Why is electricity pricing changing in your state?
AGL is committed to making energy more affordable and easier to understand. We're here to help you understand the Default Market Offer and how it compares.
The Federal Government introduced the DMO to make energy prices more affordable for customers. The initial default price applies from 1 July 2019 to 30 June 2020. From 1 July 2020, a new default price will be introduced.
The default price represents a benchmark, or reference price, for what electricity retailers can charge a range of customers in an electricity distribution zone.
The default price also limits the annual cost of standing offers set by retailers. You wouldn’t be on a standing offer if you’ve instead signed up to a specific energy plan, called a ‘market contract’. The maximum amount that you can be charged if you’re on a standing offer will depend on a range of factors, including usage, distribution area and tariff type.
For customers who are covered by the new rules, retailers are also required to say how electricity prices that they advertise, publish or offer (e.g. energy plan prices) compare to the default price cap.
They must also estimate the annual cost of the offer, based on certain usage assumptions, and explain a range of other matters depending on the nature of the electricity offer or advertisement.
At AGL, we're committed to making energy fairer for our customers.
Here’s what we’re doing to help our customers in NSW, South Australia and south-east Queensland through these changes.
We can help you understand the new default price and how it compares with your current plan and other market rates.