2023-24 DMO electricity prices surge

2023-24 DMO electricity price surge

The Australian Energy Regulator (AER) has today released their final determination for the 2023–24 DMO (Default Market Offer) prices. Sure, there is only a small percentage of households on the DMO offer. But, like the canary in the coal mine – when the DMO price goes up, it’s a clear signal that power prices will soon rise for everyone.

That’s because the DMO price factors in surging wholesale energy costs, network, environmental schemes and retail costs, plus the latest inflation forecasts.

Why the DMO matters

The DMO is a safety net that sets a maximum electricity price for household and small business customers, on standard retail plans, in South Australia, New South Wales and south-east Queensland. Customers who don’t choose a market offer end up on the Default Offer. The Energy Regulator sets price controls designed to provide some protection against the massive overcharging of the past. The DMO also becomes the benchmark, known as “the Reference Price”, by which the discount rates of market electricity offer must be expressed.

2023-24 DMO – here’s the damage

From 1 July 2023, residential customers on standard retail plans will see price increases of 20.8% to 23.9% without controlled load, depending on their region, and between 19.6% to 24.9% with controlled load, depending on their location. Small business customers face increases of 14.7% to 28.9%, depending on their location. The Federal and State Governments announced an Energy Bill Relief program starting July 1 2023 that will assist vulnerable households and small businesses in mitigating some of the increasing costs. Head here for details.

2023-24 DMO Electricity Prices

Distribution zoneResidentialResidential
with controlled load
Small business
without controlled load
Ausgrid (NSW)$1,827 (3,911 kWh)$2,562 (flat rate 4,813 kWh + CL 2,005 kWh)$4,999 (10,027 kWh)
Incr vs 22-23+$315 (20.8%)+$440 (20.7%)+$639 (14.7%)
Endeavour (NSW)$2,228 (4,913 kWh)$2,977 (flat rate 5,214 kWh + CL 2,206 kWh)$4,598 (10,027 kWh)
Incr vs 22-23+$392 (21.4%)+$594 (24.9%)+$816 (21.6%)
Essential (NSW)$2,527 (4,613 kWh)$2,977 (flat rate 4,613 kWh + CL 2,005 kWh)$5,761 (10,027 kWh)
Incr vs 22-23+$435 (20.8%)+$487 (19.6%)+$860 (17.5%)
Energex (SE QLD)$1,969 (4,613 kWh)$2,363 (flat rate 4,412 kWh +CL 1,905 kWh)$4,202 (10,027 kWh)
Incr vs 22-23+$349 (21.5%)+$402 (20.5%)+$756 (21.9%)
SA Power (SA)$2,279 (4,011 kWh)$2,787 (flat rate 4,212 kWh + CL 1,805 kWh)$5,849 (10,027 kWh)
Incr vs 22-23+$439 (23.9%)+$512 (22.5%)+$1,310 (28.9%)

Shop around for a better deal

AER Chair Ms Clare Savage said, “No one wants to see rising prices, and we recognise this is a difficult time. That’s why it’s important for consumers to shop around for a better deal.” Ms Savage then suggested that households “check (their) rebate and concession eligibility.”

Compare properly and save.

It’s never been more important to shop around and compare energy plans. WATTever’s comprehensive energy comparison is designed to help Australians find the best deal for energy. That’s why WATTever compares every retailer and every publicly listed energy plan – making it easy to pick the cheapest and save big time. Plus, WATTever’s comparison includes the opportunity to apply your concession. As a result, you can get a better estimate of your new bill. Compare now and start saving.

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