victorian default offer 2021
TRANSCRIPT
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Victorian Default Offer applying from 1 January 2022
Draft decision
Public forum
Thursday 23 September 2021
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Acknowledgement of country
We acknowledge the Traditional
Owners on all of the lands
wherever you are today.
We pay our respects to Elders
past, present and Aboriginal
Elders of other communities who
may be with us.
We also acknowledge the
connection Indigenous
Australians hold to country and
culture.
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Welcome
Please mute your microphone
This public forum is being
recorded (including questions,
comments and chats)
Use the zoom chat for questions
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Our approach today
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We’re keen to hear from you
We will engage on matters you’d like to explore further
Please make submissions via Engage Victoria:
due date - 8 October
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Today’s agenda
Time
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11:00 am Introductions and agenda – Kate Symons,
commission chair
11:10 am Our draft decision – Jonathan Roberts, project
manager
11:20 am Ben Barnes, Australian Energy Council
Meng Goh, AGL
Selena Liu, EnergyAustralia
Sean Greenup, Origin Energy
11:40 am Gerard Brody, Consumer Action Law Centre
12:00 pm Questions
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Overview of our draft decision
▬ Approach is largely unchanged
▬ Including approach to calculating wholesale costs
▬ In the absence of strong new evidence, intend to
remove temporary allowance for bad debts
▬ Retains approach to calculating Victorian Energy
Upgrade costs (using historic 12-month average price
for Victorian energy efficiency certificates)
▬ Regulatory period of six months from 1 January
2022 to 30 June 2022
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Our draft decision would lead to lower annual bills - residential
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Timeframes for the 1 January 2022 Victorian Default Offer review
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Key milestone Date
Draft decision – release 7 September 2021
Draft decision – public forum 23 September 2021
Draft decision – submissions close 8 October 2021
Final decision and determination – release By 25 November 2021
1 January 2022 Victorian Default Offer takes effect 1 January 2022
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OUR VISION:a just marketplace,
where people have power and business plays fair
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OUR PURPOSE:To make life easier for people experiencing vulnerability and
disadvantage in Australia
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What is the policy objective?
“The objective of the Victorian default offer is to provide a simple, trusted and
reasonably priced electricity option that safeguards consumers unable or unwilling to engage in the electricity
retail market.”
Victorian Default Offer
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2019
• 46% satisfied with value for money
• 30% confident market working in their interests
2021
• 73% satisfied with value for money
• 42% confident market working in their interests
VDO has contributed to consumer trust
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1. Falling wholesale prices must flow through to customers
2. Removal of bad debt provision is good
3. Retail margin
4. Productivity factor
Our thoughts on the draft decision
Fair outcomes
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• Ensuring customers are accessing best offers
• Our recent Energy Assistance Report
Other issues
Getting fair prices for all households
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Questions
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Use the zoom chat for questions
Mute your microphone (when not
speaking)
The recording (including questions, comments
and chats) + slides + questions will
be published online
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Questions raised by stakeholders
1. If the cost of procuring electricity is higher in quarter 1
and quarter 2 how can using an annual average for the
underlying wholesale electricity prices in this default
offer be justified?’
2. The accuracy of the past forecasted wholesale
electricity prices compared to the actual spot market
outcome, was the result in the expected range?’
3. How will government policy take into account industry
concerns/issues?
4. How is our view going to influence the Victorian default
offer decision?’
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Next steps
• Make submissions or comments via Engage Victoria –
www.engage.vic.gov.au.
Key dates
• Submissions on draft decision paper – 8 October 2021
• Final decision and determination – 25 November 2021
• Victorian Default Offer takes effect – 1 January 2022
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