Energy savings: VDO to be extended to all VIC customers

By Ceyda Erem ·

In July last year, the Victorian energy market went under intensive reform to improve prices and transparency for residents and was called the Victorian Default Offer (VDO).

The VDO imposed a price cap on standing offers, which meant that retailers could no longer charge exorbitant prices for these energy plans. All previous customers on standing offer plans were then rolled onto the VDO. 

This week the Essential Service Commision (ESC) announced that from 1 September 2020, it will be extending the VDO to energy customers living in embedded networks, like caravans, retirement villages and even small businesses

According to the ESC, more than 104,000 customers will benefit from this reform. 

“Embedded network customers have not been fully covered by the same price protections as other Victorians. This ensures they now have access to a fair deal with significant savings for some,” said ESC pricing director, Marcus Crudden. 

Crudden said customers within embedded networks are expected to save between $180 to $360 annually, while small businesses could see savings of between $900 to $2,220.

VDO Annual Savings for embedded network customers*

RetailerLocal area retailers standing offer tariffsVictorian Default Offer 2020Savings per year
United Energy$1,687$1,508$179

Source: Essential Service Commision 
*Comparison between local area retailers standing offer tariffs (27 May 2019) and the Victorian Default Offer 2020 (based on annual consumption of 4,000 kWH - GST inclusive, all figures rounded to the nearest dollar)

If you’re a Victorian looking to see big savings on your energy bill, there are other options besides switching to the VDO. 

Our free comparison tool can help you compare energy prices in your area and take the hassle out of making the switch!


Compare energy

Find energy plans available in your area in just seconds.

Ceyda Erem
Money writer

Ceyda Erem is Mozo’s authority on Energy, as well as having broader expertise as a personal finance writer. She loves to put her researching and writing talents into stories that help our readers to make more informed financial choices, whether that’s about finding the best energy deal or writing about the latest sneaky bank tricks. Ceyda has a Bachelor of Arts (major in writing) from Macquarie University.