Have you been put on the standing offer in Victoria? We can help!

If you live in Victoria and have noticed your energy bills creeping higher lately, there's a chance you've been quietly moved onto a standing offer - and that could mean you're paying more than you need to for your electricity.

More and more Victorian households are being placed on the default standing offer by their retailer, often without realising it. This usually happens when a discount or fixed-term contract ends, or if a customer hasn’t actively chosen a new deal.

If you haven’t reviewed your energy plan recently, you could be on a higher rate than what's available in the competitive market. The good news? It’s easy to check - and even easier to switch.

Let’s unpack what the standing offer actually is, how it works in Victoria, and how Compare Energy can help you find a better deal.

What is the standing offer in Victoria?

The standing offer - officially known in Victoria as the Victorian Default Offer (VDO) - is a regulated energy price set by the government. It was introduced to protect customers who don’t engage in the energy market and might otherwise end up on high, uncompetitive tariffs.

Retailers are required to offer the VDO as a basic, no-discount, no-strings-attached plan. It’s essentially a safety net - and while it plays an important role in preventing price gouging, it’s not necessarily the cheapest option available.

If you haven’t contacted your energy retailer in a while or your previous plan has expired, you may have been automatically rolled over to the VDO without even knowing it.

Why are so many customers being moved to the standing offer?

There are a few reasons Victorian customers are finding themselves on the VDO:

  • Lapsed contracts: When a promotional or fixed-term deal ends, some retailers don’t automatically place customers on a new discounted plan. Instead, they move them onto the standing offer.
  • Lack of communication: Not all customers are made aware when their plan changes. You might miss the small print in an email or not realise your discounts have expired.
  • Retailer strategy: Some energy retailers may rely on customers not actively switching or comparing, allowing them to increase margins by keeping those customers on the default rate.

While the VDO is designed to be fair and transparent, in many cases it still costs more than market offers, especially if you’re a low- to moderate-usage household.

The pros and cons of being on the standing offer

Pros

  • Protection from overcharging: The Victorian Default Offer is regulated, so it acts as a cap on what retailers can charge you.
  • Simplicity: No discounts, usage thresholds, or hidden conditions. It’s a straightforward plan that’s easy to understand.
  • Flexibility: You’re not locked into any contract and can switch away at any time without penalty.

Cons

  • Higher costs: The biggest downside is price. In most cases, the standing offer is more expensive than the best deals available in the market.
  • No perks or rewards: You won’t get sign-up bonuses, usage discounts, or loyalty rewards - all of which are commonly offered on market plans.
  • Not tailored to usage: Market offers often allow you to choose plans based on how and when you use energy. The VDO doesn’t offer that level of customisation.

How Compare Energy can help you find a better deal

If you’re on the standing offer in Victoria, chances are you’re paying more than you need to. The team at Compare Energy can help you find a better plan - one that suits your household’s energy usage and budget.

Don’t get stuck paying more than you should!

The standing offer is a useful safety net, but it’s rarely the best value. If you’ve been placed on the VDO - or you're not sure what plan you’re on - now is the time to take action.

Whether you’re on solar, want a fixed rate, or just want the cheapest available option, Compare Energy can search offers from multiple providers to help you make an informed choice.

Call Compare Energy on 1300 790 106 to speak with a local expert who will guide you through the comparison process and help you switch to a better deal - often in just minutes.