Energy retailers said final prices for the Victorian Default Offer announced by the government today are closer to actual retailer costs than those proposed in the earlier draft, but noted that the vast majority of customers still remained better off on competitive market deals.
The Australian Energy Council’s spokesman, Nick Leys said, “the VDO will only save about 5 per cent of Victorian customers money on their energy bills.
“For the vast majority of Victorians who have engaged with the market and already switched to a better deal, these reforms will not lower their bills.
“For that reason we would encourage all Victorian customers to continue to engage with the market, and to seek cheaper and more competitive market offers from their retailers rather than relying on the VDO.
“This kind of price regulation runs the risk of making more customers worse off in the longer term by driving out competition and innovation at the discount end of the market.”
About the Australian Energy Council
The Council represents 23 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.
The Australian Energy Council welcomes the release of the Energy Security Board's advice to Energy Ministers, and in particular its call for coordination and a common approach by jurisdictions but notes there is still much work to be done on the detail.
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