As of 1 July 2021, the energy reference price set by the National Energy Regulator in NSW, SA & QLD has changed. Energy providers advertising rates now need to base their discounts off the new reference price in each state. Therefore, your customers may see differences when comparing June and July discounts. To help you, we have answered some FAQs about the changes.
What is a Default Market Offer?
The Default Market Offer or DMO is an electricity tariff set by the Australian Energy Regulator (AER). In effect, the DMO is the annual maximum total bill amount (called a reference price) energy companies can charge based on a set average usage amount. It’s a reference price designed to make it easier for customers to compare energy plan discounts across different providers.
Which states use the DMO?
NSW, QLD & SA all utilise the DMO as a reference for pricing discounts. In VIC, the Victorian Default Offer works in the same way, but is calculated slightly differently to the DMO.
What does the DMO change mean for Sumo pricing?
Sumo’s Tariffs (or price per Kilowatt) are unchanged as of 1 July. However, because the reference price has changed, IBO’s and prospective customers may notice the discount % displayed on the Sumo website is different. This is because the discounts included as part of the ACN exclusive plans provided by Sumo are benchmarked against the DMO.
What does it mean for Sumo’s ACN exclusive offers?
The discount based on the reference price will be different from 1 July, however, ACN’s exclusive offers remain competitive, and the tariffs or rates that a customer pays have not changed.
How should I talk about energy price my customers?
Our recommendation is to simply use the Sumo quoting tool. This is the best way to compare customer savings in real time and IBOs can easily send this to prospective customers for their review. Remember, it’s important to have a copy of the customer’s most recent bill so the Sumo quoting tool can easily compare direct monthly or quarterly costs.
