Summary
The Victorian Default Offer (VDO) is a rate for electricity that's reviewed and set by the Essential Services Commission (ESC) each year. It's also called the VDO reference price, and it serves these purposes:
If you have a 'standing offer' for electricity (a contract with regulated terms and prices) you'll be on regulated VDO rates
If you like searching for a better deal, you can compare offers to the VDO rates. Electricity providers who supply to customers in Victoria must compare their prices to the VDO rates, so that customers can easily compare different offers.
It can be the maximum price for embedded electricity customers
The VDO is for Victorian customers. If you're in another state, see the Default Market Offer article.
More info
What is the VDO?
What's included in the VDO rates?
The VDO is made up of a daily supply charge and a usage charge (per kilowatt hour). All prices include GST.
How to use the VDO to assess offers
When we present market offers for electricity, we'll show you how the market offer (or electricity plan) compares to the VDO. We'll present:
the comparison as a percentage amount that’s more or less than the VDO, or a statement saying the offer is equal to the VDO reference price
an estimated yearly cost of the electricity plan – this calculation is based on a set electricity use for a household or business, on a particular tariff type, in a particular distribution area. (Keep in mind, the amount you’ll actually pay depends on how much electricity you use.)
When you compare market plans for your supply address, you'll see the VDO in action.
