Victorian Default Offer could do more in cost-of-living crisis and beyond
Consumer Action Law Centre has welcomed today’s draft decision from the Essential Services Commission (ESC) on the Victorian Default Offer for 2025-26 but calls on the Commission and Energy Retailers to do more to help Victorians who are struggling with growing energy debt.
“While we remain supportive of the purpose of the VDO, we note that high energy prices across the market continue to have significant impacts on Victorians experiencing energy hardship who are contacting the National Debt Helpline for assistance,” said Stephanie Tonkin, Consumer Action CEO
“Demand for our services continues to grow. Having the VDO provide an affordable offer for people who can’t engage in the market is paramount during this cost-of-living crisis and we urge the ESC to continue to look for ways to ensure the 2025-6 VDO is as low as possible by the time that the final decision is released in May.
“While the VDO remains an important safeguard for consumers unable or unwilling to engage in the retail energy market, it isn’t producing large cost savings for the many people we support in financial difficulty or addressing underlying energy poverty for thousands of Victorian consumers.
Consumer Action therefore welcomes the ESC’s inclusion in today’s Draft Decision paper for the Victorian Government to consider the development of a social tariff for low-income households.
“The structural hardship we observe on our frontlines means that many people on low incomes are simply unable to afford the cost of energy. We urge the Victorian Government to explore options for the introduction for a social electricity tariff that would help low-income consumers access the essential energy they need.”
“For people struggling with energy bills, ask your retailer for assistance, or call a financial counsellor for free, non-judgemental advice on 1800 007 007.”
ENDS
Media contact: Mark Pearce, Media and Communications Adviser, 0413 299 567, media@consumeraction.org.au
