The Default Market Offer is the annual maximum total bill amount (called a reference price) energy companies can charge for the ‘standing offer’ prices based on a set average usage amount. It’s a reference price designed to make it easier for customers to compare energy plans across different providers.

Energy retailers are free to set supply and usage charges as long as the total bill is equal or less than the Default Market Offer reference price.

The Default Market Offer can be offered to eligible residential and small business customers in New South Wales, South Australia and south-east Queensland from 1 July 2019.

The Default Market Offer will affect everyone differently. If you’re on a Basic Home electricity plan with a flat or controlled load rate or on a Basic Business electricity plan with a flat rate, your rates will have been changed to reflect the Default Market Offer rates for your area from 1 July 2019.

We will have contacted you if your plan rates have changed to Default Market Offer rates.

The Default Market Offer has been introduced by the Federal government to reduce standing offer prices. It’s a reference price designed to make it easier for consumers and businesses to compare energy plans across different providers. It’s intended as a safety net for residential and small business customers in New South Wales, South Australia and south-east Queensland, who don’t have the time or access to compare market offers provided by electricity retailers.

The Default Market Offer is the annual total reference price. It will make it easier for consumers to compare ‘apples with apples’ between different energy retailer price offers for electricity.

The Australian Energy Regulator has determined the average annual usage level for each electricity distribution zone, which they will review annually.

These amounts have been determined for the following customers:

1. Residential customers with flat tariffs

2. Residential customers with controlled load

3. Small business customers with flat tariffs

The reference price has been calculated for each electricity zone based on the average usage.

It’s a tariff where you’re charged the same rate for electricity throughout the day and night. There is no distinction made between peak and off-peak periods like time of use tariffs.

A flat-rate tariff is usually lower than peak but higher than off-peak and shoulder rates.

What is a time of use tariff?

With a time of use tariff, different usage rates are charged for the electricity you use at different times: off-peak, shoulder and peak.

Off-peak – charged when the electricity network has low usage, such as overnight.

Shoulder – a usage rate that sits between peak and controlled load times. Shoulder rates are usually a bit cheaper than peak rates and are available in most states. For example, shoulder times are 7.00 am to 3.00 pm and 9.00 pm to 10.00 pm on weekdays, as well as 7.00 am to 10.00 pm on weekends. These times may differ between states.

Peak - charged when the electricity network has high usage, such as in the evening or on weekdays.

Controlled load electricity refers to electricity being used by a stand-alone item, like electric hot water, under floor or slab heating or irritation pumps. Controlled load is recorded by a separate meter and can be billed at an off-peak rate.

The Default Market Offer (or DMO) annual maximum reference prices are set by the Australian Energy Regulator (AER) for each electricity distribution zone in New South Wales, South Australia and south-east Queensland. They’ll also review these reference prices annually.

You can read more information about how the AER sets the Default Market Offer price by going to the AER website.

A Basic Home electricity plan with a flat or controlled load rate or on a Basic Business electricity plan with a flat rate in New South Wales, South Australia and south-east Queensland.

The Default Market Offer does not apply to:

- Residential or small business electricity customers on a market plan, which is an energy plan typically with a benefit or incentive (e.g. a discount or a credit to your bill) for a fixed amount of time.

- Gas accounts including bulk hot water

- Time of use tariffs

- Small business electricity controlled load#

- Solar PV#

- Embedded networks

- Prepayment meter tariff

- Basic Home or Basic Business electricity plans in Victoria or the Australian Capital Territory.

# The Federal Government intends to expand the Default Market Offer scope to include customers with solar PV tariffs from 1 July 2020.

No. The Default Market Offer does not apply to you.

Why? In your area, regulated prices are already available under state regulatory arrangements.

If you’re on a Basic Home electricity plan with flat or controlled load rate or on a Basic Business electricity plan with a flat rate, your price will automatically change to reflect the Default Market Offer rates for your area from 1 July 2019.

We’ll contact you to let you know if your plan rates change to Default Market Offer rates.

Eligible customers can access the Default Market Offer by signing up to our Default Market Offer Home Flat or Default Market Offer Business plans. However, the Default Market Offer rates are not applied to all rate types and won’t be our best-priced plan. If you want to find out what your best options are, we can discuss them with you.