Energy price drop heralded by lower Victorian Default Offer is good news says Consumer Action
Consumer Action Law Centre CEO Stephanie Tonkin has welcomed the Essential Services Commission (ESC) announcement of a reduction in the Victorian Default Offer (VDO), the base energy price for eligible consumers.
“As the cost-of-living crisis continues, and energy prices rise, this is good news especially for the many Victorian families that are doing it tough,” Ms Tonkin said.
Energy debt is one of the top presenting issues from people who call the National Debt Helpline and last October the average level of energy debt from Victorian callers was $4264, that amount is $1000 more than the previous October- and the highest ever recorded.
“People are really concerned about paying their energy bills and calls to the National Debt Helpline are surging, so this news is good for all Victorians in these uncertain economic times.”
Ms Tonkin said the VDO may not represent the cheapest offer because it’s designed to be a ‘fair’ offer.
“Consumers might be entitled to an even cheaper offer or assistance with their bills and debt if they asked their retailer about their options – this should be incumbent on retailers to provide proactively, but it is an option for those consumers who can, to make these enquiries.
“The National Debt Helpline is also available to all Victorians for free and independent financial counselling support – 1800 007 007.”
The Essential Services Commission’s draft decision on the 2026-27 Victorian Default Offer proposes a reduction in each of the state’s five electricity distribution zones. On average, domestic customers would save $46 a year (three per cent) and small business customers would save $172 (five per cent).
ENDS
Media contact: Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
