The Victorian Default Offer is set by the Essential Services Commission Victoria and will be updated as of 1 January 2022. Energy providers advertising rates need to base their discounts off the new reference price. Therefore, your customers may see differences when comparing December and January discounts. To help you, we have answered some FAQs about the changes.
What is a Victorian Default Offer (VDO)?
The Victorian Default Offer or VDO is an electricity tariff set by the Essential Services Commission Victoria (ESC). In effect, the VDO is the annual benchmark total bill amount (called a reference price) energy companies can reference based on a set average usage amount. It’s a reference price designed to make it easier for customers to compare energy plan discounts across different providers.
Which states use the VDO?
Victoria is the only state who uses the VDO. NSW, QLD & SA all utilise the DMO or Default Market Offer as a reference for pricing discounts.
What does the VDO change mean for ACN Energy Partner pricing?
Energy Partner Tariffs (or price per Kilowatt) are unchanged as of 1 January. However, because the reference price has changed, IBO’s and prospective customers may notice the discount % displayed on the Partner website is different. This is because the discounts included as part of the plans provided by our partners are benchmarked against the VDO.
What does it mean for ACN exclusive offers?
The discount based on the reference price will be different from 1 January, however, ACN’s exclusive offers remain competitive, and the tariffs or rates that a customer pays have not changed.
How should I talk about energy price my customers?
Our recommendation is to simply use the quoting tool or utilise the Sales hotline available to ACN customers for real time customer quoting. This is the best way to compare customer savings . Remember, it’s important to have a copy of the customer’s most recent bill so the in order to easily compare direct monthly or quarterly savings.
