The Victorian Government is making energy prices fairer for more Victorians by introducing a maximum pricing cap for households and small businesses in embedded networks.
From September, the maximum price which embedded network customers can be charged for their electricity will be set to the Victorian Default Offer.
Member for Tarneit Sarah Connolly said this new pricing cap will ensure embedded networks customers in Tarneit can access a fairer energy price and save hundreds of dollars a year on electricity bills.
Residents of apartment buildings, rooming houses, caravan parks and retirements villages could save between $180 and $370 a year on bills, while small businesses in shopping centres could save between $900 and $2200. These estimated savings are based on the current Victorian Default Offer on standing offer prices as of May 2019.
More than 120,000 residential and small business customers live or work in embedded networks across Victoria. Many of these customers will save on their current electricity rates as a result of the new price cap.
The announcement follows a decision by the Essential Services Commission to set the Victorian Default Offer as the maximum price for these customers, providing protections more consistent with those currently available to customers who dont live in embedded networks.
The Victorian Government introduced the Victorian Default Offer in July 2019 to make the electricity market simpler and more affordable for Victorians. The price is set by the Essential Services Commission and represents the independent regulators view of the most efficient price of supplying electricity in Victoria.
Electricity retailers can still offer embedded network customers deals below the maximum price.
For more information on the Victorian Default Offer, visit www.energy.vic.gov.au/victoriandefaultoffer
Quotes attributable to Member for Tarneit Sarah Connolly
Our changes will ensure that households, small business and shopping centres can get access to fair energy prices to help them save on their energy bills.