Draft determination - Default market offer prices 2025–26 - Wholesale energy and environment cost estimates

ACIL Allen has been 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 is required to provide consultancy services to the AER to estimate the underlying wholesale and environmental cost inputs to inform the determination for 2025-26 (DMO 7). 

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

This report provides estimates of the wholesale energy, environmental, and other costs for use by the AER in its Draft Determination for DMO 7, using the methodology in our Final Determination report to the AER for DMO 6, as well as considering stakeholder feedback in response to the AER’s Issues Paper.