Streamlining compliance and enforcement

We have released our final decision on the revised energy compliance and enforcement policy. Having been introduced in 2016, we considered it timely to review the policy and determine whether it was effectively and efficiently delivering outcomes for consumers.

The revised policy moves away from prescribing, in detail, our compliance and enforcement pathway. Instead, it sets out our broad approach to compliance and enforcement, including identifying the tools we will use to promote self-compliance with our energy regulatory framework. We consider this approach will support flexibility in promoting industry compliance as well as foster timely outcomes.

New rules to ensure contract periods, practices and variations are clear and fair

In response to recommendation 4 from the independent bipartisan review of electricity and gas retail markets we implemented a suite of reforms to ensure that contract periods, practices (including discounting) and variations are clear and fair.

The final decision for these reforms was released in February 2020, following an issues paper in June 2019 and a draft decision in December 2019.

These reforms took effect from 1 July 2020.

Price certainty

Retailers are only allowed to increase prices once a year.

For many customers, this will happen on a set date one month after network tariff prices change. Customers on fixed-price contracts will only experience any price increases on the anniversary of their initial fixed-price period expiring.

Retailers must clearly communicate the time at which prices may change with their customers.

Clearer and simpler contract and discounting practices

Any customer signing up to a new offer with a discount, credit or rebate will receive that benefit for the entire duration of their contract.

Retailers must advertise electricity offers with reference to the Victorian Default Offer, to help customers compare like with like.

Safeguard protections

Pay-on-time discounts are capped at a level set by the commission, so customers who miss a bill payment will not face a large increase in costs.

Retailers must honour pay-on-time discounts for customers receiving tailored assistance who miss a bill payment.

Retailers must roll customers on fixed-term electricity contracts who do not choose another offer at the end of the contract onto the Victorian Default Offer.

Information about the Victorian Default Offer on bills

Retailers must include specified information about the Victorian Default Offer on the front page of every electricity bill. This tells customers about the offer and how to access it.

The Victorian Default Offer allows every Victorian household and small business to ask for a default offer from their electricity retailer from 1 July 2019. We were responsible for recommending to the Victorian Government what the offer (price) should be.

The Victorian Government has released our final advice on the Victorian Default Offer to apply from 1 July 2019, in response to the terms of reference issued in December 2018.

What is the Victorian Default Offer?

Under legislation passed in the Parliament of Victoria and rules set by Governor in Council Orders, every Victorian household and small business (with the exception of embedded network customers) will be able to ask for a default offer from their electricity retailer from 1 July 2019.

From 1 July to 31 December 2019, the price of electricity under the Victorian Default Offer is based on our advice, and is not set by energy companies. Most customers on a standard contract (or standing offer) will receive the Victorian Default Offer on 1 July. Electricity retailers may continue to offer customers contracts that differ from the Victorian Default Offer, through market offers.

What does our final advice mean for electricity bills?

The first Victorian Default Offer price will be set for the period from 1 July 2019 to 31 December 2019.

Got a question?

Contact us for more information.

We are reviewing our requirements for electricity distribution

We are reviewing the Electricity Distribution Code. The code sets out requirements for electricity distribution in Victoria and covers:

• protections for customers, such as when customers can be compensated for low reliability
• technical standards that govern the way electricity is supplied
• communication requirements, such as when distribution businesses are to contact customers before a planned outage
• certain process requirements, like new customer or generator connections.

The distribution of electricity is experiencing transformation and innovation. We seek to promote the long-term interests of Victorian customers in the way we regulate the distribution of electricity, and aim to ensure the energy rules remain fit for purpose.

Keep updated

The code has many different areas to consider. We are engaging with many different stakeholders as we consider the priority matters for review.

To receive direct updates and notifications, email edc.review@esc.vic.gov.au.

Electricity Distribution Code Review Forum

In 2018, we held a public forum to introduce the Electricity Distribution Code review. We asked stakeholders to raise their areas of interest for review.

We have completed our annual review of the minimum feed-in tariffs that your energy company pays you for power you export to the grid via sources including solar panels. 

From 1 July 2019, retailers will continue to be able to offer solar system owners either a single rate, a time-varying rate or both rates.

Our final decision continues the approach we established for the 2018-19 feed-in tariff, giving retailers the flexibility to offer one or both forms of the tariff (either single rate or time-varying). This helps continue the transition occurring in the market, while allowing retailers to offer other feed-in tariffs in response to customer demand.

The single rate minimum feed-in tariff is 12 cents per kilowatt hour and applies at all times of the day and week.

The table below shows how the time-varying rate changes at different times of the day and week.

How does the minimum feed-in tariff affect me?

Your energy bills give you information on the feed-in tariff your retailer is paying you. Every plan is different, so you should always check to make sure your energy retailer offers you one that best suits your circumstances.