The Default Market Offer (DMO), first introduced in 2019 by the Australian Energy Regulator (AER), is a key piece of consumer protection in Australia’s retail electricity sector. Designed to cap excessive pricing on standing offers, the DMO provides a transparent benchmark to help customers compare plans and avoid paying the so-called “loyalty tax.”
On 26 May 2025, the AER released its Final Determination for DMO 2025–26, with new prices taking effect from 1 July 2025. The latest update brings a mix of modest and sharp price increases across NSW, SE QLD, and SA.
What is the DMO, and Why Was It Created?
The DMO:
- Sets maximum prices for electricity standing offers
- Applies to residential and small business customers who haven’t actively chosen a market deal
- Acts as a reference price to make market offers easier to compare
- Was introduced to reduce unfair pricing and encourage switching
It’s not a discounted rate; rather, it reflects a reasonable price ceiling based on network charges, wholesale costs, environmental schemes, and retail margins.
DMO 2025–26: Key Price Changes
The AER’s latest determination outlines the following regional impacts:
For Residential Customers:
- NSW (Ausgrid): +9.4%
- South-East QLD: +3.7%
- South Australia: +2.3%
For Small Businesses:
- Increases range from 0.8% to 8.5% depending on the region
These increases are attributed to rising wholesale electricity prices, network costs, and retail operating expenses.
Download the full Final Determination PDF (26 May 2025):
Click here to access the official document
How Retailers Can Stay Ahead – Enter CompliX and Planify
With compliance tightening and pricing scrutiny increasing, energy retailers and embedded operators are under more pressure than ever to ensure their offers are DMO-compliant and consumer-friendly.
That’s where CompliX and Planify come in — two purpose-built digital tools designed for the evolving regulatory and retail environment.
CompliX: Compliance Made for Energy
CompliX is a regulatory compliance platform tailored for energy retailers, networks, and embedded operators. It simplifies and automates:
- Tracking of DMO updates and price caps
- Regulatory reporting and documentation
- Calendar-based reminders for AER and ESC obligations
Retailer Benefit:
With CompliX, you have peace of mind that every compliance requirement is captured, tracked, and actioned before deadlines.
Planify: Plan Benchmarking & Price Transparency
Planify is a smart pricing and onboarding engine that enables retailers to:
- Design and publish market offers clearly benchmarked against the DMO
- Auto-check compliance against AER reference prices
- Enable customers to easily compare and switch to plans below the DMO
Retailer Benefit:
Planify helps build trust with customers by showing exactly how plans compare to the DMO and makes switching seamless.
🧭 Supporting Better Outcomes for All
Platform | Purpose | Key Benefits |
CompliX | Compliance tracking | Reduces risk, automates obligations, streamlines internal audits |
Planify | Plan comparison & onboarding | Improves transparency, supports fair pricing, boosts conversions |
Access the Official AER Determination
Want the full data and cost breakdowns?
Final Thought
The DMO continues to serve as a critical safeguard for customers, but it also sets clear expectations for energy retailers. With prices rising and regulatory scrutiny growing, platforms like CompliX and Planify offer the tools retailers need to stay compliant, competitive, and customer-focused in 2025 and beyond.
