From this July most Australian homes will be paying hundreds of dollars more a year for electricity. The industry watchdog, the Australian Energy Regulator (AER), announced an increase to the Default Market Offers (DMOs) by up to 18.3%.
Simply put, default market offers (DOMs) are the safeguard that ensures a maximum amount a retailer can charge their customers for a unit of electricity in a distribution zone.
From July 2022, the DOM rises mean you could get stung by higher bills if you’ve not shopped around for a better energy offer.
So why the increase?
In the last year wholesale costs have jumped by more than 140% for retailers. This is thanks to the war in Ukraine and out of control coal and gas prices.
The AER is arguing they need to give retailers the green light to pass those cost pressures on to consumers, hence today’s announcement.
- Benchmark electricity price will rise by up to 18.3%
- Aussie households can expect to be hundreds of dollars a year out of pocket
- AER states out of control wholesale power costs, which have jumped by over 140% in the last year, are to blame for the massive increase
The ACCC puts the average Australian home’s electricity bill at $1,434 a year, so that translates to an increase of over $250 annually.
So now could be a particularly good time to shop around for competitive quotes for solar power for your home.