Power Price Changes Set for Victoria – What It Means for You

The Essential Services Commission (ESC) has announced its final decision on the Victorian Default Offer (VDO) for 2025–26, confirming the electricity prices that will apply from 1 July 2025 to 30 June 2026. This comes after wide consultation with both the public and the energy industry, as well as updated economic analysis.

The VDO exists to make sure every Victorian, including those not actively comparing electricity plans, still gets a fair deal. It also serves as a benchmark price, making it easier for customers to understand and compare electricity offers. For people living in embedded networks, such as apartments or office buildings, it sets a cap on what retailers can charge.

Right now, around 12% of households (about 348,000) and 19% of small businesses (roughly 55,000) are on the VDO. An additional 190,000 customers in embedded networks are also covered. These numbers show just how significant this price setting is for Victorians across the state.

Depending on where you live, the changes in annual electricity prices vary. In one area, household bills may drop by $26, but in others, increases could be anywhere between $4 and $90. On average, that’s a $20 rise across Victoria—roughly a 1% jump. The main reasons? Higher costs for networks and wholesale electricity, although these are partly balanced by lower environmental costs.

Small businesses will also see price shifts, with annual increases ranging from $10 to $177 depending on location. On average, that's a $90 or 3% rise. These changes are driven by the same cost factors as for households—higher network and wholesale prices with slight relief from lower environmental charges.

The ESC took fresh data into account before finalising the VDO. This included updated network and metering charges, and ASX Energy futures contract prices. These new insights caused some adjustments, with price outcomes slightly different from what was proposed back in March.

The ESC says community and stakeholder feedback played a key role in shaping this final determination. ESC Chair Gerard Brody thanked everyone who participated, noting that public input helped ensure the offer remains balanced and fair.

Gerard Brody emphasised that while the VDO might not always be the lowest offer available, it guarantees a price that’s independently set and won’t change unexpectedly. This gives Victorians peace of mind—especially those who prefer not to shop around for energy deals each year.

The ESC also reminded customers that if they’re struggling to pay their energy bills, they should contact their retailer. Retailers are required to offer support through payment plans, concessions, and utility relief grants.

As the energy landscape continues to shift, EServices4U is here to support you in making smart, affordable energy choices. From solar and wind consultations to energy procurement, billing audits, and customized efficiency solutions, our team empowers households and businesses to reduce energy costs while contributing to a greener future. Learn more at www.eservices4u.com.au and discover how you can take control of your energy use today.