{"id":72424,"date":"2023-03-16T05:41:49","date_gmt":"2023-03-15T19:11:49","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=72424"},"modified":"2024-07-31T10:29:51","modified_gmt":"2024-07-31T00:59:51","slug":"dmo-vdo-electricity-increases-mb2862","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/dmo-vdo-electricity-increases-mb2862\/","title":{"rendered":"Draft Electricity Price Decisions Bring Grim News"},"content":{"rendered":"

\"Electricity<\/p>\n

Power bills look set to jump yet again for millions of Australian households and small businesses already reeling from the ongoing cost-of-living battle.<\/p>\n

Yesterday morning, the Australian Energy Regulator and the Victorian Essential Services Commission announced their draft decisions for the Default Market Offer (DMO) and Victorian Default Offer (VDO) respectively.<\/p>\n

Update:<\/strong> The Queensland Competition Authority also released its draft determination on regulated retail electricity prices for standard contract customers in regional Queensland from 1 July 2023.<\/p>\n

DMO? VDO? WTF?<\/h2>\n

The Default Market Offer (DMO) applies in South Australia, New South Wales and south-east Queensland. It’s the maximum price an electricity retailer can charge a customer who hasn\u2019t signed on for a market offer. The Australian Energy Regulator (AER) has set DMO prices for residential and small business customers since 2019.<\/p>\n

The VDO is the Victorian equivalent, and is set by the Essential Services Commission (ESC).<\/p>\n

While most electricity customers will be on some sort of market offer, the DMO and VDO pretty much set the stage for other offers. When the DMO\/VDO go up, market offers tend to follow.<\/p>\n

“DMO 5” Draft Decision<\/h2>\n

The following indicates the AER’s proposed increases in each jurisdiction\/service area. Note the following figures refer to customers without a controlled load tariff.<\/p>\n\n\n\n\n\n\n\n\n
<\/td>\nResidential<\/strong><\/td>\nSmall business<\/strong><\/td>\n<\/tr>\n
Ausgrid (NSW)<\/td>\n+22.2%<\/td>\n+14.7%<\/td>\n<\/tr>\n
Endeavour (NSW)<\/td>\n+20.9%<\/td>\n+19.9%<\/td>\n<\/tr>\n
Essential (NSW)<\/td>\n+22.1%<\/td>\n+17.5%<\/td>\n<\/tr>\n
Energex (SE QLD)<\/td>\n+19.8%<\/td>\n+19.4%<\/td>\n<\/tr>\n
SAPN (SA)<\/td>\n+21.8%<\/td>\n+25.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Commenting on the increases, AER Chair Clare Savage said<\/a>:<\/p>\n

\u201cWe know many households and businesses are already struggling with cost-of-living pressures. This is certainly a challenging environment for people to hear that further electricity price rises are on the horizon.”<\/p><\/blockquote>\n

Ms. Savage pointed out the DMO is not the best offer, it is a “safety-net” (if it can be called that these days), and encouraged households and business to shop around electricity retailers<\/a>.<\/p>\n

Bear in mind this is a draft decision. The AER will engage in some further consultation<\/a> before arriving at a final decision in May and \u201cDMO 5\u201d will come into effect on July 1 this year.<\/p>\n

Regional Queensland Draft Decision<\/h2>\n

The QCA draft decision would result in a 28.9% jump in the annual bill for a typical residential customer (on tariff 11) and a 26.1% increase for a typical small business customer (on tariff 20).<\/p>\n

More on the QCA’s draft determination here<\/a>.<\/p>\n

VDO 2023-24 Draft Decision<\/h2>\n

News on electricity prices out of Victoria weren’t any better.<\/p>\n

The ESC\u00a0 is proposing to increase the Victorian Default Offer by around $426 for residential customers, with bills jumping from $1,403 to about $1,829 per year (+~30%). Small business customers would be whacked with an increase of around $1,738; from $5,620 to about $7,358 per year (+~31%)<\/p>\n

“The changes are primarily due to significant increases in wholesale electricity costs driven by energy market volatility in 2022,” states the Essential Services Commission. “This impacted the prices energy retailers paid in their futures contract arrangements to purchase electricity from the wholesale market to supply Victorian consumers.”<\/p><\/blockquote>\n

A 2023\u201324 Victorian Default Offer Draft Decision fact sheet can be viewed here<\/a>.<\/p>\n

Like the AER, the ESC will carry out further consultation before arriving at a final decision by 24 May 2023. Once that’s approved, new Victorian Default Offer prices will come into effect on 1 July 2023.<\/p>\n

(Some) Help Is On Its Way<\/h2>\n

Federal Minister for Climate Change and Energy Chris Bowen was quick to point out the draft increases are up to 29 percentage points lower than the AER projected late last year, and this was thanks to actions under the Albanese Government’s Energy Price Relief Plan<\/a>. But that will be cold comfort to Australian households and small businesses having to dig even deeper.<\/p>\n

Minister Bowen also indicated more help is to come, with the Federal Government continuing to work with the States and Territories to deliver energy bill relief in the May Budget.<\/p>\n

For Victorians, there’s also the current round of the Power Saving Bonus<\/a>, which is worth $250. That ends on March 23, but will be immediately followed by another round – and yes, Victorian households can double-dip; scooping up $500 in total.<\/p>\n

For South-east Queenslanders, Premier Annastacia Palaszczuk has reportedly promised rebates on their electricity bills in the upcoming state budget that will be more generous than the $175 offered in the current financial year.<\/p>\n

No word yet from the SA and NSW state governments as to what sort of assistance they’ll be offering – if any.<\/p>\n

Real Help Is Already Here – Go Solar<\/h2>\n

Rebates and such are helpful and better than a poke in the eye with a sharp stick, but they only offer short term relief. And even when electricity prices eventually start dropping, they will have a long way to fall to get back to what they were before.<\/p>\n

For households and businesses that can, the best way to buffer against electricity price rises and get tiny power bills for years to come is to install a solar power system<\/a>. To discover how much a good quality system could save your household or small business, and the approximate simple payback period, try SolarQuotes’ popular solar calculator<\/a> – it’s very easy to use.<\/p>\n","protected":false},"excerpt":{"rendered":"

Power bills look set to jump yet again for millions of Australian households and small businesses already reeling from the ongoing cost-of-living battle.<\/p>\n","protected":false},"author":17,"featured_media":72425,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[678],"tags":[],"class_list":["post-72424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-battery-news","entry"],"acf":[],"yoast_head":"\nDraft Electricity Price Decisions Grim News<\/title>\n<meta name=\"description\" content=\"Power bills look set to jump yet again for millions of Australian households & small businesses 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A default offer is the maximum price an electricity retailer can charge a customer on a standing offer, which is a\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Electricity offer determinations","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/05\/electricity-offers-determination.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/05\/electricity-offers-determination.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/05\/electricity-offers-determination.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/05\/electricity-offers-determination.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2024\/05\/electricity-offers-determination.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":92674,"url":"https:\/\/www.solarquotes.com.au\/blog\/dmo-electricity-offers-mb3207\/","url_meta":{"origin":72424,"position":1},"title":"Energy Minister Signals Electricity Offer Shake-Up","author":"Michael Bloch","date":"June 19, 2025","format":false,"excerpt":"A mechanism ensuring electricity retailers can't charge some customers as much as they otherwise may isn't working as intended says Federal Minister for Climate Change and Energy Chris Bowen. The Australian Energy Regulator (AER) currently sets the Default Market Offer (DMO) in New South Wales, southeast Queensland and South Australia;\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Federal Energy Minister Chris Bowen","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/06\/electricity-prices-dmo-2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/06\/electricity-prices-dmo-2.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/06\/electricity-prices-dmo-2.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/06\/electricity-prices-dmo-2.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/06\/electricity-prices-dmo-2.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":75996,"url":"https:\/\/www.solarquotes.com.au\/blog\/energy-australias-prices-rise\/","url_meta":{"origin":72424,"position":2},"title":"More Customers Take the Hit: EnergyAustralia\u2019s Prices to Rise","author":"Richard Chirgwin","date":"June 19, 2023","format":false,"excerpt":"EnergyAustralia has announced its 2023 Default Market Offer (DMO), Victorian Default Offer (VDO) and Variable Market contract price increases. For those not versed in the Australian energy market, here's a quick explainer of those acronyms: Default Market Offer (DMO): This is a safety net for New South Wales, South Australia,\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"calculator, credit card and electricity bills","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/06\/ea-price-increases.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":75225,"url":"https:\/\/www.solarquotes.com.au\/blog\/solar-electricity-price-hikes\/","url_meta":{"origin":72424,"position":3},"title":"AER Points to Solar PV as a Factor in Electricity Price Hikes","author":"Richard Chirgwin","date":"May 26, 2023","format":false,"excerpt":"Electricity prices in Queensland, NSW and South Australia will rise by as much as 23.9% in July, with the Australian Energy Regulator publishing its final Default Market Offer (DMO) determination for 2023-2024. Regional Variation in Electricity Price Rises How much of a rise you can expect depends on your distributor:\u2026","rel":"","context":"In "Electricity Prices"","block_context":{"text":"Electricity Prices","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/electricity-prices\/"},"img":{"alt_text":"pylons in an Australian sunset","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/05\/australian-pylons-sunset.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/05\/australian-pylons-sunset.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/05\/australian-pylons-sunset.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/05\/australian-pylons-sunset.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2023\/05\/australian-pylons-sunset.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":89298,"url":"https:\/\/www.solarquotes.com.au\/blog\/bowen-electricity-dmo-mb3109\/","url_meta":{"origin":72424,"position":4},"title":"Bowen Pledges Not To Meddle With Power Price News","author":"Michael Bloch","date":"February 4, 2025","format":false,"excerpt":"Federal Minister for Climate Change and Energy Chris Bowen has said that unlike the previous Morrison Government in the lead-up to the last election, he won't be interfering with the timing of electricity Default Market Offer (DMO) announcements for 2025\/26. The Australian Energy Regulator (AER) sets Default Market Offer electricity\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Electricity prices: Default Market Offer (DMO) 2025\/26","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2025\/02\/bowen-dmo-power-prices.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":62211,"url":"https:\/\/www.solarquotes.com.au\/blog\/electricity-prices-nsw-sa-seqld-mb2491\/","url_meta":{"origin":72424,"position":5},"title":"Electricity Price Rise Shock For NSW, SA And SEQLD","author":"Michael Bloch","date":"May 27, 2022","format":false,"excerpt":"Victoria and Western Australia had already been delivered bad news on electricity prices. New South Wales, South Australia and South-East Queensland received theirs yesterday. Just to briefly recap, last week Western Australians were told electricity prices would rise (again), harshing some of the buzz provided by the McGowan Government's recently\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Electricity bill increases - NSW, South Australia and South-East Queensland","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2022\/05\/electricity-nsw-sa-qld.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/72424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/comments?post=72424"}],"version-history":[{"count":13,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/72424\/revisions"}],"predecessor-version":[{"id":85577,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/posts\/72424\/revisions\/85577"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media\/72425"}],"wp:attachment":[{"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/media?parent=72424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/categories?post=72424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.solarquotes.com.au\/blog\/wp-json\/wp\/v2\/tags?post=72424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}