ACOSS strongly welcomes Minister Bowens announcement today to review the electricity Default Market Offer (DMO)* to better protect people from unreasonable electric price rises.
ACOSS CEO, Cassandra Goldie said "We strongly welcome the review of the DMO. It must be reformed to act as a proper safety and not a cap on market prices.
This includes calculating the DMO based on an "efficient" and "fair" price for an essential service rather than a "reasonable" price that benefits retailers.
"Large energy retailers are making enormous profits while people are struggling with energy debt, putting food on the table and keeping their homes cool in summer and warm in winter.
"Our sector have been calling for these reforms and we warmly welcome the Governments actions"
*The DMO is a maximum price that retailers can charge electricity customers on default contracts known as standing offer contracts. It sets a benchmark for market offers by retailers. If DMO goes up market offers usually follow.
