by AEC
VDO decision highlights benefit of competitive electricity deals
The Victorian Default Offer (VDO) set by the Essential Services Commission and commencing on 1 January 2020 is a reasonable reflection of actual cost pressures on electricity retailers. But it again reinforces that competitive market deals are the best option for households, the Australian Energy Council said today.
The Essential Services Commission has flagged that its decision released today reflects upward pressure on wholesale prices and increased network costs.
The Australian Energy Council’s Chief Executive, Sarah McNamara, the VDO only applies to around 5 per cent of Victorian customers.
“It’s important to remember that most Victorians are on competitive deals rather than the regulated offer, so today’s decision will not impact their bills.
“Our message is to stay on or switch to a market deal with your retailer rather than rely on the regulator setting the VDO because it will save you money.”
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.
Media contact Carl Kitchen 0401 691 342
Related News
ACCC Report Highlights Benefits of Retail Competition
The Australian Energy Council (AEC) welcomes the ACCC's latest report, which confirms that competition in the retail energy market is delivering benefits for customers.
Implications for Competitive Market in Pricing Review
Limiting the ability of electricity retailers to offer incentives to new customers to sign up to better deals will have major implications for the competitive market, according to the peak body for retailers, the Australian Energy Council.
Peak Industry Body Appoints New Chair and Deputy Chair
The Australian Energy Council's Board has appointed Origin Energy's Chief Executive Officer, Frank Calabria, as its new Chair.
Send an email with your question or comment, and include your name and a short message and we'll get back to you shortly.