The amendments to the Competition and Consumer (Industry Code – Electricity Retail) Regulations 2019 (the Regulations) require that the AER publish guidelines setting out its intended approach to determining the DMO, how it will achieve the DMO objective and how it will meet the requirements of the Regulations.
The DMO guidelines are intended to enhance transparency, improve regulatory certainty in our approach and supplement our approach to annually determining the DMO.
The AER is required to publish the final DMO guidelines by 1 December 2026.
The Regulations require the AER to set out the following in the DMO guidelines:
- the approach and methodology we propose to use to identify and determine the cost components for the comparison price set by the AER for non-regulated tariffs
- the approach and methodology we propose to use to identify and determine the cost components for determining tariff caps for regulated tariffs
- the information and data we intend to use to determine those cost components
- the approach and methodology we propose to use to determine free usage periods for Solar Sharer Offer regulated tariffs
- any additional tariff type that we consider should be determined as a regulated tariff
- the process we propose to undertake for the purposes of making determinations, including determining additional types of regulated tariffs, model annual usage, comparison prices, tariff caps, free usage periods for the SSO and reasonable use tariff cap for the SSO
- any other matters we consider relevant to achieving the DMO objective, which is to provide small customers that are supplied with electricity at standing offer prices with a fair, trusted and reasonably priced electricity option that reflects the costs of supplying small customers with an essential service.
The AER must have regard to the DMO guidelines when determining the comparison price and tariff cap for each regulated tariff and the comparison price for non-regulated tariffs, as well as for the purposes of meeting the DMO objective.
Consultation on the draft DMO guidelines will replace the typical issues paper the AER has usually consulted on before making its draft DMO determination.
Once the DMO guidelines take effect, from next year, the DMO issues paper will be replaced by a more targeted request for comment paper on specific issues, if needed, rather than a broad consultation on the entire DMO methodology.
Draft DMO guidelines
On 18 September 2026 the AER published the draft DMO guidelines for consultation. We invite interested parties to provide written submissions on the draft DMO guidelines by close of business on 16 October 2026. Submissions should be emailed to dmo
aer [dot] gov [dot] au (dmo[at]aer[dot]gov[dot]au).
As part of the consultation process, the AER will engage in bilateral meetings with a wide range of stakeholders and host stakeholder workshops.