​​Consultation on reforms to the Default Market Offer​

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Overview

The consultation is now closed.

Thank you to everyone who proivded feedback on potential reforms to the Default Market Offer (DMO).

Outcomes paper

Following the consideration of stakeholder feedback, the department has produced an outcomes paper that sets out a comprehensive package of reforms to strengthen the DMO framework and improve protections for small customers.

Recommended reforms to the DMO framework, announced on 4 November 2025, enhance the DMO as a protection measure for consumers who are disengaged or unwilling to participate in the market.

The reforms establish a framework that ensures consumers on a standing offer pay a fair price that does not build in additional costs over the efficient cost to electricity retailers for providing an essential service.

Specifically, the reforms:

introduce a new guiding DMO objective focussed on protecting small customers on standing offers and small customers in embedded networks
require the determination of the DMO to be based on the efficient costs of serving those customers and cap the prices payable by those customers
require the Australian Energy Regulator (AER) to determine a tariff cap for common standing offer tariff types to improve consumer price protections
maintain the role of the DMO as reference price to help consumers compare electricity plans more easily
introduce a Solar Sharer Offer (SSO) standing offer.

DMO Review Outcomes - 2025 Reforms to the Default Market Offer [PDF 1.1MB]

DMO Review Outcomes - 2025 Reforms to the Default Market Offer [DOCX 639KB]