Could someone please explain how the thing called "Default Market Offer" for electricity works in NSW?
For example, I currently live in an apartment where Origin is the exclusive "embedded" electricity provider. My electricity bill for the last month alone was $300, which projects to an annual cost definitely exceeding the government's DMO.
So what kind of "safety net" does the DMO provide and how does it work, if I eventually hit the DMO threshold with Origin?
But how about this? https://www.accc.gov.au/consumers/specific-products-and-acti…
The reference price is set by the Australian Government’s Default Market Offer. The Default Market Offer is the maximum annual bill that a customer on a standing offer should receive if they use the average amount of electricity in your area.
The reference price or Default Market Offer is set on 1 July each year. This price applies to New South Wales, South East Queensland, and South Australia.
You don't need to know what the reference price is to use it. Electricity companies must provide a comparison percentage to the reference price when advertising their offers. You can simply compare the percentages for each offer.
Sounds to me like Origin should be capping their accrual annual charge to DMO?
"use the average amount of electricity in your area"
are you an average user?
.
So is the whole point of DMO is to state that (according to https://i.stack.imgur.com/0EuDKl.png), if I use no more than 3,911 kWH a year, the provider can not charge me more than $1,827?
Then I wonder why the government is talking about a "safety net" here? https://www.dcceew.gov.au/energy/programs/price-safety-net
The Default Market Offer (DMO) helps consumers who don’t or can’t shop around for a new electricity deal. The DMO sets a price cap on how much energy retailers can charge electricity consumers on default plans, known as standing offer contracts. These are contracts consumers find themselves on when they have not actively shopped around or switched to a new plan.
The DMO applies to residential and small business consumers in NSW, South Australia and south-east Queensland.
And if there is indeed some safety net (like say, with Medicare), it sounds then like it's a privilege to be on this "default plan, known as standing offer".
How do people get to be on it anyway, even those who live in free-standing houses? Just stop shopping around for better offers?
if they use the average amount of electricity in your area.
Lol, you can't just run a mining farm cooled by air con all day and expect a capped price 😂😂
Besides I barely use the a/c at all, and I can't even switch away from Origin given it is an exclusive provider here.
@uk3000: What's that got to do with you using more than they deem "average"? If you want a lower bill, move or use less power.
@brendanm: Nothing indeed. I now clearly understand that, thanks to other replies in this thread.
Sounds like moving is my only option, given that I don't have a choice of another energy retailer at this address.
I doubt we can further reduce our family power consumption, apart from maybe doing laundry and dishwashing manually, and cooking using a portable gas stove.
@brendanm: 594 kWh over 30 days billing period, according to the most recent bill. We both work mostly from home, that adds up too.
You'd be better off calling the AER and getting the correct information. I assume you're wanting them to investigate your electricity bill anyway.
They'll likely be wanting past bills to to be emailed to them.
That fact sheet seems pretty misleading.
On the ACCC page is this statement:
The reference price is set by the Australian Government’s Default Market Offer. The Default Market Offer is the maximum annual bill that a customer on a standing offer should receive if they use the average amount of electricity in your area.
Price is one component of your energy bill, the other is your usage. Did you heavily use aircon last month? Are you running a bunch of high powered devices? Mining crypto? Leaving your fridge door open all the time?
Definitely review your bill and if you are still concerned get in touch with Origin. If you're still concerned after that, contact the AER as BoltThrower suggested.
Price is one component of your energy bill, the other is your usage. Did you heavily use aircon last month? Are you running a bunch of high powered devices? Mining crypto? Leaving your fridge door open all the time?
We're an energy savvy family and it's a small apartment with basic appliances, only occasional turning aircon on.
What do you mean under "Price is one component"? Are you refereeing to "supply" charges, typically ranging around $1/day?
At its simplest level, total power bill price = (price per kWh * volume of kWh consumed) + (daily service charge * number of days in billing period). This ignores any discount structures etc, which you probably don't get under an embedded network.
There are 4 inputs to that equation, assuming it is a flat rate plan. If your power bill is higher than previously, then at least one of the inputs must have changed. If it's a first time bill and you're reviewing it, you need to ensure you understand the 4 inputs and whether the embedded network operator has got anything wrong with it.
From what the ACCC page says, the usage included in the DMO is an average. If your usage is higher than that average, your bills will be higher.
If you believe your usage is lower that the average and your extrapolated yearly cost is more than the DMO, I would be asking the embedded network operator to provide you with details on your energy plan rates and how they compare to the DMO.
👍
They are unfair. There's some good articles around explaining the problem, but it seems there's not a lot consumers living in these buildings can do: https://www.smh.com.au/national/nsw/apartments-locked-into-h…
It appears the DMO does not apply for embedded networks. Not sure whether this is a reliable source, but the NSW government says here they plan to write a 'Statement of Expectations' (lol) that among other things says "all electricity embedded network operators should abide by Default Market Offer maximum prices".
In your case, you don't have a choice of provider, so any comparison to anything is not relevant.