On 2 March 2020 the AER released its model for calculating DMO prices for 2020-21.
As set out in the DMO 2020-21 Draft Determination, the AER’s approach is to adjust our 2019-20 DMO price based on forecast changes to wholesale electricity, network and environment regulation costs faced by retailers. Retail costs are indexed by CPI.
The model calculates the expected changes in these costs for 2020-21 for each area and customer type.
The information contained in the model is already set out in the DMO 2020-21 Draft Determination, however, we are publishing the model to provide stakeholders with additional transparency on how we propose to calculate the DMO prices for 2020-21.
We invited interested stakeholders to comment on the model up to 17 March 2020. We did not receive any submissions.