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What is the Victorian Default Offer?

The VDO is set electricity pricing for standing offers — these are essentially default plans you can go on if you can’t or don’t want to go with an advertised or market plan. Each financial year, the Essential Services Commission (ESC) decides what the VDO will be so that all Victorian households and small businesses can access fairly priced electricity without having to engage in the retail electricity market.1Essential Services Commission – Victorian Default Offer Additionally, the VDO acts as the maximum price that people on embedded networks can be charged.2Victoria State Government – About the electricity sector Of course, you don’t have to go with the VDO; it’s just there if you want to use it. 

The VDO first came into action back in July 2019 after an independent review of the state’s electricity and gas retail markets.3Engage Victoria – Review of the Victorian Default Offer Order in Council What this review found was that many customers were paying too much for their energy.4Premier of Victoria – New Victorian Energy Default Offer So, the Energy Fairness Plan came along with several reforms, including the VDO, to help make the electricity market simpler and more affordable.5Victoria State Government – Review of Electricity and Gas Retail Markets in Victoria (‘Thwaites Review’) and outcomes from the Energy Fairness Plan