The Australian Government’s Default Market Offer (DMO) protects home and small business electricity customers from excessively high standing offer contracts. The DMO also acts as a reference price, making it easier for customers to compare offers from different retailers.
The Australian Energy Regulator (AER) has released its draft determination for the Default Market Offer for 2021-22. This flags further substantial price reductions across NSW, south-east Queensland and South Australia.
AER Chair Clare Savage said the DMO caps the price retailers can charge consumers on a standing offer contract.
‘Since the introduction of the DMO in 2019, residential and small business standing offer consumers have seen their yearly bills reduce by hundreds of dollars. We have also seen retailer competition remain steady,’ Ms Savage said.
Public submissions for the DMO draft determination close 18 March 2021. The AER is expected to release the final determination in late April 2021.