On 13 March 2025 the AER released its draft determination for the Default market offer prices for 2025–26 (DMO 7).

ACIL Allen supported us in the design of a forecasting approach for wholesale and environmental costs. We also instructed ACIL Allen to produce a long run marginal cost (LRMC) estimate for South Australia to provide a comparative data point against our current forecasting approach for wholesale costs. 

The report Wholesale energy and environment cost estimates for DMO 7 draft determination by ACIL Allen was published alongside the draft determination on 13 March 2025.

The report LRMC estimates for South Australia by ACIL Allen was also published alongside the draft determination on 13 March 2025.

On 13 March 2025 the AER released its model for calculating DMO prices for 2025–26.

As set out in the DMO 7 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 2025–26 for each area and customer type.

The information contained in the model is set out in the DMO 7 draft determination, and we have published the model to provide stakeholders with additional transparency on how we propose to calculate the DMO prices for 2025–26.

We requested AEMO provide the interval meter data used to simulate the load profiles and have published this data for the first time as supporting information alongside the DMO 7 draft determination. The data provided is at 30-minute intervals with both customer types aggregated (residential and small business), by DMO region. This provides transparency regarding a key input to our wholesale energy cost modelling, allowing stakeholders to consider inputs in more detail.

We have also published the DMO 7 assumed patterns of supply in Excel format.

As part of the consultation process for the DMO 7 draft determination we will host stakeholder engagement activities following publication on 13 March 2025. These will provide stakeholders opportunities to clarify aspects of the draft determination and inform written submissions.

We invite interested parties to make submissions on the DMO 7 draft determination by close of business Thursday, 3 April 2025. 

Submissions should be emailed to: DMOaer [dot] gov [dot] au (DMO[at]aer[dot]gov[dot]au)

Alternatively, you may mail submissions to:

Natalie Elkins
General Manager, Market Performance Branch
Australian Energy Regulator
Level 17, 2 Lonsdale Street
Melbourne VIC 3000

Please ensure submissions are in PDF, Microsoft Word or another text readable document format.

We prefer that all views and comments be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on our website. For further information regarding our use and disclosure of information provided to us, see the ACCC/AER Information Policy.

We request parties wishing to submit confidential information:

• clearly identify the information that is the subject of the confidentiality claim
• provide a non-confidential version of the submission in a form suitable for publication.