Victoria’s Essential Service Commission (ESC) has released its final determination for the 2025–26 Victorian Default Offer electricity price (VDO). The good news is there will be very little change to electricity prices from July 1
In 2024-25, electricity prices dropped across Victoria plus residents received a $300 Energy Rebate from the Federal Government which is about as good as energy prices get. This year prices are holding steady, while the Energy Rebate drops to just two payments of $75 in July and October. So, in real terms, Victorian households will spend more money on energy over the next 12 months.
Holding steady
For domestic customers, the Victorian Default Offer will rise by an average of $20 (or 1.2%) to $1,675 (based on annual usage of 4,000 kWh). Annual bills for domestic customers in the CitiPower network are set to rise by $90. At the same time, yearly costs in the Jemena network will fall by $26.
Small business customers’ average annual bill will rise by $90 (2.6%) to $3,6200 compared to 2024–25 (based on annual usage of 10,000 kWh). The most significant cost increase is in the Powercor zone (rising by $177).
Why the VDO matters
The Essential Services Commission, Victoria’s energy regulator, sets a safety net price each year. They consider everything that makes up power prices, including wholesale electricity, futures contracts, network, environmental, and retail costs. As a result, any change in the VDO is seen as a good gauge of what’s set to happen with electricity prices for all consumers.
What about my rates
The VDO only applies to the 12 per cent of households and 19 per cent of small businesses on Standing Offers price who are unable or unwilling to engage in the electricity retail market. Most Victorian energy customers are on market offers and will receive price change notices in the coming weeks. The Essential Services Commission Chairperson and Commissioner Gerard Brody said, “The default offer isn’t the cheapest on the market, as retailers look to attract new customers by offering a low price.”
In fact, in each of the five Victorian energy networks in May 2025, households on a flat rate tariff could pay 25% less than the VDO price. So, significant savings are available by comparing all retailers and switching to a cheaper power plan. See the latest ranking of retailers cheapest electricity plans for Victoria here.
2024-25 Victorian Default Offer electricity prices by network
Change in average annual Victorian Default Offer bills for residential customers on a flat tariff (4,000 kWh/year)| Ausnet | Citipower | Jemena | Powercor | United Energy | |
|---|---|---|---|---|---|
| 2025–26 | $1,908 | $1,546 | $1,638 | $1,703 | $1,579 |
| 2024–25 | $1,902 | $1,456 | $1,664 | $1,699 | $1,554 |
| % change | +$6 (0.3%) | +$90 (6.2%) | -$26 (-1.6%) | +$4 (0.2%) | +$25 (1.6%) |
Check your plan at least once a year
A big watch out is the price of market offers for existing customers. Over time, rates charged to existing customers creep up. This is why households should check their energy costs at least annually against the best offers to make sure their pricing is fair. While retailers are required to advise on each bill, if a cheaper plan may be available, not enough people are taking this up. If you don’t ask, you don’t get the savings.
Compare and save
Finding a better deal starts with comparing all retailers’ current offers to your current energy plans and making a change. Once you know the best deals, you can ask your current retailer to improve your offer or switch to a cheaper retailer. You can start your comprehensive comparison here with WATTever.Â