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:

  • default market offer prices, which are to apply from 1 July 2019 for standing offer customers on relevant tariffs, in network distribution regions 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.

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.

Invitation for submissions

We released a draft determination of default market offer prices on 23 February 2019 and invite written submissions. Submissions close on Wednesday 20 March 2019.

Invitation for submissions

On 15 March 2019, we published the draft legislative instrument to accompany the draft Default Market Offer (DMO) Prices Determination for consultation. Submissions close on Monday 25 March 2019.

Stakeholder forum

We held a public forum on our DMO position paper in Sydney on 5 December 2018.