Victorian Default Offer price review 1 January 2022
We are responsible for setting, and annually reviewing, the Victorian Default Offer (VDO) 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 January 2022 to 30 June 2022.
Our final decision means Victorian Default Offer prices should decrease in 2022
We used the same approach as for our decision on the 2021 default offer
Our final decision uses generally the same approach as our 2021 Victorian Default Offer decision. This will lead to the average annual bill for default offer customers going down by about five per cent for residential customers and six per cent for small business customers.
Wholesale electricity costs are driving bill reductions
The reduction in bills is largely due to a forecast decrease in wholesale electricity costs, which will decrease by around 24 per cent for residential customers.
The regulatory period is 1 January to 30 June 2022
Our final decision is to set the regulatory period for the 1 January 2022 Victorian Default Offer to six months starting 1 January 2022 and ending 30 June 2022.
A six-month regulatory period will help us match the timing of default offer price changes with network tariff changes from 1 July 2022.
Our final decision
Victorian default offer prices to apply from 1 January 2022 to 30 June 2022
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 | $1.2600 | Block 1 (up to 1020 kWh during a quarter) Block 2 (> 1020 kWh during a quarter) |
$0.2649 $0.2811 |
$0.1834 |
| CitiPower | $1.2023 | Anytime | $0.2171 | $0.1542 |
| Jemena | $1.1491 | Anytime | $0.2307 | $0.1756 |
| Powercor | $1.3459 | Anytime | $0.2235 | $0.1578 |
| United Energy | $1.0634 | Anytime | $0.2242 | $0.1590 |
Fixed flat tariffs for general usage – small business customers with consumption less than 40 MWh per year
| Distribution zone | Supply charge ($ per day) |
Usage charge structure | Usage charge ($ per kWh) |
|---|---|---|---|
| AusNet Services | $1.3356 | Block 1 (up to 1020 kWh during a quarter) Block 2 (> 1020 kWh during a quarter) |
$0.3016 $0.3335 |
| CitiPower | $1.3876 | Anytime | $0.2141 |
| Jemena | $1.3848 | Anytime | $0.2457 |
| Powercor | $1.4613 | Anytime | $0.2257 |
| United Energy | $1.1521 | Anytime | $0.2225 |
Two period time of use tariffs - residential customers
|
Distribution zone |
Supply charge ($ per day) |
Peak usage charge ($ per kWh) 9am to 9pm weekdays |
Off peak usage charge ($ per kWh) All other times |
Usage charge: Controlled load ($ per kWh) |
|---|---|---|---|---|
|
AusNet Services |
$1.1587 |
$0.3746 |
$0.1820 |
$0.1834 |
|
CitiPower |
$1.1948 |
$0.3091 |
$0.1696 |
$0.1542 |
|
Jemena |
$1.0508 |
$0.2870 |
$0.1750 |
$0.1756 |
|
Powercor |
$1.3301 |
$0.3135 |
$0.1746 |
$0.1578 |
|
United Energy |
$1.0553 |
$0.3152 |
$0.1771 |
$0.1590 |
Two period time of use tariffs - small business customers with consumption less than 40 MWh per year
|
Distribution zone |
Supply charge ($ per day) |
Peak usage charge ($ per kWh) 9am to 9pm weekdays |
Off peak usage charge ($ per kWh) All other times |
|---|---|---|---|
|
AusNet Services |
$0.8648 |
$0.3246 |
$0.1701 |
|
CitiPower |
$1.3568 |
$0.2702 |
$0.1520 |
|
Jemena |
$1.6395 |
$0.2849 |
$0.1533 |
|
Powercor |
$1.4275 |
$0.2894 |
$0.1556 |
|
United Energy |
$1.1219 |
$0.2832 |
$0.1563 |
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.
Sector
Date
Consultation closes 8 October 2021
