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Small businesses to benefit from default offer extension to embedded networks


Thousands of small businesses in shopping centres, commercial towers and business parks could save hundreds of dollars a year on electricity.


From 1 September 2020, small business customers in embedded networks will benefit from the price protections in the Victorian Default Offer, which sets a maximum price for electricity sold in Victoria.

The decision to include embedded networks in the default offer, made by the Essential Services Commission, will give small businesses access to a fairer electricity deal. With this change, around 14,400 small businesses in locations such as shopping centres, commercial towers or business parks could save hundreds of dollars a year on bills.

The commission’s energy director Sarah McDowell says based on the current default offer small businesses could save $900 to $2,200 annually, with estimated savings are based on an assessment of the expected impact of the current Victorian default offer on standing offer prices as of May 2019.

“Small businesses in embedded networks were previously not covered by the same price protections as other Victorian businesses. Setting the default offer as the maximum price could mean businesses now have access to a fair deal with significant savings for some.”

Embedded network operators can still offer customers deals below the maximum price. The Victorian Default Offer prices for 2021 are under review.

Indicative Annual Bill (Small Business)

Estimated savings for customers currently on standing offers.

For more information on the Victorian Default Offer's extension to embedded networks, visit the Essential Services Commission.

The Essential Services Commission has also commenced consultation on a Victorian Default Offer price review for 2021.