Victorian Default Offer price review 2024–25

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 released a request for comment paper in early November 2023. Submission on our request for comment paper closed on 14 December 2023.

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 past reviews we have done so by considering:

• 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 release our draft decision for stakeholder consideration in March 2024.

We also plan to hold a public forum (online) in March (or April). We will update this page with more information on the forum including how to register, closer to the event.

After considering submissions on our draft decision we will release our final decision in May 2024.