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Home / Energy insights / The Default Market Offer: what’s to know?

The Default Market Offer: what’s to know?

Electricity 1 min read June 24, 2019

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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