Have your say on proposed changes to Victoria’s fair electricity price

Victorian energy consumers and industry stakeholders are encouraged to have their say on how the energy regulator sets a fair price for the next Victorian Default Offer which is set to commence on 1 January 2021.

The Essential Services Commission is seeking feedback on what the Victorian Default Offer might look like from 1 January 2021 in a consultation paper published today.

Pricing director Marcus Crudden says the commission is particularly interested in hearing from stakeholders about how the impact of the coronavirus pandemic might need to be taken into account when setting the price.

“The Victorian default offer is an important safety net for the community and we are beginning a process of updating it to reflect the latest assessment of efficient costs.

“As part of this process, we are interested in how the pandemic has affected consumers as well as energy retail businesses,” he said.

The paper is open for consultation on Engage Victoria for five weeks. A virtual forum will also be held in July for members of the public to contribute to discussion ahead of a draft decision being prepared.

Mr Crudden says the commission is also looking at making other changes to how the default offer is set including when the new price would commence and data collection.

“We are reviewing the length of time we set prices for and what data we collect for electricity retailers to inform our work,” he said.

The default offer is a simple, trusted and reasonably priced electricity option that is currently set every 1 January. It is designed to safeguard customers that are unwilling or unable to engage in the market.

Have your say on the Victorian Default Offer 2021 paper on Engage Victoria.