From 1 July 2019, the Australian Energy Regulator (AER) 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 cap applies from 1 July 2019 to 30 June 2020, differing across distribution areas and tariff types. From 1 July 2020, new price caps will be introduced.
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.