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
An independent report has predicted power bills will continue to fall as new generation capacity enters the National Electricity Market.
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