The Australian Energy Regulator (AER) has published its Final Determination on Default Market Offers (DMO) for the upcoming year, effective from July 1st. This annual process assesses changes in bundled tariffs for Small to Medium Enterprises (SME) and residential customers. The Default Market Offer represents the maximum price that a retailer can charge its customers.

Understanding the Default Market Offer

The Default Market Offer (DMO) is a regulatory mechanism designed to protect consumers by capping the maximum amount that energy retailers can charge for electricity. This cap helps ensure that consumers are not overcharged in an environment where energy pricing can be highly volatile. The DMO includes considerations of wholesale pricing, network charges, and other regulated costs such as those associated with the Mandatory Renewable Energy Scheme.

Wholesale Pricing Volatility and Consumer Protection

In recent years, wholesale energy prices have fluctuated significantly. Despite these challenges, the 2023 review by the AER shielded consumers from extreme pricing spikes. However, even with improvements in the wholesale market over the last 12 months, the new DMO reflects a general trend of increasing tariffs for both residential and SME customers. Some minor reductions will occur, but the overarching trend points towards higher costs.

Impact on Retail Pricing Plans

As a result of the DMO review, energy retailers will adjust their pricing plans. The retailer you currently have may no longer offer the lowest rates available. This change can significantly impact your energy costs, especially if you do not actively seek out the best deals.

What Should Consumers Do?

For residential customers or small commercial customers with fewer than five sites, it is highly recommended to visit Energy Made Easy. This free, independent government service allows you to input the details from your last invoice to find the lowest cost option for your energy needs. This service provides a clear comparison of available rates, helping you make an informed decision.

If you are unsure about the lowest cost retailer returned by the service, you are welcome to contact us. We can provide insights into the background and capabilities of these retailers, ensuring you feel confident in your choice. For customers with more than five small commercial sites, our services can offer even greater value. We have the expertise to negotiate more favorable pricing than the standard offers published by retailers, potentially leading to significant savings.

Australian Energy Regulator Final Determination on Default Market Offers
Businessman analyst working with digital finance business data graph showing technology of investment strategy for perceptive financial business decision. Digital economic analysis technology concept.

Navigating the Energy Market with Confidence

The annual adjustments to the Default Market Offers remind us of the importance of staying informed and proactive about energy choices. By understanding the factors that influence these changes and using tools like Energy Made Easy, you can ensure that you are not paying more than necessary for your electricity.


The release of the AER‘s Final Determination on Default Market Offers is crucial for all energy consumers in Australia. While the general trend indicates rising tariffs, the availability of comparison tools and expert advice can help you navigate these changes effectively. Stay informed, compare your options, and don’t hesitate to seek professional guidance to secure the best possible rates for your energy needs.


What is the Default Market Offer?

The Default Market Offer is a price cap set by the Australian Energy Regulator, representing the maximum amount that energy retailers can charge consumers for electricity.

How often is the Default Market Offer reviewed?

The Default Market Offer is reviewed annually by the Australian Energy Regulator to account for changes in wholesale pricing and other regulated charges.

Why are residential and SME tariffs increasing?

Tariffs are increasing due to various factors, including volatility in wholesale pricing and adjustments in network and regulated charges.

Where can I find the lowest cost energy options?

You can use the Energy Made Easy website, a free and independent government service, to compare energy rates and find the lowest cost options based on your latest invoice details, unless you have more than 5 small commercial sites.

What if I have more than five small commercial sites?

For businesses with more than five small commercial sites, contacting energy experts like us can help secure more favorable pricing than the standard offers published by retailers.

Can I trust the lowest cost retailer returned by the comparison tool?

If you have concerns about the lowest cost retailer, feel free to contact us for insights into their background and capabilities. We can help you make a more informed decision.