The Australian Competition and Consumer Commission (ACCC), in conjunction with the Essential Services Commission (ESC), made some changes to the Energy Retail Code that relate to how your bill looks and how we display GST on your energy bill.
We’ve simplified the calculation information for your total energy charges to make it clearer and easier to understand what amounts include GST.
Previously, these amounts shown in the detailed breakdown were GST-exclusive, and then we added in the GST separately. From 1 July 2019, supply and usage charges shown on your bill will include GST.
What is the Default Market Offer (DMO)?
New government regulation came into effect on 1 July 2019. As part of the changes, the government introduced a benchmark electricity price set by the Australian Energy Regulator (AER).
In NSW, SA and QLD this is known as the Default Market Offer (DMO), it’s also referred to as the Reference Price.
Energy Trade Retail, powered by Energy Locals Pty Ltd – and all retailers – will now advertise and offer discounts that refer to the reference price, which will help make comparing discounts easier. Some exceptions apply, such as solar customers.
Different parts of Australia have a different reference prices – this is because energy usage and distribution costs vary across the country and will affect everyone differently.
The reference price is not a per kWh rate. Instead, the government has provided a cost figure for each type of representative customer, based on ‘average’ annual household or small business energy use.
Why was the Reference Price introduced?
The reference price has been introduced by the Federal government to reduce standing offer prices. It makes it easier to compare electricity prices between different energy retailers and is designed to act as a safety net for customers who could otherwise be paying excessive rates for the energy they consume.
What does ‘tariff’ have to do with reference price?
Your ‘tariff’ simply refers to how your electricity usage charges are calculated. Most consumers are on a single-rate tariff, which means their usage charges stay the same throughout the day.
Updates and more information
The Australian Energy Regulator will be reviewing prices annually. We’ll keep you updated as we get new information and all affected customers will be contacted before any changes are made.