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Submission to the AER on the third Default Market Offer


Energy Consumers Australia

We appreciate the opportunity to comment on the Australian Energy Regulator’s (AER) Default Market Offer prices 2021-22 Position Paper.

In this current climate the role that the Default Market Offer (DMO) plays as a maximum price a retailer can charge consumers on standing offers – who are not active in the retail electricity market – is more important than ever as we look to support energy consumers managing their bills.

Since its introduction, we are starting to see positive market impacts with lower standing offer prices, fewer conditional discounts on market offers, and the removal of many market offers that were priced above the DMO. The third DMO price determination offers an opportunity to build on this foundation and could continue to build up consumer trust and confidence in the market.

We do have some comments of note for the AER including a lack of transparency on retail costs, all of which can be read in our submission here.

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