AER - Default market offer - Price determination 2022–23 options paper - 25 October 2021

On 25 October 2021 the AER released its options paper on the Default market offer (DMO) price for 2022–23. This is our fourth DMO determination and we refer to it as DMO 4.

The options paper is the first step in the process in setting the 2022–23 DMO prices. As part of the DMO 4 consultation process the AER is reviewing the approach to setting the DMO to ensure it continues to meet the policy objectives.

The AER sought views on a number of aspects of the pricing methodology including how we:

• take into account retail costs, including how they change from year to year
• approach forecasting wholesale electricity costs
• should treat costs to serve customers with advanced meters, or customers on time of use tariffs
• set ‘model annual usage’, including ensuring our residential and small business annual usage benchmarks are ‘broadly representative’.