The Australian Energy Regulator (AER) has today released the draft DMO guidelines for consultation.
Once finalised, the DMO guidelines will set out the AER’s approach and methodology for annual DMO determinations, beginning with the 2027–28 DMO determination. The guidelines may be updated over time to reflect changing circumstances. They are intended to increase transparency and provide greater regulatory certainty about how the DMO is determined.
Consultation on the draft DMO guidelines replaces the issues paper the AER has previously consulted on before preparing its annual draft DMO determination.
The draft DMO guidelines largely retain the approach used for the 2026–27 DMO determination. We consider this approach is robust and consistent with the Competition and Consumer (Industry Code—Electricity Retail) Regulations 2019 (the Regulations).
We welcome stakeholder feedback on the proposed guidelines, including whether any changes to the approach are warranted.
The final DMO guidelines will be published on the AER website by 1 December 2026.
Invitation for submissions
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).
To support an informed and transparent consultation process, we prefer that all submissions are made publicly available. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be published on the AER website.
For further information about the AER's use and disclosure of information provided to it, see the AER Information Policy.
During the consultation period, stakeholders will also have opportunities to meet with AER staff, including through workshops and bilateral meetings. These meetings will provide an opportunity to discuss the proposed draft DMO guidelines and clarify specific matters that may inform a written submission.
Background
Under the Competition and Consumer (Industry Code—Electricity Retail) Regulations 2019 (the Regulations), the AER is required to publish DMO guidelines on its website by 1 December 2026.
This requirement was introduced through the Australian Government’s 2025 reforms to the DMO framework to enhance transparency and provide greater regulatory certainty about the methodology used to determine the DMO.
To inform the development of the draft DMO guidelines, AER staff undertook early consultation in July and August 2026. The AER sought preliminary views on what stakeholders expected from the DMO guidelines, as well as the principles that should guide the AER when considering circumstances that may warrant a departure from the proposed approach.
The methodology proposed in the draft guidelines was tested and refined through the extensive consultation and analysis undertaken for DMO 8. The AER proposes to retain this approach for most aspects unless strong evidence supports a change.
This approach is intended to reduce consultation burden on stakeholders and provide greater regulatory certainty.