DMO energy prices to fall for both residential and small business customers
The Australian Energy Regulator (AER) has announced its final decision on the Default Market Offer (DMO) for the 2021/22 financial year - and it’s good news for both households and small businesses.
According to the regulator’s recent report, approximately 727,000 residential customers on standing offers will have their electricity prices cut by up to $116 annually, while small businesses will see a drop of $441.
As a quick recap, the DMO was introduced in July 2019 as a measure to prevent Aussies on standing offers from being charged exorbitant prices on their energy bills. The DMO acts as a price cap that retailers must abide by and is issued by the AER.
AER Chair, Clare Savage says that while the price change is good news for residents and small businesses, customers are still encouraged to shop around to ensure they’re getting the best value for money on their energy plan.
“The DMO is not designed to be the most competitive deal but rather it is a safety net for customers who don’t or can’t shop around when it comes to their electricity contract,” she encouraged.
“Most retailers have cheaper energy deals on offer, so shopping around remains the best way to get a better price.”
How much could I potentially save on my energy bill?
The DMO is only available to households on standing offers across New South Wales, South Australia and South-East Queensland. According to the AER, collectively, the latest DMO price changes could mean savings of $65 million.
|Region||2020-21 DMO prices||2021-22 DMO prices||Savings for average standing offer customer|
|New South Wales (depending on distribution zone)||$1,462- $1,960||$1,393-$1,907||$53 - $102|
If you think you could be getting a better deal on your energy bill, then make your next stop Mozo’s energy comparison tool.