Victoria’s energy regulator has set new electricity pricing that will cut average household default offer bills by 5 per cent from July 1. The Essential Services Commission says the change will apply to about 512,000 households and 62,000 small businesses on the default offer.
Average residential bills will fall by about $84 a year, from $1,675 to $1,591. Small business prices will drop by 6 per cent, or $241 a year.
Essential Services Commission decision
The commission released its final default electricity prices on the day of the announcement after its March draft decision had forecast smaller reductions. Gerard Brody, the ESC chairperson and commissioner, called the cuts “welcome news” for Victorians facing cost-of-living pressures.
Brody also said, “Victoria’s default electricity prices are set independently of energy retailers, which ensures all Victorian households and small businesses have access to a fair deal.” He added, “You can find a better deal by shopping around, but the default offer provides a simple, fair option to all households and small businesses.”
Victoria households and businesses
The default offer covers around 17 per cent of households and 21 per cent of small businesses in Victoria, so most customers are on market offers instead. It also acts as a benchmark price across the wider market, making the new rates a reference point even for people who are not on the default plan.
Embedded network customers make up 182,000 of the affected accounts. That group includes people in apartments, retirement villages and caravan parks who cannot choose their own electricity supplier.
AusNet and other zones
Prices will fall across each of Victoria’s five electricity distribution zones, with AusNet customers set to receive the biggest savings of $160 next year. Citipower customers will see a $65 drop, while Powercor customers will see a $70 reduction.
Victorian Energy Minister Lily D’Ambrosio said the government had invested in renewable energy to make “life cheaper” for Victorians. The state’s default price is expected to remain lower than the benchmark used in other eastern states, after the Australian Energy Regulator released draft determinations in March for NSW, south-east Queensland and South Australia.
