Submission to Default Market Offer prices: Options paper on the methodology to be adopted for the 2022-23 determination Alternative formats available on request to PIAC - Contact PIAC
PIAC responded to the Australian Energy Regulator’s (AER) Options Paper, Default Market Offer prices: Options paper on the methodology to be adopted for the 2022-23 determination.
PIAC strongly supported default pricing and the role of the DMO and reference price but noted issues with the current methodology and implementation of both. People continue to pay more for an essential service than is necessary or efficient in circumstances where they should be protected. This includes those on standing offers and market offers with expired terms and conditions. These poor outcomes are a direct and intentional result of the formulation of the DMO and could be addressed through improved methodology.
PIAC reiterated our recommendation for the AER to reassess the way the objectives and role of the DMO is defined, considered, and applied, to ensure they are meeting their obligation to act in the long-term interests of all consumers.