Default market offer prices 2023–24

Sector: 
Segment: 
Status: 
Category: 
Retail pricing information
Date completed: 
26 May 2023
Date initiated: 
3 November 2022
Effective date: 
1 July 2023
Contact: 
AER General Inquiries AERInquiry@aer.gov.au
AER reference: 
64687

Overview

The Default market offer (DMO) came into effect on 1 July 2019. The DMO is a maximum price that retailers can charge electricity customers on default contracts known as standing offer contracts. The AER’s role is to determine the DMO price each year.

The DMO applies to small business and residential customers in areas where there is no other retail price regulation: South Australia, New South Wales and south-east Queensland. The DMO price for each area also acts as a ‘reference price’ for residential and small business offers in that area. When advertising or promoting offer pricing, retailers must show the price of their offer in comparison to the DMO/reference price. This helps customers more simply compare the price of different offers.

The Competition and Consumer (Industry Code – Electricity Retail) Regulations 2019 sets out the legislative framework for the DMO.

Issues paper

On 3 November 2022 we published our issues paper on the methodology to be adopted for the 2023–24 default market offer price determination. Consultation is now open and we are seeking written submissions on the key issues and questions raised in this issues paper by 30 November 2022.