Victorian Default Offer price increase
A new pricing regime started in July 2019, including introduction of 'Default Offers' in Victoria and across most of the National Energy Market.
The Victorian version is called the Victorian Default Offer (VDO) and it sets the price for standing offers in Victoria. Standing offers are the offers you'll be on if you have not specifically entered into a market offer plan. The purpose of the VDO is to set a cap on the maximum prices that can be charged to disengaged customers who have not actively shopped for an energy deal. The VDO also sets the benchmark for calculating discounts for market offers.
The Victorian Essential Services Commission has just announced the new VDO pricing to come into effect on 1 January 2020, and it is a price increase of about 8%.
THe VDO does improve things for disengaged customers, but it does nothing to ensure you're on the best possible deal:
The VDO does not necessarily reflect the best offer available to customers. Customers may be able to access a market offer with better prices than the VDO
That's where Bill Hero steps in. We'll monitor your bills and make sure you're always on a competitive plan, no matter waht's going on with VDO or DMO.