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What is the Default Market Offer?

The DMO might not have the powers of Superman, but it still could save your day. For those on standing offers it’s a safety net to help you avoid paying unnecessarily high prices for your electricity — it’s a bill cap essentially.   

All Energy Retailers must include details on how their market offers compare to the DMO, so if you’re on a market offer the DMO is a convenient reference point to see if their plans are as good as their marketing departments claim.  

It’s the Australian Energy Regulator’s (AER) domain to figure out the DMO for each financial year. The aim is to come to a price that’s fair for consumers and retailers alike.  

There are a few things to keep in mind when it comes to the DMO. For starters, it’s only in effect in NSW, SA and South East QLD. For Victorians, don’t worry, you’ve got your own called the Victorian Default Offer (or VDO). It’s also only an option for homes and small businesses and their electricity use; gas isn’t part of the equation. You’re in the clear though if you’ve got solar and get a feed-in tariff, you can still pick the DMO as your standing offer.