PIAC responded to the AER’s position paper on setting a Default Market Officer Price (DMO) for energy retailers.
PIAC strongly supports the need for significant reform to default retail pricing, and welcomes the recognition that, as it stands, the retail electricity market does not operate in the interests of consumers. PIAC considers the introduction of a DMO mechanism represents an opportunity to reshape the operation of the market to support better and more equitable outcomes for consumers in the delivery of an essential service.
Our submission outlines key considerations in determining the role and objective of the DMO, which we consider the are absent in the position paper. PIAC makes a number of recommendations regarding important considerations which the DMO process should include, as well as expressing strong support for a DMO that represents an efficient or fair price guarantee for consumers.