence and economic abuse prevention. Consumers experiencing vulnerability were also central to the changes to the Energy Retail Code of Practice we proposed and consulted on during 2024–25. The Regulatory Impact Statement outlining our proposal considered how we can ensure households struggling with energy debt are on the most affordable plan and stay connected to power.
Enforcement
The commission achieved several notable enforcement outcomes in the past year. The penalties we issued will drive compliance and give Victorians confidence that we’re actively promoting the integrity and fairness of the markets we regulate. Notably, the Supreme Court of Victoria handed down the largest financial penalty for breaches of Victoria’s energy rules in the state’s history, when it penalised Origin Energy $17.6 million for breaches affecting 668,750 customers. The court also penalised Sumo Power and Sumo Gas a total of $10 million for unlawful doorknocking and best offer messaging failures. In the Victorian Energy Upgrades (VEU) program, our investigations led to warnings, suspensions, disqualifications and penalties. This included the first ever penalty for breaching the ban on door-to-door marketing.
VEU complaints data shows a 38 per cent decrease in complaints compared to 2023–24, suggesting the ban on telemarketing and doorknocking has had an immediate positive effect for households.
For today and tomorrow
We began work on a new strategic plan that will guide our work program through to 2029. Discussions with government, industry, community advocates and leading regulatory thinkers helped us identify how best we promote the long-term interests of Victorian consumers with respect to the price, quality and reliability of essential services. We aim to have long-term impact in the following areas:
