ELECTRICITY bills for residential customers on the Victorian Default Offer in the Rural City of Wangaratta would fall under draft 2025-26 pricing, released by the Essential Services Commission (ESC) for public consultation on Thursday.

Under the draft, pricing for AusNet - which distributes electricity to the North East - would see average annual Victorian Default Offer bills for domestic customers on flat tariff (using 4000 kilowatt hours a year) drop for $1902 (currently) to $1883.

However, the average annual bill for small businesses (using 10,000 kilowatt hours a year) would rise, from $4388 (current) to $4465.

According to the ESC, approximately 13 per cent of households (337,000) and 20 per cent of small business customers (56,000) in the state are currently on the Victorian Default Offer.

The Victorian Default Offer is a fair, independently set electricity price that gives Victorians access to a reasonable electricity deal, and it acts as a reference price so customers can more easily compare different deals in the market.

ESC chairperson and commissioner Gerard Brody said the draft prices are set independently of energy retailers, "which ensures all Victorian households and small businesses have access to a fair and reasonable price".

"It also gives people confidence that they’ll continue to receive a fair deal without having to test the market each year,” he said.

The ESC's proposed rates vary between the state’s five electricity distribution zones, which accounts for the different costs of providing electricity across the state.

For residential customers on the Victorian Default Offer, annual prices would drop by $19 in some distribution zones but increase by up to $68 in others, compared to 2024–25.

The average across the five zones is a $12 increase on last year (less than 1 per cent).

The main factors influencing the proposed price change for residential customers are higher electricity network costs, which are partially offset by lower wholesale and environmental costs.

For small businesses on a Victorian Default Offer, annual prices would increase across the five distribution zones by between $77 and $128, compared to 2024–25.

The average across the five zones is a $103 increase on last year (three per cent).

The main factors influencing the proposed price change for small business customers are higher wholesale and network costs but also lower environmental costs.

Consultation on the draft decision runs until 11 April 2025, with the commission’s final decision due by 24 May 2025.