Victorians could be slapped with electricity price hikes of more than 30 per cent under a proposal put forward by the state’s economic regulator.
The Essential Services Commission last week released a draft decision proposing a rise in the state’s default offer of more than $400 a year for residential customers.
It said the typical bill would go from $1403 to $1829 annually, while small businesses would face increases of more than $1700 on an average bill.
The proposed increases were primarily due to significant rises in wholesale electricity costs, which have been driven by higher commodity prices.
The commission is due to release its final decision in late May and the changes will come into effect in July.
More than 450,000 customers across the state are on the default offer, which sets a ceiling for the prices users can be charged.
It also represents the maximum amount customers in ‘embedded networks’, such as apartment buildings and shopping centres, can be charged.
The vast majority of electricity customers are on discounted retail offers.
Victorian Women Minister Natalie Hutchins acknowledged families were facing financial pressures and pointed to the next round of the $250 Power Saving Bonus on March 24 as a means to ease the burden.
Victorians on the default offer will pay less on average for their electricity than people on default offers in NSW, south-east Queensland and South Australia.
Opposition energy spokesman David Hodgett called on the government to explain how the SEC would reduce energy prices and guarantee Victoria's future energy supplies.
The Andrews Government has flagged roping in the Commonwealth to help fund the re-booted commission.
The State Department of Energy, Environment and Climate Action was in January seeking investment advisers for the revived commission.
The advice would help it leverage investment in renewable projects by partnering with suitable co-investors, developers and financiers, a tender document said.