AER commences consultation on 2021-22 DMO determination

lightbulb, DMO

The Australian Energy Regulator (AER) has released a position paper on the 2021-22 Default Market Offer (DMO) price determination for consultation.

The DMO price is the maximum price a retailer can charge a standing offer customer in south-east Queensland, New South Wales and South Australia.

The intention of the DMO is to prevent retailers charging unjustifiably high standing offer prices, while allowing them to recover their costs of providing services and allowing for competition, innovation and market participation.

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The DMO applies to residential customers on flat rate and time of use tariffs, and small business customers on flat rate tariffs.

The paper is the first step in the process in setting the 2021-22 DMO prices. The AER is seeking views on a number of aspects of the proposed pricing methodology to set DMO prices.

Feedback from this consultation will inform the development of the draft DMO prices, which will be released in early 2021 for consultation. The AER’s final 2021-22 DMO determination will be published by May 2021 and come into effect on July 1, 2021.

Stakeholders are invited to an online forum at 2pm on Thursday, October 29, 2020. Stakeholders can register their attendance before October 26, 2020 here.