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The Default Market Offer: what’s to know?

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The Default Market Offer: what’s to know?
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There’s a lot of confusion in the energy market and at Powershop we do everything we can to make your experience better, with greater transparency and fairer pricing.


This information is for NSW, South East QLD and South Australian customers wanting to know more about the Default Market Offer.

If you’re in Victoria click here to learn more about the Victorian Default Offer being introduced from 1 July 2019.


From 1 July 2019, the Default Market Offer will become the maximum annual price retailers in NSW, QLD and SA can charge customers based on what has been deemed by the Federal Government as a fair price – dependent on a customers’ usage, tariff and distributor. But what does this mean for Powershoppers?

We’ve set up FAQ’s to answer some of the questions surrounding the Default Market Offer and what this means for our customers. We understand that this can be a little tricky to understand so if you still have questions don’t hesitate to give our awesome customer team a bell and they’ll be more than happy to help.


What is the Default Market Offer?

The Default Market Offer is a maximum annual price that can be charged by any retailer in NSW, SA and South East QLD. It’s based on three usage levels – low, medium and high – and is dependent on your location and tariff.

For example, the Default Market Offer specifies that an average energy user on a flat rate tariff who uses exactly 3,900kWh per year in the Ausgrid area can’t pay more than $1,467 in 12 months.


So it’s an annual price cap?

No, the Default Market Offer isn’t a price cap. Energy users still have to pay for the energy they use, they just can’t be charged more than what has been set as the annual limit for that amount of usage.


What changes for Powershop customers?

The short answer is – not much! Powershop customers will be contacted if their prices are changing to align with the Default Market Offer.


How does the Default Market Offer compare?

All our Market Offers will be equal to or better value than the Default Market Offer. Feel free to give us a bell on 1800 462 668 from 1 July 2019 to check which offer you’re on and how it compares.


How do I know what suits me best?

At Powershop we have great options to suit different needs and experiences. For customers who want to be more hands on with their power, utilising our shop gives customers access to extra discounts and savings. PowershopLITE suits customers who just want to set and forget with payments automatically debited from your chosen payment method each month.


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40 comments on "The Default Market Offer: what’s to know?"
  1. Ian Egan, June 24, 2019:

    So what will be my maximum KW per Hour charge ?ALSO HOW MUCH WILL MY SOLAR FEED IN BE WORTH IN $ per kw hour?
    Cheers Ian

    • Powershop, June 26, 2019:

      You can see exactly what your new rates are and how they compare to what you’re currently paying in your account here. You solar FIT isn’t changing. Hope that helps!

  2. tim, June 25, 2019:

    does this mean my bill will only be $1,467 in 12 months. even if i use $2000 of power

    • Powershop, June 26, 2019:

      The new Default Market Offer isn’t a price cap – it’s the max amount a retailer can charge a Standing Offer customer for a certain amount of usage. You’ll still pay for the electricity you use. Plus, if you’re with Powershop you’re on a Market Offer, which means the max doesn’t apply – although the good news is that our Market Offer is better value than the Default Market Offer. Hope that helps, get in touch if you have any other questions.

  3. Frank, July 26, 2019:

    Does the Default Market Offer apply the same reference rates regardless of the tariff you’re on – i.e. I’m on a Single rate with a Controlled Load but my parents have Time of Use tariffs with different time periods.

    • Powershop, September 10, 2019:

      Hey Frank! Great question. The Default Market Offer isn’t set rates, it’s a maximum annual reference price retailers can charge an average customer in NSW, QLD and SA (based on their distributor and usage e.g. in Ausgrid and use 3,900kWh per year). The Default Market Offer is the same between tariff types – for example, Single Rate and Time of Use, and any Controlled Load charges are in addition to the Single Rate charges. If this is till confusing feel free to give us a call Monday to Friday 8am-7pm AEST. Thanks!

  4. Phil, June 17, 2020:

    I’m a great fan of renewables, and therefore I’m also a great fan of Powershop, but unfortunately I’m thoroughly confused. To add to this, the weblink “See your new rates” in the Powershop email will not open in my device.

    I’m pretty confused as to what this means. I realise this is being forced on electricity retailers and it’s not Powershop’s doing.

    Any information to help clarify things is appreciated.
    Can you please provide a weblink to the new rates that will open (I’ve already searched for the new rates in the app, but can’t find this. Thanks.

    • Powershop, June 18, 2020:

      Hey Phil – sorry to hear you’re having trouble viewing your new rates. If you follow this link you will be able to view your old and new rates https://secure.powershop.com.au/next_rate – you will need to be logged in to view this. If you’re having any further trouble please give us a call on 1800 462 668 and we can talk you through the changes. Thanks.

  5. David Rich, June 17, 2020:

    Why has the daily supply charge gone up by around 10c as of July 1.
    That seems excessive.
    I would like to have a detailed justification for such a big increase.

    • Powershop, June 18, 2020:

      Hey David – your daily supply charge is impacted by network costs from your distribution network. These are the costs of managing and maintaining the network of poles and wires to transfer electricity to your property. For the average customer, the increase in the daily supply charge will be offset by the decrease in the usage rates, so overall it should be a reduction on the average bill. If you have any more questions please don’t hesitate to give us a call. Thanks.

  6. Diana Solano, June 18, 2020:

    Why is my daily supply charge going up so much? You reduce the all day usage by less than one cent, but raise the daily supply charge by ten cents! I’ll be shopping around.

    • Powershop, June 18, 2020:

      Hey Diana, sorry to hear you’re disappointed. Your daily supply charge is impacted by network costs from your distribution network. These are the costs of managing and maintaining the network of poles and wires to transfer electricity to your property. For the average customer, the increase in the daily supply charge will be offset by the decrease in the usage rates, so overall it should be a reduction on the average bill. Of course, we’d love to still have you as a customer so please give us a call if you feel we can support you further. Thanks.

  7. Greg Dalton, June 18, 2020:

    Looking at the new rates compared to my old rates after taking into account all costs and tariffs I appear to be paying $0.1109 cwhr more

  8. Steve Bowman, June 18, 2020:

    Thats all well and good – my rate drops 1 cent but the Daily Rate goes up 10 cents? So who is fooling who for better deals??

    • Powershop, June 18, 2020:

      Hey Steve – your daily supply charge is impacted by network costs from your distribution network. These are the costs of managing and maintaining the network of poles and wires to transfer electricity to your property. For the average customer, the increase in the daily supply charge will be offset by the decrease in the usage rates, so overall it should be a reduction on the average bill. If you have any more questions please don’t hesitate to give us a call. Thanks.

  9. dave, June 18, 2020:

    i will be paying $6.45c more why??

    • Powershop, June 26, 2020:

      Hi Dave, please give us a call on 1800 462 668 so we can chat through the specifics of your account with you. Thanks.

  10. David Rich, June 23, 2020:

    Regarding my previous query on the 10c increase in the daily supply charge and your reply. Not good enough in this climate. This will force a lot of us to start shopping round. I hope you seriously consider reviewing this increase and push back on Energex. A one cent reduction in the usage charge isn’t good enough either. Looking at the comments of other customers, you should be warned that if your offer isn’t competitive, people won’t hang round. Customer loyalty is derived by not appearing to gouge customers regardless of the rationale. It is your job to push back on those money hungry gold plating rip off.merchants (Energex) demanding a better deal whilst also demonstrating a concerted effort to minimise your own margin grab on top of the said increase. Simply not good enough!!

  11. David Rich, June 24, 2020:

    I see that you guys deleted my earlier post from yesterday in response to my earlier query on your increase to the daily supply charge.

    Your reasoning provided in response to my original enquiry is unfortunately not suprising, nor is it not acceptable or correct. The supply charge and energy charges are two separate issues and should not be related (or compared).

    You should instead be on behalf of customers pushing back on Energex and stating that any such increase on the daily supply charge in this environment in unjustified. The report on the energy sector issued by the ACCC last year indicated that there wasn’t a enough justification for energy wholesalers in QLD to further rely on the reason of “gold plating” the distribution network, as substantial investments in the distribution network had already taken place over the last decade or so.

    I trust you will be undertaking a further review of your charge structure before July 1 and consider putting forward a more fair and reasonable offer for customers.

    A formal response instead would be appreciated instead of simply deleting my comments. I will also screenshot this and previous posts as proof that it was posted awaiting your response; and to ensure you act in good faith in case I choose to pursue this matter further with either the ACCC and or the AER.

    Look forward to hearing back from you!!

  12. David Rich, June 24, 2020:

    For the record I will apologise as my comment posted.on the 23rd June does still appear online (wasn’t showing for some reason when I loaded this page earlier this morning). However my request for a review of your fee structure is still a valid request, along with my request for Powershop to rally on behalf of its customers for a fairer deal and to out pressure on the energy wholesalers to prevent price gouging.

    • Powershop, June 26, 2020:

      Hey David apologies for the confusion, we don’t delete comments – they need to be approved before they’re published on the website in case of spam or coarse language, which can occasionally be delayed. We definitely want you to feel supported by us and trust that we’re doing everything we can to advocate for our customers. Please give us a call on 1800 462 668 – we’d be more than happy to talk through these changes with you.

  13. Darryl Fry, June 24, 2020:

    This was very confusing at first but now I see that our power bills will go up regardless of the meagre discounts proposed. The tarif set by government is an attempt to bring costs down for consumers and that is to be applauded but this is more than offset by the increase in supply charges circumnavigating any benefits offered by state government. Very disappointing profiteering occurs during times of national economic hardship. Sadly fossil fuel companies are offering rates far lower than Powershop.

  14. John Nelson, June 24, 2020:

    If the daily supply charge is caused by network costs then why do different retailers charge different supply charges within the same distribution network?
    The daily supply fee is an excessive impost on householders.

    • Powershop, June 26, 2020:

      Hey John, the daily supply charge is a combination of network costs and retailer costs. This includes our costs for looking after our customers, including managing customer data and billing services, developing tools like the Powershop app and running our award-winning Customer Care team. You can see more about what makes up energy prices here – https://www.powershop.com.au/price-change-2020/what-makes-up-energy-prices/ hope this helps. Feel free to call us on 1800 462 668 if you have any further questions. Thanks.

  15. Sonja Sedmak, June 24, 2020:

    Agree with previous posters. My two daily supply charges (why do I have two?) go up in total by $0.10c, my controlled load goes up by $0.026c and my daily usage goes down by $0.1c. Don’t see any savings here yet you’re implying we’re on a winner. It really bugs me when corporations don’t say what they mean.

    • Powershop, June 26, 2020:

      Hey Sonja, for the average customer the increase in the daily supply charge will be offset by the decrease in the usage rates, so overall it should be a reduction on the average bill. Always depends on your individual circumstances (like usage, distribution network and state) though. Feel free to give us a call on 1800 462 668 and we can chat through the specifics of your account. Thanks.

  16. Jara, June 24, 2020:

    I’m seeing a lot of pretty useless responses here. A lot of us have seen that the increased supply is more than the reduced rate and so we will be paying more. You can’t keep saying “well for some people it will be less” because for us it’s not less. I really like Powershop but it’s frustrating not seeing an answer to the actual question being asked, that’s called a straw man. I’ve been impressed with Powershop’s customer service before, don’t fail me now. Just put an answer here where everyone can see. Why are some of us paying more? If there are people who are paying less, what determines that?

    • Powershop, June 26, 2020:

      Hi Jara, there’s a few variable factors that impact what our customers pay. Firstly, it depends on what distribution network your property is in as each Distributor have their own fees. Next, it depends on what tariff you’re on within that distribution network and of course how much energy you actually use. The daily supply charge is a fixed cost, while usage costs change depending on what each customer actually uses. Hope this helps! Feel free to call us on 1800 462 668 if you have any questions, we’re more than happy to take the time to chat it through with you.

  17. Natalie, June 24, 2020:

    Powershop – you must be well aware that the daily supply charge is an unfair burden on the people who use the least energy. My daily supply charge is more than 50% of my daily rate.
    Your rate changes have increased my daily cost

    While I understand that you have to charge us a daily supply charge because the energy wholesaler is charging you a daily supply charge, have you thought of challenging that model of payment for electricity?

    Why not barrack for the underdog and demand a change to the pricing model?

  18. John Chisari, June 25, 2020:

    So.. the way I see it.. by default, the c/kw goes down, the daily supply charge stays the same. However, based on the mega pack, the % discount changes, something like 5% discount now where it used to be 15%. My solar FIT also goes down to 7c/kw. tell us again how the daily supply charge has been increased by the network.. it’s exactly the same from 1st July, the only difference is the discount given by Powershop. It will be interesting to see the powerpack discount on the 1st July.. 2% if we are lucky? Do the Powershop margins also change on the 1st July?

    • Powershop, June 26, 2020:

      Hey John, we’re sorry to hear you’re disappointed in the new solar FIT and Powerpack discounts. The change to your solar FIT is reflective to changes in the wholesale cost of electricity; while the change in the discounts that Powerpacks give you off your Auto Pay rates are the result of new requirements for all energy retailers on how we calculate discounts. We still want discount Powerpacks to be available to our customers and you can still purchase Powerpacks at the current discount until 11:59pm on 30 June 2020. The discounts secured via Powerpacks before 11:59pm on 30 June 2020 can be applied to your account for your usage post 1 July 2020. If you have any other questions please don’t hesitate to give us a call on 1800 462 668.

  19. Susan Baumann, June 25, 2020:

    I’m confused about the new solar FIT. I think I currently get 12.8c per kWh. Is this the ‘premium rate’? Will I get the new 7c per kWh in addition?

    • Powershop, July 2, 2020:

      Hi Susan, if you qualify for a premium FIT in your state, you’ll receive this in addition to the solar FIT we offer. Feel free to give us a call on 1800 462 668 and we can look into this for you. Thanks.

  20. Bruce Thomson, June 25, 2020:

    I, like others here, am concerned that a 7% decease in the c/kWh charge is being eroded by what looks like a 10% increase in the daily supply charge (if I compare my Mega Pack rates pre and post 1 July).

    Does the independent market regulator have a say in how much the network operator can increase their daily supply charge or is the regulation only in respect of the c/kWh used?

    The frustration here I think is that we are all trying to do our bit for the environment and to keep prices down only to see the distribution network operators take a bigger slice of the pie. Same old story.

    • Powershop, June 29, 2020:

      Hey Bruce, for the average customer the increase in the daily supply charge will be offset by the decrease in the usage rates, so overall it should be a reduction on the average bill. Always depends on your individual circumstances (like usage, distribution network and state) though. We really hear your frustration and we’ll keep working hard to push for a greener energy future. If you’d like to chat through any changes on your account please give us a call on 1800 462 668. Thanks.

  21. Vicki, June 25, 2020:

    I clicked on the link to compare market comparisons and clicked 4 times and never got the info that was promised – just my personal changes. *sigh* Why the hold up with transparency?

    • Powershop, June 29, 2020:

      Hey Vicki – sorry about that, not sure whats going on there. If you give us a bell on 1800 462 668 we can make sure you get all the info you need. Thanks.

  22. Benjamin Jai, June 25, 2020:

    As a non-average customer, is meaningless to just trot out the line “the increase in the daily supply charge will be offset by the decrease in the usage rates, so overall it should be a reduction on the average bill.” – For low energy use customers, who use less than 2 or 3 kw per day, the extra 10c per day on supply charge will nowhere near offset the lower kw/h rate. It will actually be increasing my overall power bills by around 9% !!
    This change disproportionally affects low power consumers.

  23. Brett Courtenay, June 30, 2020:

    Powershop,

    Your replies to the above upset and concerned customers is in no way making any attempt to explain why , what and how in regards to the New prices on July 1st 2020.

    Here are my questions which I would ask you provide the detailed answer to and which will also help EVERYBODY who has contacted you above as well as by phone.

    After July 1st you have DECREASED the Feed in Tariff by more than 30%! Your explanation is that the decrease reflects the FALL in wholesale electricity costs.

    Given the FALL in wholesale electricity to reflect this HUGE decrease in the Feed in Tariff…Please explain why the costs per KW you will be charging after July 1st are down very marginally (less than 5%) and in some case HIGHER!

    The only explanation must be is that Powershop has greatly increased its retail Margins from July 1st and given the over 30% reduction in the feed in tariff shows you are NOT that interested to motivate Solar customers but to exploit them by paying over 30% LESS per KW for Feed in …whilst reducing actual prices paid per KW in usage by less than 5% and others are actually increased!

    If wholesale electricity costs have dropped so much to justify a reduction of 30%+ of the feed in ….where are the large % drops in usage costs per KW to reflect it?

    Or as it seems, Powershop wants to take 2 bites out of the cake then eat it for itself…

    2. You have REDUCED significantly the discounts given on Mega Packs & Power Saver without even mentioning how much they have been reduced to …Why Not? Also, the explanation you give is :

    ” while the change in the discounts that Powerpacks give you off your Auto Pay rates are the result of new requirements for all energy retailers on how we calculate discounts…”

    Explain the Requirement! Are you saying that you are required to not discount rates by 15% for a Mega Pack anymore and only provide a discount of 5-6% for Mega Pack from July 1st??

    Explain please.

    It seems in every case from July 1st …Powershop will be giving customers LESS for their Solar Feed in per KW whilst on all usage costs …will be retaining more profit from customers and making more money whilst only providing customers with negligible cost reductions or even cost increases to their bills.

    Your complete lack of transparency is clearly evident if not dishonest and your explanations have not been in any way correct, honest or satisfactory as they do not answer the many queries in a straightforward manner.

    I look forward to your responses to my queries as posted above , Thank you

    • Powershop, July 2, 2020:

      Hey Brett, completely hear your feedback and happy to answer your questions.

      Your usage rates and what you receive for your solar FIT, while both influenced by the wholesale cost of energy, aren’t directly comparable – which is why there’s a difference between the two. But we’re always working hard to pass on savings to our customers where possible.

      Powerpack discount changes are the result of a ruling from the Australian Energy Market Commission. These new regulations mean that we are required to calculate our discounts differently and as a result, they’re essentially capped to be in line with these new requirements. We already brought this change into effect for our VIC customers back in January and you can now see the new discounts in your shop. Hope this helps, if you have any other questions please give us a call on 1800 462 668. Thanks.

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