The Essential Services Commission (ESC) has announced that the Victorian Default Offer (VDO) for electricity customers will increase by an average of 7.8 percent on 1 January 2020.
As a result, AGL will adjust electricity prices for its Victorian residential and small businesses customers on standing offers in line with the VDO price determination.
AGL Chief Customer Officer Christine Corbett said that the average increase across existing discounted electricity market contracts is 5.0 percent1.
Ms Corbett said around 107,000 customers on AGL Essentials and Essentials Plus plans would not be affected by this increase, which is effective 22 January, as their prices are fixed for the term of their plan.
“As the ESC announced, the change in the VDO is due to a combination of factors, but mainly higher network charges and wholesale electricity prices,” she said.
“The percentage increases for electricity will vary for individual customers according to factors including their distribution area and their usage.
“We are committed to making energy as affordable as possible and urge customers to contact us if they need assistance with paying their bills.”
AGL will announce its gas price changes on 18 December, in line with regulatory notice requirements.
1 This amounts is a weighted average across all distribution areas and tariff types, based on an average usage of 4,800 kilowatt hours (kWh) per annum for residential customers and 19,500 kWh per annum for small business customers. Although some discounted market contract customers will see an increase that reflects the increase in the VDO, this increase will not be applied to all market contract customers, depending on their plan.