AER - Draft determination - Default market offer 2026–27 - Cost assessment model

On 19 March 2026 the AER released its model for calculating DMO tariff caps and annual prices for 2026−27.

As set out in the DMO 8 draft determination, the AER uses a cost build-up approach to calculate the DMO tariff caps, taking into account forecast costs for wholesale electricity, network, environmental and retail costs, and applying a retail margin. We have assigned recovery of fixed costs to the daily supply charge and recovery of variable costs to the usage charges in the DMO tariffs.

The information contained in the model is set out in the DMO 8 draft determination, and we have published the model to provide stakeholders with additional transparency on how we propose to calculate the DMO tariff caps and annual prices for 2026–27.