Each year on 1 July, regulators set electricity prices for the Default Market Offer (DMO) and Victorian Default Offer (VDO). But what does that mean for you?
What are the DMO and VDO?
Both of these are benchmark prices that help you compare energy plans.
The VDO is set by the Essential Services Commission and applies to households and small businesses on an electricity ‘standing offer’. It’s designed to set a fair price for Victorians who can’t or don’t want to sign up to a more competitive market offer.
The DMO is a similar guide price for New South Wales, South Australia and south-east Queensland and is set by the Australian Energy Regulator.
Most electricity consumers are on competitive energy plans known as ‘market offers’, which may have different features or benefits, and are often priced below the DMO/VDO. But if you don’t choose one of these offers you may be on what’s known as a ‘standing offer’, in line with the VDO/DMO.
What does the change to the DMO/VDO mean?
From July 1, most customers on a standing offer will see their rates decrease, which is good news. However, for the large majority of customers who are on market offers, your prices will likely also change, but this could be different to the changes to the VDO/DMO, depending on your location and energy plan.
You could already be on an offer that’s better than the VDO/DMO, and a rate drop is not guaranteed. It’s best to compare your energy plan against these default offers.
We’ll be in touch
At Momentum Energy, we’re reviewing our rates for all of our customers. During June and July, we’ll be in contact with our affected customers to explain the price changes in more detail.
You can read more about who will be affected and the timing of changes here.
You can access information to help you compare your plan on MyAccount. Simply go to the Bills tab for billing details or the Usage tab to see how much electricity you’ve used. If you prefer, give us a call on 1300 662 778.
We know the rising cost-of-living is affecting some of our customers. So if you find you need a hand, we may be able to help. For info on how you can manage your bills or to find out about the financial assistance we offer, visit our payment support page or call us on 1300 662 778.
More things to know (FAQ)
What’s a standing offer?
A standing offer is a default that all energy retailers need to make available to customers. You might be on one if you haven’t signed up to a market offer (or if you’ve asked for one).
What is a market offer?
A market offer is a competitive offer by retailers and can provide discounts and is often below the rates of a standing offer.
You can find a good comparison of standing and market offers here.
How do I know what type of plan I’m on?
Log into MyAccount or check your bill. Market offers usually have a distinctive name (eg Home Run, EV Does It). Standing offers are usually just referred to as a Standing Offer.