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This submission represents the shared view of leading Victorian community sector organisations and energy consumer advocates. Our submission identifies where there remains work to be done, and Victorian Default Offer (VDO) cost-stack components where key assumptions and choices should be reconsidered. 

We believe that the VDO has provided an important safeguard for consumers that are unable or unwilling to engage with the electricity retail market, a key benchmark price for market offers, and since September 2020, a crucial maximum price for embedded network customers. Taken together, VDO customers and those on embedded
networks number over 400,000 households, businesses, and individuals.
We strongly support the VDO playing these roles and believe it should continue to do so, while being kept at the lowest reasonable price.

The VDO has also been successful in eliminating excessively priced standing offers from the market. As a reference price, the VDO has made it easier for consumers to compare alternative market offers and deterred misleading discounting practices.

Alongside the VDO, Victorians continue to have access to a robust retailer market, with competitive market offers and new retailers regularly entering the market. As such, historic concerns by retailers that the VDO would stifle market participation or product innovation have proven wholly unfounded.

However, given that the Essential Services Commission (ESC) has proposed to use generally the same methodologies as in past reviews for the 2024-2025 period, our submission identifies where there remains work to be done, and VDO cost-stack components where key
assumptions and choices should be reconsidered.

Read the full submission (PDF).