We’re making energy cost courteous for Victorian households and businesses.
From 1 July 2019, if you are on a simple standing offer for your electricity, you will be rolled over to a better, fairer plan. It’s termed as the Victorian Default Offer or the VDO.
It could save you hundreds of dollars.
How much can you save?
A typical household could save up to $450 per year when compared with the median standing offer in your area. A typical small business could save up to $2,050 each year.
Why are we introducing the Victorian Default Offer?
The Victorian Default Offer is presented after a fair evaluation into energy prices noticed that Victorians were spending higher than they should for electricity.
The VDO is part of the government’s Energy Fairness Plan to make the electricity market simpler and more affordable for all consumers.
How do you know if you’re on a simple standing offer?
From 1 July, your energy provider must automatically move customers on existing simple standing offers to the VDO. If you think you haven’t been moved, you can call your energy provider or check your next electricity bill.
If you don’t know which deal you’re on, your provider may have automatically put you on a costly flat tariff standing offer for electricity. These standing offers are set by the energy provider and are usually much higher than the energy provider’s initial cheaper deal.
I’m not on a simple standing offer. How can I save?
If you’re not on a simple standing offer, you can still opt-in by calling your energy provider after 1 July 2019 and asking to be put on the Victorian Default Offer.
The VDO is a decent offer but not significantly the most affordable offer open to you. If you opt in to the Victorian Default Offer, you will be able to leave at any time and access other offers in the market.
From 1 July, your energy provider must tell you on your bill, at least once every 3 months for electricity bills and once every four months for gas bills, whether you are on their best offer. This means you can compare which offer is best and fairest for you.
You can also ask your energy retailer for the qualified deal.
If you’re not sure, visit Econnex. It provides free, independent advice by comparing what is the best available offer for you – no tricks, no gimmicks.
Do I qualify for the VDO?
The VDO is accessible to all Victorian families and small enterprise buyers from 1 July 2019. However, if you live in an apartment block, retirement home, caravan park, or you’re a small business tenant in a shopping center, you might receive your electricity through an embedded network.
Embedded networks can’t obtain the Victorian Default Offer at this stage. The Essential Services Commission will review the price cap for customers in embedded networks as soon as possible.
You can check whether power at your location is provided by an embedded network at the Essential services commission register.
The government has committed to banning embedded networks in new-build residential apartment blocks, which too often lock in high costs for consumers.
Exemptions will be allowed for buildings that use renewable energy microgrids to deliver low-cost renewable energy to apartment blocks.
Is my prevailing deal better than the Victorian Default Offer?
The Victorian Default Offer is a fair price for energy – but not necessarily the best price.
If you are a Victorian household or small business customer, you can compare the tariffs on your electricity bill to those in the tables here to help you decide whether the Victorian Default Offer may provide good savings than your current deal.