Victorian energy price updates, January 2020
Wednesday 08 January 2020
As Aussies across the country ease themselves back into work following the Christmas break, the Victorian government has been well ahead of the game, announcing its decision for the Victorian Default Offer (VDO).
According to the Victorian State Government economic regulator, the Essential Services Commission, electricity bills for customers on a flat tariff standing offer will see an increase in annual electricity bills by $100, from $1,400 to $1,500.
The Essential Services Commission paper has revealed that a rise in wholesale electricity purchase costs and network charges are to blame for the price hike.
The paper outlined that purchasing wholesale electricity has become more costly to retailers in recent months, accounting for more than half of the increase in the VDO.
It’s also become more expensive for retailers to transport electricity to customers, as the Australian Energy Regulator (AER) approved higher network tariffs for 2020 for the five distribution zones it regulates.
January 1 2020 Victorian price updates
The table below is the electricity price changes of the cheapest market offers by retailers, averaged across the five distribution zones and are based on an annual usage of 4000kWh.
“The VDO was introduced to protect Victorian customers on standing offers from being stung with high electricity prices, but it didn’t guarantee households a better deal,” said Mozo energy expert, Nathan Warne.
“And now that VDO prices have gone up, it might be worth comparing other offers by shopping around on market offers.”
So if you’re interested to find out if you could be on a better value electricity plan in 2020, enter your postcode below to start comparing electricity deals in your area.
Read our last electricity price update update