How much Victorian electricity bills are expected to rise by

The Essential Services Commission plans to increase energy prices by about $426 for residential customers on the Victorian default offer.

The Commission has released a draft decision proposing increases from July 1.

For residential customers, it’ll mean a default offer electricity bill increase from $1403 to $1829 per year. For small businesses, typical default offer bills are expected to increase by about $1738 to $7358 per year.

Press PLAY below for more info on the expected increase

About 400,000 residential and 55,000 small businesses customers are currently on the Victorian Default Offer.

Executive director of price, monitoring and regulation at the Essential Services Commission, Marcus Crudden, says states and territories across the country are experiencing “similar” rises in dollar terms, but the percentage rise is higher in Victoria.

“They already have higher bills,” he told Neil Mitchell.

Mr Crudden says the expected hike is “most likely a temporary increase” and the default offer looks likely to fall next year, but it’s a “volatile situation”.

Press PLAY below to hear what’s fuelling the expected increase