The reduction in the Victorian Default Offer (VDO) announced today is positive news and will deliver welcome bill relief for those on the VDO, but many consumers could make further savings by switching to cheaper competitive market deals, according to the peak body for retailers.
The AEC's Chief Executive Officer, Louisa Kinnear, said, "The VDO is intended to be a fairly priced safety net, but it's often not the cheapest offer available.
"It's encouraging most Victorians are already on competitive deals, but we would urge anyone who hasn't made the move to contact their retailer to see if they have a better deal.
"We welcome the ESC's continued commitment to consistency in setting the VDO. A predictable framework provides retailers with regulatory certainty, allowing them to plan effectively and make more efficient decisions that ultimately benefit all customers.
The Australian Energy Council has also encouraged governments to take further steps to help households. It has released an Affordability Action Agenda that outlines a range of measures government could consider to reduce price pressures.
"In this environment there are also a range of actions and opportunities for government to continue to support customers and reduce cost pressures," Ms Kinnear said.
"As this decision highlights, environmental scheme costs are a material component of an energy bill, and there are options for Governments to simplify these schemes and ensure they deliver the greatest benefits to consumers.
Ms Kinnear said, "The AEC's Affordability Action Agenda calls for a national review of jurisdictional retail certificate schemes with the aim of simplifying the number of different schemes to further bring costs down.
"In addition, well targeted incentives to encourage customers to electrify their homes, and support for those who can't make the switch would help with home energy bills."
You can also compare prices by going on to the independent Victorian Energy Compare (www.compare.energy.vic.gov.au) website.
About the Australian Energy Council
The Australian Energy Council (AEC) is the peak body for energy retailers and generators operating in competitive markets.
Our members generate and sell energy to over 10 million homes and businesses and are committed to delivering a reliable, affordable and decarbonised energy system for consumers.
The AEC supports net zero by 2050 and recognises the electricity sector's role in reducing Australia's emissions. Our members are major investors in renewables, firming and storage technologies that are critical to ensuring customers continue to receive reliable and sustainable energy supply as we navigate the energy transition.
