Victorian Midday Power Saver: Save on Electricity with Free Power Hours
The Victorian Labor government has clarified aspects of its Midday Power Saver initiative, stating that the free electricity period will take place from 11am to 2pm. This announcement follows the recent adjustment of default electricity prices, which has prompted a recalculation of potential savings.
Back in March, it was announced that the Victorian version of the federal Labor’s Solar Sharer initiative would be accessible to residential customers through the Victorian Default Offer (VDO) starting from 1 October, just ahead of the state election.
Details of the Free Electricity Scheme
State Energy and Climate Minister Lily D’Ambrosio confirmed this week that households enrolling in the opt-in scheme could save between $149 and $1,102 annually, depending on how much they adjust their energy usage to the midday hours. This scheme is designed to benefit those households that may struggle due to high electricity costs.
The federal Solar Sharer plan was unveiled last November as part of reforms to the Default Market Offer (DMO). It mandates that electricity retailers must provide at least three hours of free power during the day in DMO states, excluding Victoria, with the scheme beginning on 1 July.
For Solar Sharer participants, the free power periods are set for 11am–2pm in New South Wales and South East Queensland, while in South Australia the window is from 12pm–3pm. These timings remain consistent, regardless of daylight saving changes.
Addressing Energy Inequity
The rationale for both free power offers is to reduce energy disparity by extending the financial benefits of rooftop solar to those unable to install solar panels due to various reasons. Additionally, it encourages consumers to shift their energy consumption to the midday period, thereby utilising the surplus rooftop solar energy that frequently overwhelms the grid.
This initiative also aims to recalibrate discussions on the green energy transition, ensuring that the benefits are distributed more equitably among the populace.
The Australian Energy Regulator (AER), which oversees the DMO, has reiterated that starting in July, retailers will be obliged to provide a default Solar Sharer Offer as an “opt-in energy plan” for all smart meter customers, not just those under the DMO.
Potential for Savings
AER Chair Clare Savage noted that the new Solar Sharer Offer presents an opportunity for households to achieve further savings by adjusting their electricity usage, such as moving activities like laundry or electric vehicle charging to the free period. “We urge consumers to discuss this new option with their energy retailer as it could significantly lower bills for some households,” Savage remarked.
She highlighted that incorporating the Solar Sharer Offer into the DMO adds a level of security for consumers, ensuring they won’t encounter inflated rates outside the free power hours. However, the AER cautions that not all households may find Solar Sharer suitable, as enrolment requires a distinct opt-in agreement.
Price Adjustments Across States
Both the AER and Victoria’s Essential Services Commission (ESC) recently released their conclusions regarding default electricity prices across Australia’s various states and distribution zones, indicating widespread price reductions except in South Australia. In DMO regions, the AER reported residential standing offers would decrease by 3.4-5% in New South Wales and by 7.2% in South East Queensland compared to last year.
Conversely, South Australia is forecast to experience a minor increase of 1.4% (or $33) for annual bills, whereas customers on time-of-use retail plans will see a small reduction of 1.1% ($25) for residential accounts and a significant drop of 12.1% ($673) for small businesses.
In Victoria, the ESC found that prices for domestic customers under the VDO would witness reductions ranging from $160 for AusNet clients to $50 for United Energy clients, averaging near a 5% year-on-year decrease.
For small businesses, the VDO pricing will lower across various distribution zones, with reductions between $502 (AusNet) and $151 (Powercor) anticipated for the 2025-26 year, representing an average drop of roughly 6% versus the previous year.
In a statement made on Thursday, Minister D’Ambrosio highlighted that VDO customers enjoy benefits that surpass those of average DMO customers from other states. The upcoming 2026-27 VDO figures indicate savings of $444 for households and $1,299 for small businesses in comparison.
Largest Offer Across Australia
D’Ambrosio also asserted that the Midday Power Saver would represent the most extensive offer in the nation, as it will be accessible to all 2.6 million households equipped with smart meters in Victoria, vastly exceeding the 2.4 million in total across other states.
“Three hours of free power daily will significantly reduce household energy bills, and lower charges outside these hours mean families can save even more,” D’Ambrosio declared. “Victorians will benefit from the best free power offer available in the country.”
Nonetheless, there are some caveats regarding the Victorian Midday Power Saver plan. Specifically, electricity prices outside the designated hours may be slightly elevated, and actual savings will depend on individuals’ capacity to shift energy use from peak times to the midday period.
To enrol in the Midday Power Saver, consumers should reach out to their electricity retailer starting in October to ascertain whether the offer aligns with their needs. Retailers will be required to provide information on potentially more suitable plans based on the customers’ energy usage and clarify that not participating in the plan could lead to increased charges.
