We have set the Victorian Default Offer prices to apply from 1 July 2022 to 30 June 2023. Average annual bills for default offer customers will go up by about five per cent for both residential and small business customers.
Victorian Default Offer price review 2022–23
- Initial consultationNovember 2021
- Submissions close3 February 2022
- Draft decision15 March 2022
- Online public forumlate March 2022
- Submissions close12 April 2022
- Final decision24 May 2022
- New prices in effect1 July 2022
Overview
We are responsible for setting and annually reviewing the Victorian Default Offer prices. The default offer is designed to be a simple, trusted and reasonably priced electricity option that safeguards customers that are unwilling or unable to engage in the market.
We have set the Victorian Default Offer prices to apply from 1 July 2022 to 30 June 2023.
Our final decision means Victorian Default Offer prices will increase in 2022–23
Our method to calculate the default offer is generally the same
Our final decision uses generally the same approach as our 1 January 2022 Victoria Default Offer decision. This will lead to the average annual bill for both residential and small business default offer customers increasing by about five per cent.
Wholesale electricity costs are driving bill increases
The increase in bills is largely due to a forecast increase in wholesale electricity costs, which are largely being driven by higher market prices for electricity. Wholesale costs account for nearly two thirds of the increase in the default offer for residential customers.
The regulatory period is 1 July 2022 to 30 June 2023
Our final decision is to set the regulatory period for the Victorian Default Offer to twelve months, starting 1 July 2022 and ending 30 June 2023.
We intend to make a determination on prices to apply from 1 July 2023 in May 2023, and will consult with stakeholders before we finalise prices.
Our final decision
Victorian default offer prices to apply from 1 July 2022 to 30 June 2023
Fixed flat tariffs for general usage and general usage + controlled load usage – residential customers
| Distribution zone | Supply charge ($ per day) | Usage charge structure | Usage charge (not controlled load) ($ per kWh) | Usage charge: controlled load ($ per kWh) |
|---|---|---|---|---|
| AusNet Services | $1.2994 | Block 1 (up to 1020 kWh during a quarter) Block 2 (> 1020 kWh during a quarter) | $0.2893 $0.3070 | $0.1962 |
| CitiPower | $1.1623 | Anytime | $0.2170 | $0.1566 |
| Jemena | $1.1577 | Anytime | $0.2322 | $0.1761 |
| Powercor | $1.3102 | Anytime | $0.2333 | $0.1656 |
| United Energy | $1.0753 | Anytime | $0.2327 | $0.1631 |
Fixed flat tariffs for general usage – small business customers with consumption less than 40 MWh per year
| Distribution zone | Supply charge ($ per day) | Usage charge structure | Usage charge ($ per kWh) |
|---|---|---|---|
| AusNet Services | $1.2994 | Block 1 (up to 1020 kWh during a quarter) Block 2 (> 1020 kWh during a quarter) | $0.3308 $0.3663 |
| CitiPower | $1.3860 | Anytime | $0.2166 |
| Jemena | $1.3087 | Anytime | $0.2468 |
| Powercor | $1.4380 | Anytime | $0.2333 |
| United Energy | $1.2191 | Anytime | $0.2279 |
Two period time of use tariffs – residential customers
| Distribution zone | Supply charge ($ per day) | Peak usage charge ($ per kWh) 3 pm to 9 pm weekdays | Off peak usage charge ($ per kWh) All other times | Usage charge: Controlled load ($ per kWh) |
|---|---|---|---|---|
| AusNet Services | $1.2994 | $0.4081 | $0.1965 | $0.1962 |
| CitiPower | $1.1623 | $0.3021 | $0.1735 | $0.1566 |
| Jemena | $1.1577 | $0.2967 | $0.1823 | $0.1761 |
| Powercor | $1.3102 | $0.3268 | $0.1855 | $0.1656 |
| United Energy | $1.0753 | $0.3251 | $0.1831 | $0.1631 |
Two period time of use tariffs – small business customers with consumption less than 40 MWh per year
| Distribution zone | Supply charge ($ per day) | Peak usage charge ($ per kWh) 9 am to 9 pm weekdays | Off peak usage charge ($ per kWh) All other times |
|---|---|---|---|
| AusNet Services | $1.2994 | $0.3521 | $0.1817 |
| CitiPower | $1.3860 | $0.2785 | $0.1575 |
| Jemena | $1.6514 | $0.2848 | $0.1548 |
| Powercor | $1.4380 | $0.3138 | $0.1668 |
| United Energy | $1.2191 | $0.2960 | $0.1601 |
Our price determination covers all types of standing offers, including those based on time-of-use, demand, and flexible tariff structures.
If you're not sure which distribution zone you're in, you can look it up on your electricity bill or view more information on the Victorian Government's energy website.
Resources
Submissions to our draft decision
Public forum - 31 March 2022
Our public forum on 31 March 2022 provided an opportunity for interested stakeholders to express their views and raise questions about our proposed next steps for the Victorian Default Offer.