The Default Market Offer (DMO) is a critical protection for consumers and important tool for shaping the retail energy market. It should provide an affordable choice for anyone who needs it, while working as a tool to build trust and implement equity and fairness for all. Over the years since its implementation it has gradually been improved.
This process results from a review of the DMO we advocated for, the review recommended a renewed consumer-focused objective and this process is now opportunity to genuinely improve outcomes for consumers.
That’s why we continued to prosecute the case for ambitious change in our response to the Australian Energy Regulator (AER) Default market offer 2026-27 Issues paper. We detailed opportunities for genuine reform to the DMO that deliver a fairer, trusted and efficiently priced electricity option putting people first, including:
- The ongoing issues preventing the DMO from reaching its new consumer-focused objective.
- The need to ensure the DMO price reflects only the essential and efficient costs of supplying the service.
- That setting a DMO signalling good value in the market incentivises retailers to offer better value to consumers.
- Adopting a principle of ‘universal design’ in setting the DMO that meets the needs of all in the community.
What’s next?
The draft determination will be delivered in Q1 2026, and we will continue to engage in this process as part of our wider advocacy for more meaningful and effective energy market regulation and consumer protections.
Read more from JEC on Direct Market Offer (DMO) and our views on electricity pricing, including designing more equitable network tariffs.
