The Justice and Equity Centre led a joint consumer and community response to Commonwealth DCCEEW’s consultation paper on potential reforms to the Default Market Offer (DMO). The submission was co-signed by the Australian Council of Social Service (ACOSS), Combined Pensioners & Superannuants Association (CPSA), Energetic Communities and the South Australian Council of Social Service (SACOSS). Having advocated for a holistic review of the DMO for the past several years, our organisations welcomed the opportunity to engage with this consultation.
The DMO in its current form does not work for consumers. It contributes to inefficient, unfair prices in the retail energy market, both for standing offer and market offer consumers.
A reformed DMO that explicitly prioritises the protection of consumers and better outcomes for consumers will have considerable positive impacts on energy affordability.
We have long assessed the current purpose and objectives of the DMO – as well as its implementation – as misaligned with the needs of consumers, their expectations and a mature understanding of consumer disadvantage and vulnerability in essential service delivery.
Our submission provides discussion on:
- A range of key recommendations;
- The case for reform of the DMO;
- The purpose and role of the DMO;
- Current experiences of consumers in the retail energy market; and
- The need for a simple, affordable and fair price in the retail energy market
