The Federal Government has opened consultation on its proposed reforms to the default market offer (DMO), aimed at ensuring customers on standing offers can access a fair electricity price.
Currently, the DMO sets a price cap on how much energy retailers can charge households and small businesses on standing offer contracts in New South Wales, South Australia and south-east Queensland. It also acts as a reference price so customers can easily compare different electricity plans.
The reformed DMO will still act as the maximum price retailers can charge customers on standing offers, however, the reforms will aim to ensure those customers pay a ‘fair and efficient’ price that only compensates retailers for the costs of supplying electricity.
The Federal Government said this will bring the DMO closer in line with other areas like Victoria. In 2025, Victorian electricity bill increases were smaller than those in DMO regions.
Another focus will be helping to set up the energy market to better reflect Australia’s changing energy grid, including better use of rooftop solar energy and batteries.
The changes to the DMO are due to come into effect in 2026 and consultation on the reforms is now open.
The Federal Government has released a consultation paper on the proposed reforms and is inviting feedback, with consultation open until 18 July 2025.
