Compare our
Business Electricity Rates

Why do retail electricity rates change?

There are three major components of a typical energy bill: energy costs (for electricity generation), network costs (for delivery of energy via power lines) and retail costs (for procuring energy, providing service, billing etc). Energy bills also include components for Australian and state and territory government-based environmental programs such as those aimed at increasing renewable electricity generation.

To meet customer demand, energy retailers, like us, buy electricity from the wholesale market where prices for electricity can fluctuate. From time to time, we alter our retail energy charges to reflect changes in wholesale electricity costs. Your network distributor may alter the costs they pass on to us annually, and we adjust your network energy charges to reflect those changes.

Market charges incurred by us are for government mandated environmental schemes and fees for Australia’s independent energy market operator, AEMO. We seek to align your market charges to the costs we incur.

We are continually seeking opportunities to reduce our costs and achieve operational efficiency and excellence. Lowering our costs enables us to pass on cost benefits to our customers.

What happened on 1 January 2020?

The prices under the Victorian Default Offer (VDO) were reset from 1 January 2020. The VDO prices have increased, with two major factors being an increase in wholesale electricity prices and increased network costs. Around 95 per cent of the increase in the VDO has been due to rising forecast wholesale prices and network costs. On average, annual prices for households and small businesses are expected to rise by $110 and $465 respectively. 

We have provided you with written notice of these changes to your rates. If you have any questions or need any clarifications, call us on 1300 599 888 or email at info@bluenrg.com.au

Ref: Essential Services Commission 2019, Victorian Default Offer to apply from I January 2020: Final decision, 18 November 2019

What is the Default Market Offer and the Victorian Default Offer?

From 1 July 2019, the Australian Energy Regulator (AER) mandated all energy retailers to make a Default Market Offer (DMO) available to households and small business customers in New South Wales, South Australia and south east Queensland. In Victoria, the Victorian Default Offer (VDO), set by the Essential Services Commission (ESC), was similarly designed to re-regulate electricity pricing to ensure that more Victorian households and small businesses can access a fair price for their electricity service.

Victorian Default Offer (VDO)

The VDO is part of the Victorian Government’s Energy Fairness Plan to ensure a fair price for more Victorian households and small businesses for their electricity usage. Victorian households and small businesses (with the exception of embedded network customers) can ask a retailer for the VDO or can use the VDO rates to compare against offers to ensure they’re getting value for money on electricity.

From 1 January 2020 the VDO covers all standing offers, including those based on time-of-use, demand, and flexible tariff structures. This has broadened the VDO to provide a safeguard for all standing offer customers.

Victorian Default Offer for small business customers (less than 40MWh per year) and residential customers

If you are on a flexible tariff market offer (usually indicated with peak / off peak rates on your invoice), a new regulated price has been introduced from 1 January 2020, so you may wish to review what that means for you now.

Default Market Offer (DMO)

The DMO is the annual maximum total bill amount energy retailers can charge for the standing offer prices based on a set average usage amount. It was also designed as a reference price to make it easier for customers to compare energy plans.

It is based on an annual usage amount of 20,000 kWh per year. As a Blue NRG customer, it's very likely you're on a market offer with us. In the link below, you can access information about how the DMO compares to the current market offers available at Blue NRG in New South Wales, South Australia and Queensland.

Reference Price & Market Offer Comparison

As an existing Blue NRG customer, you may wish to review the DMO rates in one of the tables below and get in touch with us about any queries you may have. If you do nothing, everything will remain as is with your current plan.

Default Market Offer for small business customers in New South Wales (less than 100MWh per year) 

Default Market Offer for small business customers in South Australia (less than 160MWh per year)

Regulated price or market offer – which is better?

According to both the AER and the ESC, the DMO and the VDO do not necessarily reflect the best offers available to customers. The Australian Energy Council has advised customers to stay on or switch to a market deal with your retailer rather than rely on the regulated pricing because it will save you money.

Call us on 1300 599 888 today to see if a Blue NRG offer is right for you.