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2024-25 Victorian Default Offer: Request for comment paper

Consumer Action reaffirms the importance of the policy intent underpinning the Victorian Default Offer (VDO) to provide a simple, trusted and reasonably priced electricity option that safeguards consumers who are unwilling or unable to engage in the market, alongside the broader objective of the Essential Services Commission (ESC) in promoting the long-term interests of Victorian consumers. To date, we believe the VDO has predominantly delivered in its overall objective.

In this submission, we provide specific insights and recommendations with reference to the methodology of the VDO as requested by the ESC in their paper, namely on approaches to calculating wholesale electricity costs and retail operating margin.

In addition to our comments on these matters, we also provide comment on the ongoing cost of living crisis and the health impacts of extreme weather, and the resulting critical priority for Victorian consumers to have access to affordable electricity offers. More detailed comments in relation to these points are provided in the submission below.

Alongside this submission, Consumer Action supports and co-signs the community sector joint paper submitted by the Victorian Councill of Social Services which highlights additional areas that the ESC should consider when deciding the 2024-2025 VDO.

Read the full submission (PDF).

20231214 24-25 CALC VDO Request for Comment
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