AGL welcomes the opportunity to provide comments to the Australian Energy Regulator (AER) in relation to the Position Paper on the Default Market Offer Price for 2020-21 which was published in September 2019. The introduction of the DMO is a fundamental change in the regulatory framework and represents a return to the partial regulation of retail electricity prices.
When the DMO was implemented on 1 July 2019, no existing AGL customers faced price increases as standing prices were reduced to match the DMO. AGL agrees that it is not appropriate to apply the top-down approach used to establish the 2019-20 DMO for future periods as it will not meet the policy objectives.
Read the full submission here.