Submission to the Essential Services Commission on the Victorian Default Offer

Consumer Action has made a submission to the Essential Services Commission on the Victorian Default Offer electricity price that is to apply from 1 January 2021.

We consider that there is room to reduce the Victorian Default Offer (VDO) from 1 January 2021. There is significant financial stress being inflicted on the Victorian community due to COVID-19. Social restrictions are limiting peoples’ ability to work and earn an income. In turn, many peoples’ ability to pay for essential services is reduced. It is integral that this be at the forefront of the Commission’s thinking in determining the VDO.

The objective of the VDO is to provide a simple, trusted and reasonably priced electricity option that safeguards consumers unable or unwilling to engage in the electricity market. This has also been described as ‘universal access to a fair priced electricity offer’. Consumer Action considers that fairness and community expectations demand that the VDO be set at no more than absolutely necessary to ensure bills remain affordable, particularly for those who are unable to effectively engage in the market.

This submission makes 11 recommendations.

Read them in the PDF here or below:

200721 Submission - CP - Victorian Default Offer 2021

 

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