Summary
The Default Market Offer (DMO) is the maximum price electricity providers can charge customers in NSW, the ACT, South Australia and parts of Queensland who are on a ‘standing offer' for electricity (a contract with regulated terms).
It’s also called the DMO reference price because it’s a cost benchmark that customers can use to compare offers (also called electricity plans).
The relevant regulator reviews and sets the DMO each year. It’s set by the government in the ACT or the Australian Energy Regulator in certain other states. If you're in Victoria, see the Victorian Default Offer article.
More info
What is the DMO?
How is the DMO calculated?
The DMO is calculated by setting a maximum bill amount per tariff type. For some tariffs, the DMO also sets a usage profile. Retailers’ standing offers must not exceed the annual bill amount set by the DMO.
How to use the DMO to assess electricity offers
When we present offers for electricity, we'll let you know how the offer (or electricity plan) compares to the DMO: We’ll present:
the comparison as a percentage amount that’s more or less than the DMO, or a statement saying the offer is equal to the DMO reference price
an estimated yearly cost of the electricity plan – this calculation is based on a set electricity use for a household or business, on a particular tariff type, in a particular distribution area. (Keep in mind, the amount you’ll actually pay depends on how much electricity you use.)
When you compare plans for your supply address, you'll see the DMO in action.
See also
