The Australian Energy Regulator (AER) has published a revised final determination for the Default Market Offer for 2024-25 (DMO 6). The revision addresses a small technical error within the DMO model in calculating wholesale costs.
The amendment increases overall DMO prices to those published in May 2024 by 0.3% to 0.7% or between $13 to $15 depending on customer type and region. Prices are unchanged for Ausgrid residential customers without controlled load.
These prices will come into effect on 1 July 2024.
The amendment comes after an error was identified in the DMO model for the calculation of wholesale costs resulting in the fixed cost component for AEMO fees not being included.
The error occurred for all regions and customer types apart from Ausgrid residential customers without controlled load.
With this amendment, the final DMO determination prices still vary only slightly from the draft prices published in March 2024. Most residential and small business customers on standard retail plans will experience price reductions, with the majority of increases to be less than, or in line with, the rate of inflation.
The Competition and Consumer (Industry Code – Electricity Retail) (Updated Model Annual Usage and Total Annual Prices) Determination 2024 was registered on 31 May 2024.
An amended table is below:
Residential
DMO 6 2024-25 | % of customers | Customer type | DMO for 2024-25 | % change on previous year (nominal) | % change on previous year (real, after removing inflation) |
|---|---|---|---|---|---|
New South Wales (depending on distribution region) | 8.6% | Residential without CL | $1,810 to $2,513 | -0.2% to -0.9% | -4.0% to -4.7% |
Residential with CL | $2,509 to $2,931 | -1.5% to -5.9% | -5.3% to -9.7% | ||
South East Queensland | 9.4% | Residential without CL | $2,066 | +4.9% | +1.1% |
Residential with CL | $2,414 | +2.2% | -1.6% | ||
South Australia | 7.6% | Residential without CL | $2,230 | -2.2% | -6.0% |
Residential with CL | $2,760 | -1.0% | -4.8% |
Small Business
DMO 6 2024-25 | % of customers | Customer type | DMO for 2024-25 | % change on previous year (nominal) | % change on previous year (real, after removing inflation) |
|---|---|---|---|---|---|
New South Wales (depending on distribution region) | 18.2% | Small business without CL | $4,422 to $5,733 | -0.5% to -7.7% | -4.3% to -11.5% |
South East Queensland | 19.7% | Small business without CL | $4,261 | +1.4% | -2.4% |
South Australia | 16.7% | Small business without CL | $5,352 | -8.5% | -12.3% |
Note: Real comparisons with DMO 5 are based on RBA 2023–24 inflation forecast of 3.8% in its RBA May 2024 forecast for the 2 years ending June 2025.
CL: controlled load.
Usage is based on 365 days per annum.
The table below reflects the following changes from our 23 May determination:
Changes from published DMO 6
Distribution zone |
| Residential without CL | Residential with CL | Small Business without CL | |||
|---|---|---|---|---|---|---|---|
Ausgrid | Updated DMO 6 Price | $1,810 | $2,509 | $4,612 | |||
Change to DMO 6 price | $0 | 0.0% | +$14 | 0.6% | +$15 | 0.4% | |
Endeavour
| Updated DMO 6 Price | $2,223 | $2,801 | $4,422 | |||
Change to DMO 6 price | +$14 | 0.6% | +$14 | 0.5% | +$15 | 0.4% | |
Essential
| Updated DMO 6 Price | $2,513 | $2,931 | $5,733 | |||
Change to DMO 6 price | +$14 | 0.6% | +$13 | 0.5% | +$15 | 0.3% | |
Energex
| Updated DMO 6 Price | $2,066 | $2,414 | $4,261 | |||
Change to DMO 6 price | +$14 | 0.7% | +$14 | 0.6% | +$15 | 0.3% | |
SAPN
| Updated DMO 6 Price | $2,230 | $2,760 | $5,352 | |||
Change to DMO 6 price | +$14 | 0.6% | +$14 | 0.5% | +$15 | 0.3% | |
Click here for the final determination for the Default Market Offer for 2024-25 (DMO 6).