Competitive electricity deals remain best
Energy retailers said final prices for the Victorian Default Offer announced by the government today are closer to actual retailer costs than those proposed in the earlier draft, but noted that the vast majority of customers still remained better off on competitive market deals.
The Australian Energy Council’s spokesman, Nick Leys said, “the VDO will only save about 5 percent of Victorian customers money on their energy bills.
“For the vast majority of Victorians who have engaged with the market and already switched to a better deal, these reforms will not lower their bills.
“For that reason we would encourage all Victorian customers to continue to engage with the market, and to seek cheaper and more competitive market offers from their retailers rather than relying on the VDO.
“This kind of price regulation runs the risk of making more customers worse off in the longer term by driving out competition and innovation at the discount end of the market.”