Joint Submission Responding to Request for Comment Paper 2026-27 Victorian Default Offer
A VCOSS‑led coalition has responded to the Essential Services Commission’s Request for Comment on the Victorian Default Offer (VDO) 2026–27, reaffirming the VDO’s role as a crucial consumer safeguard, especially for people on standing offers and those in embedded networks. The submission supports exploring a regulated “free power period” tariff within the VDO to provide a benchmark for consumers, while emphasising that many households cannot practically shift usage to benefit from such products. Recommended protections include opt‑in only application, a better‑off price guarantee, an easy switch‑back option, ongoing access to a simple flat tariff, and bill comparisons based on actual consumption rather than assumed behaviour change.
Consumer advocates urge a holistic, cost‑of‑living lens in price‑setting, favouring lower estimates where ranges are presented, and call for removing Customer Acquisition and Retention Costs from the VDO price stack. This submission seeks clarity on any pass‑through of AEMO’s cybersecurity charge, and argues that the VDO alone cannot deliver true affordability, recommending complementary measures such as a targeted social tariff for low‑income households. Financial Counselling Victoria contributed to this VCOSS‑led submission, drawing on frontline insights into energy hardship. Signatories: Victorian Council of Social Service (VCOSS), Brotherhood of St. Laurence (BSL), Community Information and Support Victoria (CISVic), Consumer Action Law Centre (CALC), Council on the Ageing Victoria (COTA), Energy Consumers Australia (ECA), Financial Counselling Victoria (FCVic), Uniting Vic.Tas, and Westjustice.
