There are two different ‘reference prices’ depending on where you live.
These references prices help you better compare the overall cost of electricity plans between different retailers.
In New South Wales, South Australia and South East Queensland, whenever electricity retailers advertise or tell you about a plan, or change the prices you’re paying, they must compare the annual estimated cost of their plan with the
annual estimated cost of the DMO and show you the % difference between the two.
In Victoria, electricity retailers must make a similar comparison (in either $ or % terms) when they advertise plans that include discounts.
It’s different to what you’re used to seeing, so it may look complicated at first, but giving you a standard benchmark can help you compare different offers. (For example, if one offer is 10% less than the reference price and another
is 12% less than the reference price, you can accurately gauge which is cheaper.)
On 1 July 2019, a bunch of new reforms rolled out across the energy sector to help make energy pricing more transparent.
Set by the Essential Services Commission, the Victorian Default Offer (VDO) is the price all Victorian electricity retailers must provide to residential and small business customers on standing offers.
As an energy customer, you can choose between a standing offer or a number of market products which vary in cost. Either of these types of offers could be best for you, depending on your individual situation and energy
The rates for the VDO are set by the Essential Services Commission (ESC). If they make any changes to these rates, we’ll let our customers know.
Yes, all customers are eligible for the Victorian Default Offer. We’re happy to tell you more about this offer – or move you to it – please give us a call to discuss your options.
Retailers in Victoria, New South Wales, South Australia and Queensland must use their bills to tell customers about the cheapest generally available energy plans, and how to access them. In Victoria, we also include this advice with any changes to pricing or plan benefits.
Not everyone wants the cheapest energy offer. Some people prefer to pay a little more to get certain fees waived, or extra features. It just depends on what suits their needs at the time.
We’ve always been happy to evaluate any customer’s plan and recommend suitable offers when they ask. The new regulation means we’ll now proactively provide this information to all customers.
Set by the Australian Energy Regulator, the Default Market Offer (DMO) is basically a price cap for standing offers. In New South Wales, South Australia and South East Queensland, retailers have to set their standing
offer prices so a customer’s total annual electricity spend falls under the DMO.
Bear in mind, this doesn’t mean standing offer rates will be the same across all retailers - they just have to be lower than the price cap.
From 1 July 2020 the price cap covers these standing offers:
If you’re a Momentum standing offer customer who’s eligible for the DMO, we’ve already adjusted your rates to below the price cap - you should have received a letter from us about this, which included your new rates.
If you’re not eligible for the DMO, we’ll continue to supply your electricity under your existing standing offer rates (subject to future price variations).
A flat tariff is any electricity rate that applies all day, every day. On a flat tariff, there aren’t any peak or off-peak times with different rates. You pay the same rate 24/7.
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