The Essential Services Commission sought your views about our proposed approach for setting the Victorian Default Offer prices that would apply from 1 January 2022. We released our draft decision paper on 7 September 2021 invited submissions until 8 October 2021.
We released our final decision on 25 November 2021. Submissions to this review are closed.
Our role in setting the Victorian default offer
The Essential Services Commission is responsible for setting, and annually reviewing, the Victorian default offer prices. The default offers are designed to be simple, trusted and reasonably priced electricity options that safeguard customers that are unable or unwilling to engage in the market.
Victorian Default Offer 2022–23 review
The next Victorian Default Offer regulatory period will begin on 1 July 2022. This means that we will need to complete our review by 24 May 2022. We have already started thinking about how we will conduct this review. Please visit our website for more information about this review and how you might participate.
Key facts about our final decision
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.
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.
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.
Read our final decision
The Essential Services Commission is responsible for setting the Victorian Default Offer prices, which are designed to be a simple, trusted and reasonably priced electricity option that safeguards customers that are unwilling or unable to engage in the market. Each year we are required by the Victorian Government to review the Victorian Default Offer prices we have set to make sure they are based on efficient costs and continue to provide a safeguard to consumers.
The Essential Services Commission is an independent regulator that promotes the long term interests of Victorian consumers with respect to the price, quality and reliability of essential services. We regulate Victoria’s energy, water and transport sectors, and administer the local government Fair Go Rates system.