Final decision

On 23 May 2024 the AER released its final determination on the Default Market Offer (DMO) price for 2024–25.

Revised final decision

On 7 June 2024 we published a consolidated document highlighting the changes from the small technical error for the purposes of convenience.

On 3 June 2024 we published a revised final determination for DMO 6.  The revision addresses a small technical error within the DMO model in calculating wholesale costs. These updated prices will come into effect on 1 July 2024. We registered the Competition and Consumer (Industry Code – Electricity Retail) (Updated Model Annual Usage and Total Annual Prices) Determination 2024 on 31 May 2024.

Consultant reports

ACIL Allen Consulting has supported us in the design of a forecasting approach for wholesale and environmental costs and provided an expert report on approaches for a retail allowance. 

The report Default Market Offer: Wholesale energy and environmental costs estimates for DMO 6 final determination by ACIL Allen Consulting was published alongside the final determination.

The report Default Market Offer: Methodologies for estimating the retail allowance and estimated values by ACIL Allen Consulting was published alongside the final determination.

We have published a spreadsheet of ACIL Allen’s modelling data for the cost of energy for interested stakeholders to understand its forecasts. The information contained in the modelling data is also set out in the ACIL Allen report for our final determination.

Because the treatment of solar exports within the forecasting approach to determine wholesale costs was a key topic raised by stakeholders in submissions to the draft determination, we sought additional advice from ACIL Allen Consulting and Frontier Economics. 

The notes provided by ACIL Allen Consulting (dated 21 May 2024) and Frontier Economics (dated 21 May 2024) outline their views on how solar exports should be treated within the forecasting approach to determine wholesale costs. These were published alongside the final determination.

Cost assessment model

On 3 June 2024 we released the revised model for calculating DMO prices for 2024–25.

As set out in the DMO 2024–25 final determination our approach is to use a cost build-up approach to calculate the DMO price, taking into account forecast costs for wholesale electricity, network, environment and retail costs. The model calculates the expected changes in these costs for 2024–25 for each area and customer type.

The information contained in the model is set out in the DMO 2024–25 final determination. We have published the model to provide stakeholders with additional transparency on how we calculated the DMO prices for 2024–25.