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Submission to the Essential Services Commission on the Victorian Default Offer


Energy Consumers Australia

Energy Consumers Australia has partnered with consumer advocates and Victorian community sector organisations to provide feedback to the Victorian Default Offer 2024-25 Request for Comment Paper.

The joint submission communicates the belief that the Victorian Default Offer (VDO) has provided an important safeguard for consumers that are unable or unwilling to engage with the electricity retail market, a key benchmark price for market offers, and since September 2020, a crucial maximum price for embedded network customers. It also urges the Essential Services Commission to consider this pricing determination in the context of broader cost-of-living pressures.

The submission advocates that, as volatile wholesale prices settle, the VDO will be an important mechanism for passing on cheaper prices to customers. It also questions the inclusion of Customer Acquisition and Retention Costs and whether the retail margin could be reduced in line with other jurisdictions. In addition to our joint submission, Energy Consumers Australia has also provided separate commentary to the Essential Services Commission highlighting how we believe there are broader issues which may hamper the effectiveness of the Victorian Default Offer going forward.

Read the joint submission here and ECA’s supporting letter here.

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