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Victorians Set to Save Money with Default Energy Offer

From the first of July this year, a new ‘default’ energy offer will see energy prices tumble for many households.

The Essential Services Commission has unveiled the ‘Victorian Default Offer’, which will replace the existing standing offers in Victoria. As it stands, the current standing offers are more expensive than this new default offer, so Victorian households on standing offers will be switched across to this new deal from the beginning of the new financial year.

Depending on where your home is located and which energy distributor you are under, by switching to the Victorian Default Offer, you could be saving on average between $310 and $450 per year.

 

What is the Victoria Default Offer?

The Victorian Default Offer will be the new ‘default’ energy plan for Victorian households who are not on an existing market plan by their energy service provider.

Up to now, the ‘standing offers’ has filled that void for customers who are not on a market offer. The main issue with these standing offers is that they were more expensive than market offers, and many Australian customers did not realise they were even on them. 

By signing up to a market offer, you could be saving more money on energy provided you met the discount conditions. However, when the contract has ended, providers are able to move you onto a standing offer if you are not active in the energy market.

This meant that overtime, many households were paying more money for their energy than they needed to. The price for being ‘loyal’ to your energy provider has been quite high.

The Victorian Default Offer aims to abolish the standing offers with a new default price for customers, and it will be much cheaper than the current standing offers. This means that households on a standing offer will be saving money on their energy plan from the first of July this year, when the Victorian Default Offer comes into effect.

The Essential Services Commission has estimated that over 130,000 households across the state will be able to save money after switching to the Victorian Default Offer.

 

Already on a Market Contract?

If you are on a market contract, the Victorian Default Offer may still be relevant to you.

In fact, if you compare your existing market plan to the Victorian Default Offer, and it turns out that the default plan is cheaper than your current plan, then you can switch to it to save yourself money.

Simply give your energy provider a call and ask them that you wish to switch to the Victorian Default Offer from July 1 this year.

 

Victorian Default Offer Prices

These prices also include the daily supply charge per kilowatt hour. The varying price differences in tariffs across the distribution zones reflects the unique costs for providing energy services in each of their respective areas. The below prices are GST inclusive, and the kilowatts are based on low/medium/high energy usage.

 

Distribution Zone2 000 kWh4 000 kWh8 000 kWh
Ausnet$968$1,528$2,763
Citipower$869$1,334$2,264
Jemena$876$1,385$2,404
Powercor$931$1,411$2,372
United Energy$857$1,380$2,428

 

You Could Still Save Money on Energy

While the Victorian Default Offer is set to save heaps of money for households within the state who are on standing offers, know that you could still possibly save even more money with the right market offer.

Comparing energy plans is what we do. 

Every day, we are comparing market offers between energy providers to find the best plans to suit your household.

Use our energy comparison tool to compare market offers and discounts to find a fair deal for you. 

Plus, our services are completely free to you.

If you wish to compare energy plans over the phone with one of our energy experts, then give us a call at 1300 683 009.


Source:

‘Electricity and gas retail markets review implementation 2018 (Victorian Default Offer)’ Essential Services Commission

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