“This is one of the biggest reforms to the energy sector in over a decade – and it’s not just available to people currently on standing offers; anyone can ask for the Victorian default offer,” said Energy Minister, Lily D’Ambrosio.
"We went to the last election on a promise that we would hold power companies to account and that we would put power back in the hands of Victorians, and that's exactly what we're delivering here today.”
The new Victorian Default Market offer will include both a usage and supply charges and with the typical Victorian household using around 4000kWh, depending on the distribution zone, annual savings can be anywhere between $307 and $447.
How much will Victorians save on their energy bill?
“Every electricity customer wants to be on the best or cheapest offer, but most of the time, they’re not willing to do the work and shop around for a better deal,” said Mozo energy expert, Nathan Warne.
Warne went on to explain that while the Victorian Default Market Offer promises to save thousands of Aussie households on poor-value electricity offers, it still may not be for everyone.
“Just because any customer in Victoria can sign up to the Default Market Offer, it doesn’t mean you should. Make sure you compare your current plan to the new offer first before signing up - chances are you could already be on a better deal,” he explained.
And despite the estimated savings, the news wasn’t welcomed by electricity retailers, who now fear that the Victorian Default Offer would hurt competition and drive smaller players out of the energy market.
Meanwhile the Consumer Action Law Centre embraced the new offer, believe it would give Victorians the opportunity to sign up to a fair and cheaper electricity deal, without the hassle of sifting through confusing offers.
However, Warne believes that those who are willing to put in the hard work often reap the rewards.
“Don’t wait around for the new default offer to come into effect thinking it’s the best deal, know you’re getting the best deal by shopping around and comparing plans,” he said.
So if you’re ready to start comparing different energy plans in your area, head on over to our energy comparison tool.