Analysis

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Retail reform reset: Why price controls alone won’t power the transition

In June the Federal Government announced it would review the Default Market Offer methodology used by the Australian Energy Regulator to set the safety net price for 8-9 per cent of households who are not able to or who do not go onto competitive market offers. The review is considering bringing the DMO closer to the approach used to set the separate Victorian Default Offer. To better understand the differences between DMO and VDO and help inform the review, the Australian Energy Council commissioned Ernst & Young (EY) to assess the different methodologies. Here Jo De Silva considers the report findings and the broader implications of the proposed changes, as well as other options for price reform.

BY Jo De Silva Jul 31 2025

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OECD Price Comparison: How do we stack up?

As households and small businesses are notified of changes to their energy prices for the financial year, there continues to be scrutiny of our power prices. With energy affordability an ongoing concern for Australians, comparisons with overseas energy markets are common with consideration of how Australia's costs compare to other countries. We take a look at how our electricity prices stack up against other developed nations using the latest data across 38 OECD countries.

BY Carol Tran Jul 10 2025

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Regulated Electricity Prices: A look at network and wholesale costs

Retail costs have recently received much attention in the draft regulated Default Market Offer, but network and wholesale costs have also risen. These two components make up the bulk of the final bill, accounting for 33-48 per cent (network) and 31-44 per cent (wholesale) of DMO 7 draft prices. As the energy transition progresses with new network investments and the shift to renewables, storage, and gas, these costs will require closer focus. Last week, we explored retail costs; this week, we examine the network and wholesale cost components.

BY Australian Energy Council Mar 27 2025