Energy Consumers Australia welcomes the opportunity to provide feedback on the Victorian Government’s review of the Victorian Default Offer (VDO) Order in Council. Our submission argues that the VDO remains fit for purpose and continues to play a critical dual role in Victoria’s retail electricity market: providing an automatic safety net for consumers who are unable or unwilling to engage, while also acting as a trusted reference price that improves transparency and comparability across energy offers.
Drawing on Consumer Energy Report Card data, Small Business Energy Consumer survey findings and lived experience research, we highlight that consumer disengagement remains a persistent feature of energy markets. Many households and small businesses review their energy plans infrequently, lack confidence they are on a competitive offer, and continue to experience bill stress. These realities reinforce the need for strong default price protections.
ECA supports retaining the VDO as a simple, trusted and reasonably priced benchmark. The submission also calls for consideration of stronger protections for consumers on older market contracts, continued application of reference pricing to emerging retail products, and ongoing refinement of consumer protections as electrification and the energy transition reshape the market. More broadly, we argue that increasing market complexity strengthens, rather than weakens, the case for a clear and independent benchmark that helps consumers assess value and achieve fair outcomes.
Read more in our submission (PDF, 386.03KB).
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