AER invites consultation on 2026–27 Default Market Offer determination

The Australian Energy Regulator (AER) has today released an issues paper on the 2026–27 Default Market Offer determination, known as DMO 8.

The issues paper is the first step in our process to determine DMO 8 tariffs and prices and outlines the proposed updates and refinements to our methodology. 

We invite interested parties to make written submissions to the AER by close of business, 26 November 2025.

The DMO caps the prices a retailer can charge a standing offer customer in south-east Queensland, New South Wales and South Australia. It also serves as a reference price for market offers in these regions.

Under the current regulations, the DMO aims to prevent retailers from charging unjustifiably high prices to customers on standing offers, while maintaining market competition and participation.

On 4 November 2025, the Australian Government announced the outcomes of its review into the regulatory framework for the DMO including a package of recommended changes.

Under the announced reforms, the DMO would become a fair, trusted and reasonably priced electricity offer which reflects the essential nature of the service, and should only reflect the efficient costs to supply.

The issues paper seeks stakeholder feedback on how to best adapt our approach to suit the changes to the DMO framework and meet the new policy objective. 

The AER is also considering some changes in its approach to setting DMO 8 tariffs and prices to ensure it responds to market developments. 

The Australian Government has also commenced consultation on the Solar Sharer Offer (SSO), a new type of standing offer under the DMO framework. 

The SSO would provide all households the opportunity to access zero-cost electricity during designated time windows. 

The AER encourages stakeholders to engage in the government’s consultation process, which will inform the AER’s approach to how we calculate the SSO for DMO 8.

The DMO 8 draft determination will be released in March 2026, and the final determination will be published on 26 May 2026 (to come into effect on 1 July 2026).

Download the issues paper

We prefer that all submissions are made publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. 

For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.

Over the consultation period, we will also provide stakeholders with opportunities to meet with AER staff to discuss the issues paper broadly and clarify specific aspects or issues to inform a written submission.