Regulator reduces Victorian default electricity prices
Essential Services Commission
The Essential Services Commission has announced a reduction in Victoria’s default electricity prices to apply from 1 July 2026 to 30 June 2027.
The Victorian Default Offer is dropping in each of the state's five electricity distribution zones, by an average of five percent for residential customers and six per cent for small businesses.
On average, households on the Victorian Default Offer will save $84 a year and small businesses on the offer will save $241 a year.
The Victorian Default Offer is a fair, independently set electricity price that acts as an important safeguard:
- ensuring all homes and small businesses have access to a reasonable electricity deal, even if they are unable or unwilling to engage in the retail market
- setting a maximum price a retailer can charge people living in apartments, retirement villages and caravan parks who cannot choose their own electricity supplier
- acting as a reference price so customers can more easily compare different deals in the market.
Approximately 17 per cent of households (512,000) and 21 per cent of small businesses (62,000) are currently on the Victorian Default Offer. It is a price cap for approximately 182,000 embedded network customers, who cannot choose their own electricity supplier.
The final default prices are a reduction on the prices the commission proposed in its draft decision in March. This is because of updated data about wholesale electricity contract prices and network tariffs.
Residential
Average annual Victorian Default Offer bills for households on flat tariff, assuming 4,000 kWh/year.
|
|
AusNet |
CitiPower |
Jemena |
Powercor |
United Energy |
Victorian average |
|
2025–26 |
$1,908 |
$1,546 |
$1,638 |
$1,703 |
$1,579 |
$1,675 |
|
2026–27 |
$1,748 |
$1,481 |
$1,563 |
$1,633 |
$1,529 |
$1,591 |
|
Change in $ |
-$160 |
-$65 |
-$75 |
-$70 |
-$50 |
-$84 |
|
Change in % |
-8% |
-4% |
-5% |
-4% |
-3% |
-5% |
Small business
Average annual Victorian Default Offer bills for small businesses on flat tariff, assuming 10,000 kWh/year.
|
|
AusNet |
CitiPower |
Jemena |
Powercor |
United Energy |
Victorian average |
|
2025–26 |
$4,398 |
$3,186 |
$3,720 |
$3,508 |
$3,290 |
$3,620 |
|
2026–27 |
$3,896 |
$3,033 |
$3,488 |
$3,357 |
$3,124 |
$3,380 |
|
Change in $ |
-$502 |
-$153 |
-$232 |
-$151 |
-$166 |
-$241 |
|
Change in % |
-11% |
-5% |
-6% |
-4% |
-5% |
-6% |
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
“Lower electricity prices will be welcome news for Victorian households and small business owners who continue to face cost-of-living pressures.”
“Victoria’s default electricity prices are set independently of energy retailers, which ensures all Victorian households and small businesses have access to a fair deal.”
“You can find a better deal by shopping around, but the default offer provides a simple, fair option to all households and small businesses.”
Chairperson available for interview
Essential Services Commission Chairperson Gerard Brody is available for interview about today’s announcement. To arrange an interview, please call 0437 677 385 or email [email protected].
