Victorian Households Can Still Save On Power Bills

The Australian Energy Council (AEC), the peak body for electricity retailers, is encouraging households and businesses to explore the potential for savings by reviewing their energy plans and considering competitive market offers. 

The Essential Services Commission today released its final determination on the Victorian Default Offer (VDO), which will increase by an average of just one per cent compared to last year - equating to around $20 annually for the average household. 

The VDO is designed to act as a safety net for around 12 per cent of Victorian households who are not on market offers. However, many customers can find better value by shopping around. 

AEC Chief Executive Louisa Kinnear said, “While the increase in the VDO is modest, it’s a timely reminder for households and small businesses to check whether they’re on the best deal available. There are competitive market offers that can provide genuine savings.” 

“It’s worth contacting your retailer to confirm you're on their best deal, or using the independent Victorian Energy Compare website (www.compare.energy.vic.gov.au) to compare offers.” 

Ms Kinnear also highlighted the support available to those experiencing financial hardship: “Retailers have programs to assist customers in difficulty, so if you're struggling to pay your bill, contact your retailer as soon as possible.” 

The AEC noted that retail margins - which are already tight - have been reduced compared to last year to help keep the overall VDO cost down. While supportive of measures that lower customer bills, the AEC cautioned that this decision adds further pressure on retailers, particularly smaller ones, who continue to face a challenging operating environment. 

Retailers play a critical role in managing supply chain risks to provide stable pricing throughout the year. Retail costs cover the "cost to serve," including billing systems, call centres, and customer support services. They also include bad debt expenses.

About the Australian Energy Council

The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 as well as a 55 per cent emissions reduction target by 2035 and is committed to delivering the energy transition for the benefit of consumers.