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The Default Market Offer
The Default Market Offer
Written by
Rachel Gregg
Edited by
Ellie Garran
Reviewed by
Julia PaszkaCompare electricity & gas plans the easy way
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What is the Default Market Offer (DMO)?
Long story short
The DMO is a comparison price set by the Australian Energy Regulator
It limits what retailers can charge on electricity plans and works as a benchmarking tool to compare market offers.
It acts as a safety net rather than being the cheapest option
While the DMO prevents overcharging, some market offers can come in lower, so comparing plans could help you save more.
The DMO varies by location and usage
DMO prices are reviewed and set each year and differ by distributor.
What is the Default Market Offer (DMO)?
The DMO is a comparison price set by the Australian Energy Regulator (AER) for electricity plans. It’s the maximum price that energy retailers can charge for standing offers; it’s reviewed and set each year by 1 July. Standing offers are default energy plans for those who don’t want to or can’t choose from a more competitive market plan (ones that come with discounts and lower pricing). All energy retailers must include details about how their market offers compare to the DMO, so if you’re looking at market offers, the DMO is a convenient benchmarking tool to see if they’re as good as they seem.
There are a few things to keep in mind when it comes to the DMO. For starters, it’s only in effect in New South Wales, South Australia and South East Queensland. For Victorians, don’t worry, you’ve got your own version, called the Victorian Default Offer. The DMO is also only an option for electricity plans for homes and small businesses; gas isn’t part of the equation. And it includes a new opt-in electricity plan, the Solar Sharer Offer, which includes 3 hours of free electricity in the middle of the day.
When did the Default Market Offer (DMO) start?
The DMO first came into effect on 1 July 2019. It was introduced by the Australian Energy Regulator and the Australian Government to limit the price differences between standing and market offers. Before the DMO, many energy customers on standing offers were paying a lot more on average than customers on market offers, which is the key issue the DMO aimed to address through its introduction.
How is the Default Market Offer (DMO) calculated?
The Australian Energy Regulator (AER) calculates the DMO by looking at wholesale, network, environmental and retail costs and retail margins across different distributors for New South Wales, South Australia and South East Queensland. Within the final 2026–27 DMO price for residents on a flat rate, the average final figure across distributors was made up of 35% wholesale costs, 42% network charges, 2% environmental costs, 15% retail costs and 6% retail margins.1AER – Default Market Offer prices 2026-27: Final determination, p135 By looking at these costs across different distributors, the AER can also factor in the differing energy needs of different state climates to help keep things equal.
Note: These figures reflect average cost percentages that make up the 2026–27 DMO, based on the AER’s DMO 8 final determination and rounded where appropriate. Internal iSelect calculations were applied to this data. Data retrieved 17 June 2026.
How much is the Default Market Offer (DMO)?
The 2026–27 DMO flat-rate price ranges from around $1,900 for an estimated annual usage of 3,900 kilowatt hours (kWh) to $2,600 for an estimated usage of 4,600 kWh, depending on the distributor. For those looking to jump on the new Solar Sharer Offer, prices are quite similar, ranging from around $1,900 for an estimated usage of 4,600 kWh to $2,500 for the same estimated usage. The exact price for homes on standing offers will depend on where you live and how much energy you use.
Since the electricity market fluctuates, the DMO changes each year to reflect that. After several years of rising energy costs, the 2026–27 update brings some relief, with lower comparison prices in some states. This may flow through to your own home’s bills, but it’s not always guaranteed.
The Solar Sharer Offer has been introduced as a way to help lower energy costs, with 3 hours of free power in the middle of the day being offered to residential customers in DMO regions. This means customers who shift their usage to this period can get up to 24 kWh of free electricity each day.
The DMO might strike you as a good deal depending on your usage and location, but it’s worth remembering that it’s not always the cheapest. Some competitive market contracts might cost less than DMO, so it’s worth comparing plans before you sign on. If you want a hand with comparing all your options, iSelect can help.
DMO final costs for 2026–27
| Distributor | Estimated annual usage | Residential flat rate | Residential Solar Sharer |
| Ausgrid | 3,900 kWh | $1,899 | $1,893 |
| Endeavour Energy | 4,900 kWh | $2,328 | $2,320 |
| Essential Energy | 4,600 kWh | $2,604 | $2,530 |
| Energex | 4,600 kWh | $1,988 | $1,914 |
| SA Power Networks | 4,600 kWh | $2,334 | $2,276 |
Note: These figures reflect 2026–27 DMO comparison prices, based on the AER’s DMO 8 final determination. Actual costs may vary depending on location, tariff type and energy usage. Data retrieved 17 June 2026.
What’s the difference between the Default Market Offer (DMO) and other market offers?
The DMO is a comparison price set by the Australian Energy Regulator, while market offers are competitive energy plans set by retailers that can include discounts and different tariff options. The DMO is also a price cap for standing offer contracts, which you could be on if there are no market plans available to you, if you don’t want a competitive plan or if your existing market plan ends. Market offers usually stand out for their competitive prices, which are usually lower than standing offers, and can come with added perks or more flexibility for your home’s usage needs through controlled load or time-of-use tariffs. All retailers need to advertise how their market plans compare to the DMO, to help you compare plans.
So how does the DMO fit into it all? Well, like with market offers, electricity retailers can name a price for standing offer plans. However, the DMO is a benchmarking tool used to set the maximum that retailers can charge for standing offers. You shouldn’t see a standing offer plan that comes in at more than the DMO price determination.
Depending on what you’re looking for in an electricity plan, the DMO might be right up your alley with static prices for the year, or you could find more joy in a flexible market offer.
Where can I find and compare Electricity Plans?
If you’re keen to see whether there’s a deal that leaves the Default Market Offer in the dust, you can compare from a range of electricity plans with iSelect. It only takes a few minutes with our online comparison tool or you can give our comparison experts a call on 1800 664 532.
Get started on comparing energy plans today!
Save time and effort by comparing a range of energy plans with iSelect
iSelect does not compare all energy providers or plans in the market. The availability of plans may change from time to time, depending on who iSelect’s providers are and what plans they make available to iSelect. Not all plans made available from iSelect providers may be compared by iSelect either due to commercial arrangements, area or availability, so not all plans or providers compared by iSelect will be available to all customers. Some plans and special offers are available only from iSelect’s contact centre or website. Energy plans are available only for properties located in eligible areas of Victoria, New South Wales, South East Queensland, South Australia and ACT. Click here to view iSelect’s range of providers.