We are reviewing the Victorian Default Offer prices to apply from 1 July 2024 to 30 June 2025.
Victorian Default Offer price review 2024–25
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Request for comment paper2 November 2023
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Submissions close14 December 2023
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Draft decision paper19 March 2024
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Public forum28 March 2024
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Submissions close19 April 2024
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Final decision paperMay 2024
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New prices in effectJuly 2024
Overview
We are responsible for setting and annually reviewing the Victorian Default Offer prices. The default offer is designed to be a simple, trusted and reasonably priced electricity option that safeguards customers that are unwilling or unable to engage in the market.
We are consulting on the Victorian Default Offer prices to apply from 1 July 2024 to 30 June 2025.
We have published our draft decision on 19 March 2024. And we held an online public forum on 28 March 2024 to present our draft decision and to hear from our stakeholders.
While our draft decision was based on largely the same methodology with last year, we updated our cost benchmarks with the most recent data available when making our decision. We will update the inputs for our cost benchmarks again when making our final decision.
Feedback on our draft decision paper has closed on Friday, 19 April 2024.
We plan to release our final decision in late May 2024.
Victorian Default Offer 2024-25: Draft Decision
Fact sheets
Have your say
We have collected submissions to our draft decision via our Engage Victoria page on Friday, 19 April 2024.
Our online forum
We have held an online public forum on Thursday 28 March 2024, for stakeholders, consumers and the industry to hear about our draft decision, and for us to hear from stakeholders, consumers and the industry.
How we calculate the Victorian Default Offer
We are required to base the Victorian Default Offer on the efficient costs of the sale of electricity by a retailer. In doing so, we take into account:
- wholesale electricity costs – based on the price of electricity costs in the futures market
- network costs – taken directly from tariffs approved by the Australian Energy Regulator
- environmental costs – taken from public information on the costs of environmental initiatives
- retail costs – based on the customer weighted average of retailers' actual costs
- other costs – taken directly from published reports from industry bodies
- network losses – taken from the Australian Energy Market Operator and electricity distributors
- retail operating margin – based on a benchmark from comparable regulatory decisions.
Next steps
We will review the feedback on our draft decision collected by 19 April 2024 and plan to release our final decision in late May 2024.