Victorian Default Offer welcomed but more ways needed to reduce high energy costs
Consumer Action Law Centre has welcomed today’s decision from the Essential Services Commission’s (ESC) on the Victorian Default Offer (VDO) for 2025-26 and has reiterated its call on the State Government, the Commission and energy retailers to do more to help Victorians who are struggling with growing energy costs and burgeoning debt.
“While we appreciate the regulator looking for ways to minimise increases in the VDO, the small increase announced this morning will be difficult news for consumers already struggling with their energy bills. Today’s decision makes clear the need for all stakeholders involved in the energy market to look at a package of targeted assistance measures,” said Stephanie Tonkin, Consumer Action CEO.
“The Victorian Government has just announced bill relief, while the ESC is undertaking a raft of very welcome energy reform measures. As we head into the winter billing period, we’d particularly like to see retailers now do their bit and look at ways to help customers experiencing insurmountable debt.
“High energy prices continue to have significant impacts on Victorians -especially those experiencing energy hardship- many of whom contact the National Debt Helpline for assistance.
“Demand for our services continues to grow and having the VDO provide an affordable offer for people who can’t engage in the market is paramount during this cost-of-living crisis,” she said.
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 many in financial difficulty, nor does it address the underlying energy poverty experienced by thousands of Victorian consumers.
“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 of a social electricity tariff that would help low-income consumers access the essential energy they need,” Ms Tonkin said.
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.”
VIDEO: Why a social tariff?
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Media contact: Mark Pearce, Media and Communications Adviser, 0413 299 567, media@consumeraction.org.au
