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Submission to the AER on the 2022-23 Determination of the Default Market Offer


Energy Consumers Australia

We welcome the opportunity to comment on the Australian Energy Regulator (AER)’s Options Paper on the methodology to be adopted for the 2022-23 determination of the Default Market Offer (DMO). We believe the introduction of the DMO has impacted consumers positively however there are opportunities for improvement that should be considered when determining DMO4.

We believe a bottom-up approach is most likely to achieve the desired outcomes for consumers. Any changes should provide:

  • Low prices without compromising competition,
  • Transparency of retail costs and an amendment to information asymmetry,
  • Assurance that retail margins are consistent with an efficient and effective competitive market structure
  • Price stability

Ultimately the correct approach is the one that delivers the best price for consumers and attempts to resolve the issues outlined in this submission. Read our comments on the proposed approach in our submission here.

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