The Victorian Default Offer is a standard electricity plan available across Victoria. It was introduced in July 2019 to replace standing offers that varied widely in price. The VDO is regulated and provides a basic electricity option that avoids high charges. It makes sure that customers have a fair plan without needing to negotiate or shop around.
Who Sets the Price
The Essential Services Commission sets the price of the VDO. This pricing is updated every year on July 1. Retailers must follow the pricing rules set by the Commission. The cost reflects expected supply and usage trends for the year ahead. These rates vary across the five electricity distribution zones in Victoria.
Why It Was Introduced
Before the VDO, retailers offered standing contracts with no price restrictions. Customers who didn’t choose a plan often ended up paying more. The VDO was introduced to stop this from happening. It created a consistent and regulated price for those who didn’t opt into market offers.
How the VDO Works
Households and small businesses that haven’t selected a market offer are automatically placed on the VDO. This plan covers standard usage and supply charges. It also serves as a benchmark, allowing customers to compare other offers against it.
Energy retailers use the VDO to show how much cheaper or more expensive their plans are. This makes it easier for people to see what they might save by switching plans.
Charges Under the VDO
Bills under the VDO include a daily supply charge and a usage rate. The supply charge applies regardless of how much electricity is used. The usage rate depends on the amount of electricity consumed. These charges vary by region because each distributor faces different supply costs.
The five main electricity distributors in Victoria are AusNet, Powercor, Jemena, CitiPower and United Energy. The price you pay depends on which network services your area.
Comparing the VDO to Market Offers
The VDO is not usually the cheapest plan. It offers price protection but does not include discounts or lower usage rates. Many customers on the VDO can reduce their bills by moving to a market offer.
Move-In Connect helps people compare energy plans and find better options. This can be especially useful after a move or when reviewing energy bills. Switching to a lower-rate market offer often leads to savings. It is better to shop around for better options and Move-in Connect offers electric plans from selected providers, making your move easier.
Who Ends Up on the VDO
Customers are placed on the VDO when they begin using electricity without choosing a plan. This often happens when someone moves into a new property where the power is already active. The VDO is used to keep the power on and ensure billing can begin.
Most people don’t realise they are on the VDO until they receive their first bill. Move-In Connect helps customers avoid this by checking their plan and offering suitable electricity plans.
VDO 2025 Price Update
The rates for the VDO change every July. The update reflects changes in energy costs and usage patterns. The Victorian Default Offer 2025 came into effect on July 1 and applies to all customers currently on the VDO.
Any changes will appear on future electricity bills. Customers can compare plans at any time. There is no need to stay on the VDO if a better option becomes available.
What to Do Next
Understanding the VDO is useful for managing electricity costs. Customers can ask their provider which plan they are on or check their bill. A simple comparison can reveal whether there is a more cost-effective option.
Move-In Connect helps by providing plan comparisons and helping with the switch. This makes sure that electricity services match usage needs and budget goals.
VDO Recap
The VDO is a regulated, fair electricity plan for those who have not picked another option. It prevents overcharging but is not always the most affordable choice. Many households can lower their bills by comparing electricity providers.
Move-In Connect helps customers find and set up the right energy plan. This prevents higher energy bills and costs. Reviewing your electricity plan is a good step towards lowering your energy costs.
