Guide
The reference price every plan quotes.
Energy plans advertise how much cheaper they are than a "reference price". Here's what that number is, and what it does and doesn't tell you.
What the reference price is
Each year, regulators set a benchmark price for electricity in each distribution area:
- the Default Market Offer (DMO), set by the Australian Energy Regulator for New South Wales, south-east Queensland and South Australia;
- the Victorian Default Offer (VDO), set by the Essential Services Commission for Victoria.
It also caps what retailers can charge customers on a standing offer, the default plan for people who haven't chosen one.
Why plans quote it
Retailers must state their prices against the reference price, as a percentage below or above it, for a typical household's usage in that area. It gives everyone the same yardstick.
What it does and doesn't tell you
- It does let you compare plans' headline prices on one scale.
- It doesn't tell you what you'll pay. It's calculated on an assumed usage, not yours. A plan that's 20% below the reference price for a typical home can be dearer for yours, especially with solar, a battery or unusual usage times.
That's why the Wizard prices every plan on your own bill instead. How we compare plans.
General information, not personal financial advice. Plan rules differ by state and retailer: check a plan's own fact sheet before you sign up.
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