AER Draft Determination of default market offer prices

AER Draft Determination of default market offer prices

AU Energy Compliance
The Australian Energy Regulator (AER) has published its draft determination of default market offer prices. Below we look at the methodology used and the implication for energy sellers. By Connor James, Compliance Quarter.  The default market offer (DMO) came about as a result of recommendations from the Australian Competition and Consumer Commission (ACCC) in its retail electricity price inquiry (REPI). On 23 February 2019, the AER published draft default market offer prices, which are to apply from 1 July 2019 for standing offer customers on relevant tariffs, in network distribution regions not subject to state-based price regulation. Price Reductions As has been widely reported, in a number of regions the DMO will result in a decrease in the rate being paid by consumers on standing offers. The DMO is said to result in “reductions…
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