Last week saw a wave of announcements that directly help Victorian households and businesses through lower costs, stronger consumer protections and more electric homes.
In addition, a free-of-charge 3-hour power window was announced to encourage utilisation of abundant renewable energy during the middle of the day.
Victorian default offer – Easing electricity costs
The Essential Services Commission (ESC) have released the final Victorian Default Offer (VDO) for 2026-27 which saw significant energy savings for Victorian households and businesses, with the VDO falling across all five distribution zones in Victoria.
On average, every Victorian household on the VDO will see their bills fall by 5%, or $84 this financial year. Every Victorian business on the VDO will also see their bills fall by 6%, or $241 a year.
At a time when global conflicts have seen costs rising across the board, Victoria’s investment in renewable energy has delivered much-needed cost of living relief to the 512,000 residential customers and 62,000 small businesses who rely on the VDO.
The VDO continues to play an important role as both a safety net tariff for customers who don’t actively engage in the market, and as a benchmark reference for price that retailers must use when advertising discounts.
Prices lower than the default market offer
The Australian Energy Regulator (AER) also released updates to the Default market offer (DMO), which applies across New South Wales, South Australia and South East Queensland.
The DMO serves a similar purpose to the VDO by protecting standing-offer customers while acting as a reference point for retail competition.
Importantly for Victorians, the VDO remains significantly lower than the DMO. When applying the same annual usage (4,000 kWh) for households, Victoria’s 2026-27 VDO is $444 (22%) cheaper than the 2026-27 DMO average across NSW, QLD and SA.
Similarly, for small businesses, when applying the same annual usage (10,000 kWh annual usage), the 2026-27 VDO is $1,299 (28%) cheaper than the 2026-27 DMO average across NSW, QLD and SA.
Easy Electric SEC: Simplifying electrification
The SEC also launched Easy Electric SEC, a new one-stop shop designed to help Victorian households switch from gas to cheaper, more efficient electric appliances.
The digital platform is free to use for all Victorians and gives households clear, personalised information to understand their energy use and potential savings.
Users can explore upgrades for solar, batteries, electric appliances, EV charging, and more, including potential rebates and discounts, get tailored, obligation-free quotes, and find local SEC-endorsed installers to supply and complete their upgrades.
SEC’s specialist support team is also on hand to provide free personalised guidance to help Victorians electrify their homes with confidence, at a pace and budget that suits them.
Switching key appliances like heating, hot water and cooking from gas to efficient electric alternatives can save Victorians up to $1,900 each year on their home energy bills – or up to $2,230 a year with rooftop solar. That’s more money for families and everyday essentials.
Visit Easy Electric SEC to understand how much you could save on your home electrification journey.
Embedded network review - A better deal for customers
New reforms were also announced to ensure Victorian households and businesses in embedded networks can also access a better deal for their energy.
Around 174,000 Victorians in apartments, retirement villages, and caravan parks and 20,000 small businesses in shopping centres are currently in private embedded energy networks which have historically had fewer choices and protections than standard customers.
All Victorians are entitled to access competitive energy prices, which is why a review is currently underway to reform prices for embedded network customers who often can’t shop around to get a better deal.
The next stage of reforms is looking at stronger, enforceable pricing rules and a new price cap for both electricity and gas services. Bundled services including bulk hot water and centralised heating and cooling are also being considered to ensure better deals for customers.
Under the changes, it is estimated that residential electricity embedded network customers could save up to $250 and small businesses up to $600 per year on their bills.
DEECA has released a consultation paper seeking evidence and feedback from industry and consumers that will help fill current information gaps relating to what people are currently paying for their energy in embedded networks.
Read more about the reforms, complete the survey or make a submission here: Embedded Networks Review | Engage Victoria.
Victorian Midday Power Saver
And last but not least, it was announced that the Victorian Midday Power Saver – a 3-hour, free-power window – would be available every day between 11 am – 2 pm from 1 October to spread the benefits of Victoria’s abundant solar generation at its peak and when power is cheapest.
The Victorian Midday Power Saver is designed to encourage households to use electricity during the middle of the day when solar generation is abundant and wholesale prices are often at their lowest.
This will provide real cost-of-living relief for Victorian households that can shift their electricity use to the middle of the day – running energy intensive appliances such as washing machines, clothes dryers, hot water heat pumps, or charging their electric vehicle or home battery.
Many Victorian homes have appliances that can be scheduled to turn on in the middle of the day, and it is even easier for people who regularly work from home.
It is estimated that Victorian households who opt into the Midday Power Saver could save between $149 to $1,102 a year, depending on their living situation, and if they are able to shift a significant portion of their energy use to the 11 am – 2 pm free-power window.
For more information, visit: Midday Power Saver.
Page last updated: 05/06/26