While a modest electricity price rise raised concerns across Victoria, a community group in the Dandenongs said the real issue was being overlooked – what’s actually making energy bills so high.
A grassroots group advocating for affordable and sustainable energy in the Dandenong Ranges, Repower The Dandenongs said the modest increase in the Victorian Default Offer (VDO) was not what’s hurting households most. Instead, it pointed to rising gas prices and draughty, inefficient homes as the real culprits behind energy stress in the region.
In late May 2025, the Essential Services Commission announced the VDO will increase by just $20 a year for the average household, bringing the typical bill to $1675. The 1.2 per cent rise is mostly due to network costs, not the cost of electricity generation.
But Repower The Dandenongs secretary, Daniel Wurm, said the spotlight was on the wrong part of the energy system.
“Let’s be clear, this isn’t a renewables problem,” Mr Wurm said.
“In fact, solar, batteries and supporting technologies are the key to bringing energy costs down permanently.”
The group called on the Victorian Government to ramp up long-term support measures, especially for renters and low-income households, including:
Helping households move away from expensive gas appliances
Expanding access to solar panels, batteries, and efficient electric heating and cooling
Investing in retrofitting old, energy-hungry homes
Mr Wurm said many households in the Hills were stuck with outdated heating and insulation, forcing them to rely on expensive gas to stay warm.
“Without structural change, people will keep feeling the pinch every winter,” he said.
“We support bill relief for vulnerable households, but we also need to fix the underlying issues that make bills unaffordable in the first place.”
The Consumer Action Law Centre repeated that sentiment in a statement welcoming the VDO decision, but warned that high energy costs continued to put pressure on people in hardship.
Consumer Action chief executive officer, Stephanie Tonkin urged energy retailers to step up support for customers in debt and called for the introduction of a social electricity tariff to assist low-income households.
“The structural hardship we observe on our frontlines means that many people on low incomes are simply unable to afford the cost of energy,” she said.
Mr Wurm said those struggling with power bills could find free, practical advice on Repower The Dandenongs website or Facebook group.
“We help people cut their energy use and bills permanently – while reducing emissions too,” Mr Wurm said.
With the coldest months still ahead, the message from Victorians is clear, real energy relief won’t come from capping price rises alone – it’ll come from warmer homes, cleaner power, and a shift away from expensive gas.
