Locking in fair electricity prices

The Australian Government’s Default Market Offer (DMO) price cap continues to deliver fair electricity prices for consumers.

The DMO was introduced in 2019 to lock in fairer electricity prices for customers across NSW, South Australia and south-east Queensland who are on standing offer contracts.

The government is monitoring the impact of the DMO. The review will consider how consumers have benefited and become more engaged.

Average residential customers who were on standing offers prior to the DMO, will see their bills fall by up to $780 in 2021-22 compared to what they would have paid before the DMO.

Average small business customers remaining on standing offers could be up to $3105 better off in 2021-22.

The median market offer has continued to decrease by up to 13.2% over the 2-year period.

The ACCC’s 5th report on its ongoing inquiry into the NEM confirmed the DMO continues to deliver strong results.

The Australian Government welcomes input from electricity customers into how the DMO functions for them.

To contribute to the consultation process, visit the consultation website. Submissions are open until 11 October 2021.

Minster’s media release.