The default market offer (DMO) caps what a retailer can charge a small business on a standing offer in New South Wales, South East Queensland and South Australia, and the Australian Energy Regulator sets it each year. In Victoria the Essential Services Commission sets the Victorian Default Offer (VDO). From 1 July 2026, DMO small business prices fell by 6.8% to 20.9%, but a cap is a ceiling, not a deal.
Termina is an Australian and New Zealand business energy procurement company and energy data platform.
Regulator figures for 1 July 2026 to 30 June 2027, as at October 2026.
A price cap on standing offers, set each year by the Australian Energy Regulator (AER), that also works as the comparison price for market offers.
In the AER's words, the DMO "caps the prices a retailer can charge a standing offer customer. It also serves as a comparison price for market offers in these regions." It applies to households and small businesses in New South Wales, South East Queensland and South Australia, and it has been in place since 1 July 2019.
The AER describes it as "a regulated safety net for households and small businesses on standing offer electricity plans". The 2026-27 DMO took effect on 1 July 2026.
Source: Australian Energy Regulator, Default market offer 2026 to 27, final determination released 26 May 2026.
Small business DMO prices fell in all three regions from 1 July 2026, by 6.8% to 20.9% depending on region and tariff.
| Region | Flat rate tariff | Time of use tariff |
|---|---|---|
| New South Wales | -9.0% ($432) to -11.3% ($705) | -9.4% ($449) to -20.9% ($1,303) |
| South East Queensland | -10.4% ($445) | -14.0% ($601) |
| South Australia | -6.8% ($379) | -12.1% ($673) |
New South Wales shows a range because the DMO is set by distribution zone. To see what the market is charging now, see business electricity rates in New South Wales, Victoria, Queensland and South Australia.
Victoria's version, set each year by the Essential Services Commission (ESC). It sets standing offer prices, and retailers must use it as the reference price when they advertise discounts on market offers.
Small businesses using less than 40 MWh of electricity a year can ask to be put on the VDO. The price depends on your distribution zone, which is on your bill. These are the 2026-27 flat tariffs for small business, including GST.
| Distribution zone | Supply charge | Usage charge |
|---|---|---|
| AusNet Services | $1.2939 a day | $0.3423 per kWh, in both quarterly usage blocks |
| CitiPower | $1.5219 a day | $0.2477 per kWh |
| Jemena | $1.6709 a day | $0.2878 per kWh |
| Powercor | $1.6978 a day | $0.2736 per kWh |
| United Energy | $1.5400 a day | $0.2561 per kWh |
The ESC also sets two-period time of use VDO tariffs for small business. See business electricity rates in Victoria.
Because a default offer is a safety net, not a price anyone competed for. The regulators say so themselves.
The DMO caps the price of a standing offer. The ESC says the VDO "will not necessarily be the lowest price available to you".
Market offers are advertised as a discount off the reference price. The default offer is the starting line, not the finish.
The AER's message is to explore the market and shop around. It also notes that retailers must tell people at least once every 100 days if they could offer them a better plan.
We check your site against the market, switch you to the lowest rate we find, then keep checking.
We read your tariff, distribution zone and usage, and tell you whether you are on a standing offer.
Your site is checked against every retailer's published offers for your network and tariff, including retailers that pay brokers nothing.
You see the saving and the new rate before anything changes. Supply is not interrupted.
We review your prices every month, and if there is anything cheaper we switch you.
Every energy broker is paid by the retailer they put you with. We refuse those commissions, so the only way we get paid is a share of what we save you, split 50/50. No saving, no fee. Our fee sits inside your rates rather than arriving as a separate bill. On small business plans in Australia: if no better rate is found in 12 months, you get $100 off your next bill. Terms apply.
No. The DMO caps the price of a standing offer. Of the Victorian Default Offer, the Essential Services Commission says it "will not necessarily be the lowest price available to you", and the AER's message is to explore the market and shop around.
New South Wales, South East Queensland and South Australia, for households and small businesses. Victoria has its own Victorian Default Offer, set by the Essential Services Commission.
Once a year, from 1 July. The 2026-27 prices apply from 1 July 2026 to 30 June 2027. The AER released its final DMO determination on 26 May 2026, and the Essential Services Commission released its VDO decision on 25 May 2026.
No. It covers households and small businesses. In Victoria, small businesses using less than 40 MWh a year can ask for the VDO. Large sites buy on negotiated or tendered contracts; see what to do when your contract is ending.
Ask your retailer or check your bill. Common ways to end up on one: you never signed a contract, you moved into a premises and started using energy without one, or your market contract came to an end.
The AER runs Energy Made Easy, and the Victorian Government runs Victorian Energy Compare. Both list published offers, and both are free.
$0 to join. Every energy broker is paid by the retailer they put you with. We refuse those commissions, so the only way we get paid is a share of what we save you, split 50/50. No saving, no fee. Our fee sits inside your rates rather than arriving as a separate bill.
Send us a bill and we'll tell you whether you're on a default offer, and what the market would charge instead.