Retail electricity prices review - Determination of default market offer prices

  • Accepting submissions
Sector: 
Segment: 
Status: 
Category: 
Retail pricing information
Date initiated: 
23 October 2018
Effective date: 
30 April 2019
Contact: 
General enquiries - Default Market Offer DMO@aer.gov.au

Overview

The Australian Government has indicated to the AER that it will adopt the Australian Competition and Consumer Commission’s (ACCC) recommendations 30, 49, 32 and 50 in its retail electricity price inquiry (REPI). Specifically, the Government has asked the AER to develop by 30 April 2019:

  • maximum prices for the default market offer to apply from 1 July 2019 for customers not subject to state-based price regulation.
  • a mechanism for determining a reference bill amount for each network distribution region, from which headline discounts can be calculated.

Default market offer (recommendations 30 and 49)

On 9 November 2018 we published a position paper setting out our process timing and initial views on our approach to determine the default market offer prices.

The default market offer prices will also serve as a basis for calculating the reference bill for residential customers and small businesses.

Reference bill (recommendations 32 and 50)

Development of the reference bill will run in parallel with development of the default market offer prices. Practically, it will require us to make amendments to the Retail Pricing Information Guidelines (RPIG), determine a consumption benchmark for use in the reference bill for SMEs and make any necessary changes to our Energy Made Easy website to ensure consistency of price presentation across the market.

Invitation for submissions

We released a position paper on 9 November 2018. Interested parties are invited to submit written responses on the issues and questions identified in this position paper by close of business Friday 7 December 2018. Submissions on our position paper should be sent to: DMO@aer.gov.au.

Stakeholder forum

We will be holding a public forum on our position paper in Sydney NSW in early December 2018.

If you are interested in attending the public forum, please notify us by emailing DMO@aer.gov.au before close of business on 16 November 2018. We will notify all interested stakeholders that have registered their interest of the specific details for the public forum in the coming week.