Victoria Electricity Bills to Fall 5% From July 1 as 500,000 Homes Get $84 Relief

More than half a million Victorian households will soon receive cheaper electricity bills after the state’s energy regulator confirmed a reduction in default power prices for the 2026-27 financial year.

The Essential Services Commission (ESC) announced that electricity prices under the Victorian Default Offer (VDO) will fall by an average of 5% from July 1. The change is expected to save households about $84 a year on average, while small businesses could save around $241 annually.

The updated prices apply to roughly 512,000 households and 62,000 small businesses currently on the default offer. This includes about 182,000 people living in embedded networks such as apartment buildings, retirement villages and caravan parks, where residents often cannot choose their own electricity retailer.

Which Victorian customers will see the biggest savings?

The amount households save will vary depending on their electricity distributor. Customers connected to AusNet are expected to receive the biggest annual reduction, with average bills dropping by about $160. Citipower customers could save around $65, while Powercor customers are expected to see average savings of about $70.

According to the ESC, average residential electricity bills under the default offer are expected to fall from approximately $1,675 to $1,591 a year.

ESC chairperson Gerard Brody said the lower prices would provide welcome cost-of-living relief for many Victorians.

“Victoria’s default electricity prices are set independently of energy retailers, which ensures all Victorian households and small businesses have access to a fair deal,” Brody said.

He also noted that customers may still find lower-priced market offers by comparing plans, but the default offer remains an important safeguard and benchmark across the energy market.

Why electricity prices are falling in Victoria

The regulator said lower wholesale electricity costs, along with reduced environmental and retail operating costs, helped drive the reduction in prices.

Victoria’s Energy Minister Lily D’Ambrosio linked the cheaper prices to investment in renewable energy projects, saying the state was investing in “efficient, renewable energy” to help make life cheaper for Victorians.

The Victorian default offer is also expected to remain below benchmark electricity prices used in several other eastern states.

The move comes as the Australian Energy Regulator prepares to release its final default market offer for New South Wales, South East Queensland and South Australia. Draft figures released earlier this year suggested households in those states could also receive lower electricity bills from July.

Victorians can read the official Victorian Default Offer review by the Essential Services Commission for full pricing details.

For more Australian energy updates, read Swikblog’s coverage of the free midday electricity plan rolling out across Australia.

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