Victorian Default Offer (VDO)

The Victorian Default Offer (VDO) is a set of prices set by the Essential Services Commission which apply to standing offer contracts. The VDO was introduced to ensure that standing offer contract prices are simple, trusted and reasonable. The VDO also serves as a reference point to make it easier for consumers to compare energy plans. 


For example, the VDO reference price for a hypothetical customer on a single rate tariff using 4,000 kWh annually in a particular region is $1,420 a year. 

What are the benefits of the Victorian Default Offer?

The Victorian Default Offer (VDO) as set by the Essential Services Commission has many benefits for customers. The VDO:  

  • Provides price caps on standing offer contracts. 
  • Is reviewed and updated annually. 

Frequently asked questions

The VDO is specific to Victorian energy customers. The equivalent Default Market Offer (DMO) is available in New South Wales, South Australia and South East Queensland. 

The VDO is relevant for all domestic and small business electricity customers.


The Victorian Default Offer (VDO) is a reasonable default price that is set by the Essential Services Commission and not by energy providers. It provides customers with a reasonable price if they are unwilling or unable to enter into a different energy plan with a provider.  

Market offers (such as Telstra Energy Electricity) are usually more competitively priced and offer additional benefits compared to the VDO. Market offer terms and conditions are set by the energy provider and prices can change in accordance with those terms and conditions. 

Energy providers must provide a standing offer contract to customers who: 

  • Never entered into an energy contract but are supplied with electricity.
  • Moved into a property and continued to use the electricity already connected. 
  • Requested a standing offer contract at a property already supplied with electricity.
  • Entered into a contract, cancelled the contract in the cooling off period but continued using the electricity. 


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