Retail electricity prices review - Determination of default market offer prices 2020-21

  • Upcoming stakeholder forum
Sector: 
Segment: 
Status: 
Category: 
Retail pricing information
Date initiated: 
19 September 2019
Effective date: 
30 April 2020
Contact: 
General enquiries - Default Market Offer DMO@aer.gov.au

Overview

The Default Market Offer (DMO) came into effect on 1 July 2019. The DMO is a new rule that limits the price that retailers can charge electricity customers on default contracts, known as standing offer contracts.

The AER’s role is to determine the maximum price that a retailer can charge a standing offer customer each year. 

It applies to small business and residential customers on flat rate tariffs 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 aims to help customers more simply compare the price of different offers.

On 19 September 2019, we published our Position Paper as the first step in our process to determine the maximum DMO price for standing offer customers for the 2020-21 year.

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

Invitation for Submissions

Interested parties are invited to submit written responses on the issues and questions identified in this position paper by close of business Friday 18 October 2019.

Upcoming stakeholder forum

As part of the consultation process for our DMO 2020-21 Determination, we will be holding a stakeholder forum. The purpose of the forum is to discuss the key issues raised by stakeholders in response to the Position Paper in order to inform the development of our Draft Determination.

The forum will be at 10am-12.30pm on Tuesday, 26 November 2019, at the Radisson Hotel and Suites, 72 Liverpool St, Sydney.

If you would like to attend the forum, please RSVP to DMO@aer.gov.au by COB on Wednesday 23 October.

We will provide further details of the forum in the coming weeks to stakeholders who have registered their interest.