On 17 February 2021 the AER released its model for calculating DMO prices for 2021-22.
As set out in the DMO 2021-22 Draft Determination, the AER’s approach is to adjust our 2020-21 DMO price based on forecast changes to wholesale electricity, network and environment regulation costs faced by retailers. Retail costs are indexed by forecast CPI.
The model calculates the expected changes in these costs for 2021-22 for each area and customer type.
The information contained in the model is already set out in the DMO 2021-22 Draft Determination, however, we are publishing the model to provide stakeholders with additional transparency on how we propose to calculate the DMO prices for 2021-22.