The market for renewable energy certificates in Australia is currently in freefall. Prices are dropping like a stone, making the cost of being green much cheaper for your retailer. Make sure it gets cheaper for you, too.
The Australian Energy Market Commission (AEMC) is officially starting its Accelerating Smart Meter Deployment (ASMD) reforms. If you don’t already have a smart meter, you will by the end of 2030.
'Default Offer' prices put a cap on what retailers can charge for their standing offers, plus set the benchmark for discounting. Here's everything you need to know
From 1 July 2019, new regulation replaced the old Standing Offers with Default Offers across most of the National Energy Network.
There are two kinds of Default Offer: DMO and VDO.
DMO rates are expressed as a single dollar value for a benchmark annual consumption level, rather than as a price per day plus a price per unit of usage.
In Victoria, VDO rates are expressed as a price per day plus a price per unit of usage. Retailers are free to market and sell Market Offers, but they must make the VDO price available for those who want it.
Both DMO and VDO set a cap on the price that a customer will pay when they have not entered into a Market Offer with their retailer. They also set the benchmark against which any discounts offered in Market Offers must be expressed.
In Victoria, the VDO is specified as a price per kWH and a daily supply rate, which is analogous to how single rate plans are priced.
For single rate and single rate + controlled load tariffs, Bill Hero includes a calculation of how each plan compares, in terms of % higher or % lower, to the VDO price calculated for the same usage a time period for your bill.
Outside Victoria, the DMO is specified as a single price for a set annual kWh consumption level. Bill Hero calculates the % above or % below DMO by separately calculating what each plan would have cost at the reference kWh consumption level for 1 year duration.
Full information on both DMO and VDO is available from AER and the Vic ESC here:
AER is responsible for the DMO
The market for renewable energy certificates in Australia is currently in freefall. Prices are dropping like a stone, making the cost of being green much cheaper for your retailer. Make sure it gets cheaper for you, too.
The Australian Energy Market Commission (AEMC) is officially starting its Accelerating Smart Meter Deployment (ASMD) reforms. If you don’t already have a smart meter, you will by the end of 2030.
There is a market-wide price reset that takes effect from 1 July every year. Your switching decisions through this transition depend on a few key factors. Here's a detailed breakdown to help guide your decision.
New Default Offer pricing has been announced for FY 2026. Here's everything you need to know.
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