Energy savings: VDO to be extended to all VIC customers
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*
|Retailer||Local area retailers standing offer tariffs||Victorian Default Offer 2020||Savings per year|
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!