Victorian Energy Market Update September 2023
Author, Essential Services Commission
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Chairperson’s foreword
Economic analysis of prices in the Victorian retail energy market Victorian consumers missing out on potential savings Energy in Victoria
Many Victorians are currently facing rising costs of living. Our report shows that the median residential electricity offer price increased 23 per cent between June 2023 and August 2023 after staying mostly flat over 2022–23. The median residential gas offer price rose by 15 per cent over 2022–23.
There are simple actions Victorians can take straight away to save on their energy bills, starting with making sure they are on their retailer’s best offer. Only one in two Victorian households were on their retailer’s best electricity offer on average in 2022–23.
By switching to their retailer’s best offer, around 28 per cent of Victorian households could have saved at least $100 per year on their electricity bills. Of
residential electricity consumers who could have saved over $100 per year, some could have saved a lot more.
Residential customers could have saved an estimated total of $191 million on electricity bills and $89 million on gas bills if they were on their retailer’s best offer.
While energy prices have increased, consumers can still find competitive offers in the market. The free and independent Victorian Energy Compare government
website can help consumers find the best value offer.
Our analysis shows the gap between the highest and lowest priced electricity offer is the largest it has been in the past three years. Gas offers are similar, with
significant differences between the cheapest and most expensive options.
This quarter we released a series of consumer resources, including animated videos and fact sheets in various languages, to inform Victorian embedded
network customers of their rights and protections.
Embedded network customers are also protected by the Victorian Default Offer, which is the maximum that these customers can be charged. The commission continues to hold regulated energy businesses to account and uphold the rights and protections of Victorian energy consumers, including those experiencing vulnerability. Additionally, our compliance and enforcement priorities for 2023–24 includes a focus on consumer protections when navigating the market. This includes regular best offer messages and sufficient notice of price or contract changes.
AusNet and Jemena paid $835,000 in penalties for allegedly failing to give notice of planned power interruptions to life-support customers and other
distributor obligations. We initiated the Retailer of Last Resort process for QEnergy Limited and Mojo Power East Pty Ltd in June 2023. This involved transferring approximately 8,000 customers to other retailers in Victoria to provide continued energy supply for these customers.
We will continue to use our full suite of regulatory tools to support and promote energy retailer compliance with critical safeguards in place to protect
Victorian energy consumers. And I urge Victorians to regularly review their energy bills and seek out the best value offers. If you’re having trouble staying on top of your bills, reach out to your energy retailer today to access the bill payment assistance you are entitled to under Victorian energy rules.
Kate Symons
Chairperson and Commissioner