On 19 March 2024 the AER released its DMO 6 draft determination. On 18 April 2024 the AER provided the DMO 6 assumed patterns of consumption in Excel format.

For DMO 6 we instructed ACIL Allen Consulting to support us in the design of a forecasting approach for wholesale and environmental costs and to provide an expert report on approaches for a retail margin. We also instructed ACIL Allen Consulting to produce a long run marginal cost estimate for South Australia for use as a comparative data point against our current forecasting approach for wholesale costs. 

The report Default market offer: Wholesale energy and environmental costs estimates for DMO 6 draft determination by ACIL Allen Consulting was published alongside the draft determination on 19 March 2024.

The report Default Market Offer: LRMC estimates for South Australia by ACIL Allen Consulting was published alongside the draft determination on 19 March 2024.

The report Default Market Offer: Methodologies for estimating the retail allowance and estimated values by ACIL Allen Consulting was published alongside the draft determination on 19 March 2024.

On 19 March 2024 the AER released its model for calculating DMO prices for 2024–25.

As set out in the DMO 6 draft determination, the AER’s approach is to use a cost build-up approach to calculate the DMO price, taking into account forecast costs for wholesale electricity, network, environment and retail costs. The model calculates the expected changes in these costs for 2024–25 for each area and customer type.

The information contained in the model is set out in the DMO 6 draft determination, and we have published the model to provide stakeholders with additional transparency on how we propose to calculate the DMO prices for 2024–25.

As part of the consultation process for its DMO 6 draft determination the AER will host specific stakeholder engagement activities following publication on 19 March 2024. Stakeholders will be provided with opportunities to meet with AER staff to clarify aspects of the draft determination to inform a written submission.

We invited parties to make written submissions on the draft determination. Submissions closed on 9 April 2024. 16 written submissions were received and 15 were published. The 16th submission was provided to the AER confidentially.