Victorians still paying the default price for power may see their bills increase after the regulator tabled a price rise that reflects future changes to wholesale electricity prices.
A draft decision released by the Essential Services Commission (ESC) proposes an annual bill increase of $19 for residential customers and $73 for small business owners. If given the green light, it means households and businesses on the Victorian Default Offer (VDO) can expect power costs to go up from 1 July 2022.
The ESC’s pricing director Marcus Crudden explained that despite the small increase, VDO prices were still much lower than they were three or four years ago.
“It is important the Victorian Default Offer reflects costs paid by electricity retailers to the distribution businesses,” he said.
“The main reason for the proposed increase is our forecast for higher wholesale electricity costs, and, to a lesser extent, increases in environmental and retail operating costs. Wholesale electricity prices make up about a quarter of retailer costs, so it is imperative the default reflects any changes in wholesale costs.”
Mr Crudden said although the VDO was introduced in 2019 as a fairer energy deal for consumers who are less engaged in the market, there are more competitive deals available to those who shop around.
“The objective is to provide a simple, trusted and reasonably priced electricity option that safeguards consumers who are unable or unwilling to engage in the electricity market,” he said.
The ESC’s draft decision is open for comment on Engage Victoria until 12 April 2022, with a final decision expected in late May 2022.
Cheap Electricity Deals in Victoria
Victorian customers who have not switched energy providers or deals in years will likely be paying the default price for electricity. That’s why it’s important to compare energy deals regularly to ensure you’re paying a competitive price. See how these electricity plans below compare to the VDO, or get in contact with your existing provider and ask to be placed on their best offer.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. Costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The next three tabs feature products exclusively from AGL, EnergyAustralia and Origin.
Here are the AGL Energy plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the EnergyAustralia plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the Origin Energy plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower energy network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Image credit: Wan Nur Azlan Wan Mohamad/Shutterstock.com
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