The Default Market Offer (DMO) is an electricity price set by the Australian Energy Regulator. It is the maximum price that retailers can charge residential and small business customers on a standing offer contract for electricity.
It applies to households and small businesses in South Australia, New South Wales, and South East Queensland.
The DMO protects people who are unable, or choose not, to sign up to a more competitive market retail energy plan. Every year on 1 July, the DMO annual price is locked in for 12 months.
How it protects you
The DMO sets the prices a retailer can charge a standing offer customer. It also serves as a comparison price to compare against market retail energy plans for electricity. Retailers must show how their plans compare to the DMO in all advertising and promotion.
The DMO may not be the cheapest plan available. Consumers are encouraged to shop around for better deals. Currently, less than 10% of households and only about 15% of small businesses are on the DMO.
How to tell if you are on a standing offer
A standing offer is the default energy plan a retailer must provide if a customer hasn’t chosen another option.
A market offer is a competitive energy plan designed by retailers that often include different prices, discounts or features, and customers can choose between them to find a deal that suits their needs.
Customers might be on a standing offer if:
- they have never switched to a retailer’s market offer contract
- they move to premises and are supplied by the existing retailer but are yet to make contact with a retailer.
You should check with your retailer to find out if you are on a standing offer or a market offer.
How to compare prices
Energy Made Easy (EME) is a free, trusted and independent website that can help you access the best energy contract offer for your circumstances.
Energy retailers are required to display all their generally available energy plans on EME, so you can compare energy deals from all retailers in the market to help you make an informed choice.
If the standing offer DMO price is cheaper than the current electricity plan you are on, you can ask your retailer to transfer you to the standing offer. Your retailer is required to do this for you.
