Your energy just got easier
New regulations are changing how retailers offer electricity. We’re also doing our bit to make energy simpler. And more affordable. From plans with rates that are fixed for 2 years, to tools that help you monitor your usage and a choice of ways to pay your bill.
What is the DMO and what does it mean for you?
The Default Market Offer (DMO) is a government initiative to make electricity prices more affordable and easier to understand. The DMO represents a benchmark, or reference price, for setting and explaining prices to a wide range of customers. Learn more about what this means for you.
Why it pays to be with AGL.
At AGL, we offer plans with rates fixed for up to 2 years to give you certainty. Discover more reasons to be with us.
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Check out our FAQs below, or get in touch with us if you have any questions.
We want to make sure you’re on the best plan for you.
From 1 July 2019, the Australian Energy Regulator (AER) will set regulated price caps for electricity customers on most ‘standing offers’ in NSW, South Australia and south-east Queensland. This is known as the Default Market Offer (DMO). The price cap is calculated based on prescribed usage levels for an average customer – this means individual customers may pay more than the annual cap if their usage exceeds the average.
The Federal Government introduced the DMO to make energy prices more affordable for customers. The initial price caps will apply from 1 July 2019 to 30 June 2020. The caps differ across distribution areas and tariff types.
You’re only on a ‘standing offer’ if you haven’t signed up to a specific energy plan, called a ‘market contract’. Most AGL customers are on a market contract.
Read our 'Why is electricity pricing changing in your state' article for more information.
The Reference Price is a benchmark price that makes it easier for home and small business customers to compare electricity plans. It is an annual amount, which is based on the price caps for standing offers and a ‘model’ usage amount set by the AER.
Retailers are required to compare the electricity prices they offer (including for their ‘market contract’ plans) to the Reference Price in a wide range of advertising and customer communications. This means that when you’re comparing prices for electricity plans, you can expect to see those prices advertised as % less than (or more than) the Reference Price.
New regulations also require retailers to state a ‘lowest possible price’, based on the model usage amount set by the AER. Since this usage amount is a representative example only, your bill will differ based on your actual usage.
For more information on how it’s calculated, see our reference price explainer.
If you’re an AGL electricity customer on a standing offer covered by the DMO, we’ll automatically adjust your rates to ensure they comply with the default price cap from 1 July. We’ll let you know we’re doing this before 1 July. You’re also welcome to contact us to find a market contract plan that suits you, which could provide better value for money.
If you’re on an AGL market contract plans (on a tariff covered by the DMO rules), you can expect to see comparisons to the Reference Price when we offer you new prices under your plan, or any other plan.
Get in touch with one of our team members on 131 245 and they can answer any questions you may have.