24/06/2026
Why is the DMO going down, but my power bill is still going up? 🤯📈
If you've seen the headlines recently, you may have heard that the Default Market Offer (DMO) is decreasing for many customers in the new financial year.
So why are some households still receiving notices that their electricity prices are increasing?
At first glance, it seems confusing. But the answer lies in understanding what the DMO is—and what influences the price you actually pay.
What is the DMO? : The Default Market Offer (DMO) is the benchmark price set annually by the Australian Energy Regulator (AER). It acts as a reference price and a safety net for customers on standing offers, but it isn't necessarily the price most households pay.
Market offers from retailers can be above or below the DMO depending on your location, usage and the retailer's pricing.
Why is the DMO changing?
Lower wholesale electricity costs: Australia is generating more electricity from renewable sources, and large-scale batteries are helping store energy and supply it when demand is higher. These developments have contributed to lower wholesale electricity costs at certain times of the day.
Annual AER review: Each year, the AER reviews the DMO based on several cost components, including wholesale energy costs, network costs and retailer operating costs. The result is an updated benchmark price for the coming year.
So why are some retailers still increasing prices?
Retailers buy energy differently: Retailers manage their energy costs in different ways. Some purchase electricity well in advance and may still be managing the impact of higher costs from previous years.
Network costs still matter: Delivering electricity to homes and businesses requires ongoing investment in poles, wires and other infrastructure. Changes in these network costs vary by region and are one factor that can influence the prices retailers charge customers.
Your current plan may have changed: Promotional offers and discounts don't last forever. If you've been on the same plan for a while, your rates may have changed, or there may now be newer offers available in the market.
The bottom line
A lower DMO doesn't automatically mean everyone's electricity bill will fall. The DMO is a benchmark, not a guarantee of the price you'll pay. Electricity prices vary depending on where you live, how much energy you use and the plan you're on.
If you've recently received a price increase notice, it may be worth reviewing your current plan and comparing available options. Even small differences between plans can add up over time because when it comes to electricity prices, staying on the same plan isn't always the cheapest option. Compare your electricity bill here: https://www.econnex.com.au/energydoneright 🔌
Struggling with rising bills? Energy Done Right helps you compare utility plans with ease - so you can switch smarter and start saving.