Energy Networks Australia response to 2024-25 final DMO decision
The Australian Energy Regulator’s final 2024-25 Default Market Offer (DMO), released today, shows that while wholesale energy prices are decreasing, network charges have been impacted by rising inflation and interest rates, and the costs from investing in a more resilient grid.
The DMO is a maximum price, determined annually by the AER, that retailers can charge electricity customers on default contracts. Network charges comprise a portion of the overall cost.
Jurisdictional price differences reflect size of networks, number of customers connected and approved network investments in infrastructure resilience and the transition to renewables. As interest rates have risen across the economy, the cost of financing this infrastructure has also increased.
Energy Networks Australia CEO Dom van den Berg said:
“Network charges are just one component of an energy bill and network businesses are under pressure to deliver for customers.
“The way networks need to deliver electricity now and through this transition is different than we’ve ever seen before. In addition to preparing the grid for this transformation, distribution networks are also responding to increased climate and weather-related events year-round, and facing rising costs of new infrastructure, inflation and interest rates.
“Year on year, the networks work hand in hand with their customer groups and the regulator trying to get the balance of investment and cost right. All tariffs and network charges are subject to an extensive regulatory approval process.
“While lower DMO prices ultimately mean lower bills for some, the DMO is still not a substitute for a competitive retail market. All customers should be getting the most competitive price that their retailer can offer and should speak to them directly if they don’t believe they are getting a competitive deal.”
ENDS
Media Contact: Claire Ginn, 0409246966
Energy Networks Australia is the national industry body representing Australia’s electricity transmission and distribution and gas distribution networks. Our members provide more than 16 million electricity and gas connections to almost every home and business across Australia.
