We have set the Victorian Default Offer prices to apply from 1 July 2024 to 30 June 2025. Average annual bills based on default offer prices will go down by 6 per cent for residential customers and go down by 7 per cent for small business customers.
Victorian Default Offer price review 2024–25
- Request for comment paper2 November 2023
- Submissions close14 December 2023
- Draft decision19 March 2024
- Public forum28 March 2024
- Submissions close19 April 2024
- Final decision20 May 2024
- New prices in effect1 July 2024
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 who are unwilling or unable to engage in the market.
We have set the Victorian Default Offer prices to apply from 1 July 2024 to 30 June 2025.
How cost benchmarks and annual bills will change under our final decision
Key facts from our final decision
Our method to calculate the default offer is generally the same
Our final decision uses generally the same approach as our Victorian Default Offer 2023-24 decision. We continue to base the wholesale electricity costs on the prices of electricity costs in the futures market. We also continue to use network tariffs approved by the Australian Energy Regulator in setting the network cost benchmark.
Wholesale cost benchmark has lowered, based on futures contract prices
The decrease in the default offer prices is mainly due to decreases in estimated wholesale electricity costs. This is partly offset by the increases in the network costs.
Support is available
The commission actively employs regulatory tools to ensure energy retailers comply with essential safeguards for Victorian consumers. We closely monitor retailers’ communication of their best offers to energy consumers and emphasise their duty to assist customers facing bill stress. According to the Energy Retail Code of Practice, customers are entitled to payment assistance if they miss an energy bill.
Victorian Default Offer 2024–25: Final Decision
Victorian default offer prices to apply from 1 July 2024 to 30 June 2025
Fixed flat tariffs for general usage and general usage+controlled load usage – residential customers (including GST)
| Distribution zone | Supply charge ($ per day) | Usage charge structure | Usage charge (not controlled load) ($ per kWh) | Usage charge: controlled load ($ per kWh) |
|---|---|---|---|---|
| AusNet Services | $1.3354 | Block 1 (up to 1020 kWh during a quarter) Block 2 (> 1020 kWh during a quarter) | $0.3536 $0.3617 | $0.2512 |
| CitiPower | $1.1673 | Anytime | $0.2575 | $0.1901 |
| Jemena | $1.2105 | Anytime | $0.3054 | $0.2362 |
| Powercor | $1.3163 | Anytime | $0.3045 | $0.2226 |
| United Energy | $1.0955 | Anytime | $0.2884 | $0.2105 |
Fixed flat tariffs for general usage – small business customers with consumption less than 40 MWh per year (including GST)
| Distribution zone | Supply charge ($ per day) | Usage charge structure | Usage charge ($ per kWh) |
|---|---|---|---|
| AusNet Services | $1.3354 | Block 1 (up to 1020 kWh during a quarter) Block 2 (> 1020 kWh during a quarter) | $0.3837 $0.3945 |
| CitiPower | $1.3583 | Anytime | $0.2529 |
| Jemena | $1.4055 | Anytime | $0.3182 |
| Powercor | $1.4594 | Anytime | $0.2797 |
| United Energy | $1.2865 | Anytime | $0.2742 |
Two period time of use tariffs – residential customers (including GST)
| Distribution zone | Supply charge ($ per day) | Peak usage charge ($ per kWh) 3 pm to 9 pm everyday | Off peak usage charge ($ per kWh) All other times | Usage charge: Controlled load ($ per kWh) |
|---|---|---|---|---|
| AusNet Services | $1.3354 | $0.4716 | $0.2512 | $0.2512 |
| CitiPower | $1.1673 | $0.3446 | $0.2087 | $0.1901 |
| Jemena | $1.2105 | $0.3870 | $0.2420 | $0.2362 |
| Powercor | $1.3163 | $0.4052 | $0.2457 | $0.2226 |
| United Energy | $1.0955 | $0.3830 | $0.2313 | $0.2105 |
Two period time of use tariffs – small business customers with consumption less than 40 MWh per year (including GST)
| Distribution zone | Supply charge ($ per day) | Peak usage charge ($ per kWh) 9 am to 9 pm weekdays | Off peak usage charge ($ per kWh) All other times |
|---|---|---|---|
| AusNet Services | $1.3354 | $0.3953 | $0.2153 |
| CitiPower | $1.3583 | $0.3145 | $0.1857 |
| Jemena | $1.7271 | $0.3650 | $0.2009 |
| Powercor | $1.4594 | $0.3739 | $0.2047 |
| United Energy | $1.2865 | $0.3453 | $0.1969 |
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.
How we calculate the Victorian Default Offer
We are required to base the Victorian Default Offer on the efficient costs of the sale of electricity by a retailer. In doing so, we take into account:
- wholesale electricity costs – based on the price of electricity costs in the futures market
- network costs – taken directly from tariffs approved by the Australian Energy Regulator
- environmental costs – taken from public information on the costs of environmental initiatives
- retail costs – based on the customer weighted average of retailers' actual costs
- other costs – taken directly from published reports from industry bodies
- network losses – taken from the Australian Energy Market Operator and electricity distributors
- retail operating margin – based on a benchmark from comparable regulatory decisions.
Next steps
Victorian Default Offer 2024–25 prices will come into effect from 1 July 2024.
Resources
Public forum on draft decision