Hundreds of thousands of households will pay less for energy next financial year after a state regulator slashed the cap on standard electricity offers.
The average household on the Victorian Default Offer will pay $84 less than the year before after the Essential Services Commission unveiled the new cap on Monday to take effect from July 1.
Small businesses on the default offer will save an average of $241 in 2026/27 under the new settings.
The default offer is the maximum amount energy retailers can charge customers on a standing offer - a basic electricity contract for people who have not signed up to a market deal.
Most Victorians are on cheaper market offers rather than the default tariff, but it remains a safeguard for those unwilling or unable to shop around.
