Overview
- The federal energy minister has asked the Australian Competition and Consumer Commission to investigate reports that some retailers increased fixed supply charges while cutting per-kilowatt-hour rates, raising concerns that overall household bills may not fall as expected.
- Reports from customers that bills rose when the regulator's Default Market Offer takes effect have prompted the referral and a regulatory review of how price changes were communicated to consumers.
- The Australian Energy Regulator says its DMO sets maximum default prices for certain regions and that this year’s reductions reflect lower wholesale contract prices, reduced spot volatility, and more evening output from wind farms and large batteries.
- Ministers have asked regulators to test compliance with prohibited misconduct rules that require companies to pass sustained cost falls through to consumer bills, and investigations are at an early stage.
- The DMO applies to default offers in New South Wales, South East Queensland and South Australia and acts as a benchmark rather than a universal cap, meaning some market offers can still be priced differently by retailers.