Understanding the Default Market Offer
Default Market Offer: The basics
What is the Default Market Offer (DMO) for electricity?
The DMO is a comparison price set by the Australian Energy Regulator (AER) each year. It’s designed to be a reasonably priced energy offer that small businesses and residential customers can choose to be on as a safety net if they don’t want to shop around and compare options within the competitive energy market.
If you live in an area where the DMO is available, retailers will use the comparison price set by the AER as a benchmark for their own market offers, and the price difference will be listed as a percentage (e.g. ‘this offer is 12% less than the comparison price set by the AER’).
Why was the DMO introduced?
The DMO was introduced to ensure Australians don’t pay an unreasonable amount for their electricity and is the most electricity retailers can charge you on a standing offer. It also serves as a comparison price set by the Australian Energy Regulator (AER) for retailers when they set their own competitive market offers. Essentially, the DMO serves to make sure you, the customer, aren’t overpaying for your electricity while also ensuring energy retailers are able to maintain their business.
How much does the Default Market Offer (DMO) cost?
The DMO price determination is updated yearly, with the final decision going into effect on 1 July each year to correctly reflect the current electricity market conditions. While the exact amount you’ll be charged will vary based on your electricity use, your distribution zone and the type of tariff you’re on, the average yearly electricity bill while on the DMO for 2026-2027 is listed below:
| Distribution zone | Residential, flat rate tariffs | Residential, time of use tariffs |
|---|---|---|
| Ausgrid | $1,899 (3,900 kWh annual usage) | $1,893 (3,900 kWh annual usage) |
| Endeavour Energy | $2,328 (4,900 kWh annual usage) | $2,320 (4,900 kWh annual usage) |
| Essential Energy | $2,604 (4,600 kWh annual usage) | $2,530 (4,600 kWh annual usage) |
| Energex | $1,988 (4,600 kWh annual usage) | $1,914 (4,600 kWh annual usage) |
| SA Power Networks | $2,334 (4,000 kWh annual usage) | $2,276 (4,000 kWh annual usage) |
| Source: Australian Energy Regulator. 2026-27 Default market offer: Final determination. Published May 2026. Accessed June 2026. | ||
Understanding the Default Market Offer
Is the DMO available to everyone?
The DMO is only available to those living in unregulated areas of the National Electricity Market (NEM). This includes:
- South East Queensland (SE QLD)
- New South Wales (NSW)
- South Australia (SA).
There is no DMO in Victoria (VIC), however, the Victorian Default Offer (VDO) will be available to you instead, which is set by the Essential Services Commission (ESC). The DMO is also not available in the ACT (but they do have similar energy regulation in place, known as the reference price), or in the Northern Territory, Tasmania or Western Australia, where electricity is more regulated.
If you live in a home with an embedded network, the DMO also won’t be available to you. Instead, you’ll be receiving your electricity through your embedded network manager that on-sells electricity to you after purchasing it from an electricity retailer. Examples of an embedded network are an apartment block, shopping centre or retirement village.
DMO vs market offer: What’s the difference?
The DMO is a government-regulated comparison price set by the Australian Energy Regulator (AER), whereas market offers are set by individual retailers and are typically cheaper than the DMO. This is because, unlike the DMO, market offers may also have incentives, discounts and other perks.
Typically, you’ll be on the DMO only if you chose not to engage in the electricity market by comparing the options on the market and shopping around, or if the benefit period of your market offer expired and you were rolled on to your retailer’s standing offer.
How will I know if I’m on a great electricity plan?
To know if you’re on a great electricity plan, you’ll need to consider your usage and budget and then compare options available from a range of providers.
In terms of cost, your retailer is obliged to tell you each quarter whether they have a cheaper option than the electricity plan that you’re currently on. This may benefit you if you haven’t changed electricity plans in more than a year, as your rates have probably changed with the loss of discounts or perks.
However, the best way to help lower your power bills is to compare plans yourself. By shopping around, you can compare different deals and discounts to find a plan that best suits the energy needs of you and your household.
Meet our energy expert, Meredith O’Brien
As the Head of Energy at Compare the Market, Meredith O’Brien believes in educating Australian customers about the ever-changing gas and electricity market so they can adjust their energy usage habits and get the most out of their energy plans.
Meredith has seven years of experience within the energy industry, following 15 years in financial services. Meredith is a dedicated customer advocate who is passionate about empowering Australians to find the right products to suit their needs by removing the confusion from comparing.
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1 Australian Energy Regular (AER) – Australian Government. 2024-2025 Default market offer prices: Final determination. Published 3 June 2024. Accessed November 2024.