Savings for Households and Businesses
Starting 1st July 2026, Victorian default electricity prices will decrease, as announced by the Essential Services Commission. This reduction will remain effective until 30th June 2027.
Price reductions will occur across Victoria’s five electricity distribution zones. Residential customers will see an average price drop of 5%, while small businesses will benefit from a 6% decrease.
On average, households utilising the Victorian Default Offer will save $84 annually, and small businesses will save $241 each year, according to the commission’s report.
Impact of the Price Reduction
Providing a fair electricity price, the Victorian Default Offer ensures that all homes and small businesses have access to a reasonable deal. It also sets a maximum price for residents of apartments, retirement villages, and caravan parks who are unable to choose their electricity supplier.
Currently, 17% of Victorian households, which equates to 512,000 homes, and 21% of small businesses, approximately 62,000, use the Victorian Default Offer. The pricing change impacts around 182,000 embedded network customers.
Chairperson of the Essential Services Commission, Gerard Brody, remarked, “Lower electricity prices will be welcome news for Victorian households and small business owners who continue to face cost-of-living pressures.”
Updated data on wholesale electricity contract prices and network tariffs led to final prices being lower than those proposed in March. This adjustment by the commission reflects changing market conditions.
These changes result in a clear and simple reference price, helping customers to more easily compare market offers.
Independent setting of the commission’s price adjustment from energy retailers ensures a fair approach to energy pricing in Victoria.
For households on a flat tariff using 4,000 kWh annually, average bills will drop across all distribution zones. AusNet customers will see a reduction from $1,908 to $1,748, CitiPower customers from $1,546 to $1,481, and Jemena customers from $1,638 to $1,563. Powercor and United Energy customers will also experience decreases in their bills.
Small businesses using 10,000 kWh annually will also benefit from lower bills. AusNet’s average billing will fall from $4,398 to $3,896, while CitiPower’s will reduce from $3,186 to $3,033. Jemena, Powercor, and United Energy customers will likewise enjoy savings.
Last updated: 29 June 2026, 12:00 pm
