Victorian Energy Market report 2018-19

Most published energy offers continued to have discounts until 30 June 2019

Based on the energy offers published by retailers, we found that in 2018–19, most energy offers available in Victoria continued to have discounts. We reviewed the available flat and block tariff energy offers published by Victorian retailers on 30 June 2019, as shown in figure 4.26.

In 2018–19, 69 per cent of the energy market offers available to residential customers included discounts. For small business, discounts were attached to 63 per cent of generally available market offers. 

For electricity, we found that on average, 80 per cent of offers from large retailers had discounts. More than two out of three of offers had discounts that were conditional on you paying your bills on-time (a ‘pay-on-time’ discount). This was a similar breakdown of gas offers available from large retailers. However, all the gas offers from small retailers had pay-on-time discounts.

From 1 July 2019, the advertising of discounted electricity offers was to be referenced with the Victorian Default Offer. We are continuing to examine these rules to provide further clarity for energy customers 

Fewer discounted electricity market offers with smaller discount sizes

The total number of residential electricity market offers has remained relatively unchanged since 30 June 2018. Figure 4.29 shows that of the 327 flat market offers available at 30 June 2019 (in all distribution zones), 66 per cent had discounts. 

However, we found a 22 per cent reduction in conditional market offers from the previous year, with 58 per cent of all electricity market offers having conditional discounts on 30 June 2019 (figure 4.30). 

The range of headline discount associated with electricity market offers varied greatly as at 30 June 2019, with offers providing discounts varying between 1 per cent and 47 per cent – discount percentages were generally evenly distributed between this range.

The proportion of discounts between 31 and 40 per cent had also reduced in 2018–19 (figure 4.29).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_{Excludes small business market offers}

 

 

 

 

 

 

 

 

 

 

_{Conditional discount offers include those that have both conditional and unconditional components within the offer. Excludes small business market offers.}

Increasing number of gas market offers

The total number of residential gas market offers has increased by 34 per cent since 30 June 2018. Figure 4.31 shows that of the 428 market offers available at 30 June 2019 (in all distribution zones), 71 per cent had discounts. 

The total number of discounted offers available on 30 June has increased by five per cent since 30 June 2018.

Conditional discount offers made up 55 per cent of all gas market offers on 30 June 2019 (figure 4.31), representing a 20 per cent reduction in conditional market offers from the previous year.  This reduction was mostly offset by an increase in offers with no discount, which nearly doubled between 30 June 2018 and 2019.