Default Market Offer 2024-25: Wholesale energy and environment cost estimates for DMO 6 Final Determination

Client: Australian Energy Regulator


ACIL Allen was engaged by the Australian Energy Regulator (AER) to support the AER in estimating specific cost inputs required for the determination of Default Market Offer (DMO) prices. Specifically, ACIL Allen was required to provide consultancy services to the AER to estimate the underlying wholesale and environmental cost inputs to inform the determination for 2024-25 (DMO 6).

These estimates were based on the relevant cost drivers for a retailer supplying electricity to residential and small business customers in non-price regulated jurisdictions (excluding Victoria).

The report provides estimates of the wholesale energy, environmental, and other costs for use by the AER in its Final Determination for DMO 6, using the methodology in our Draft Determination report to the AER, as well as considering stakeholder feedback in response to the AER’s Draft Determination.

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