The Australian Energy Regulator (AER) and the Essential Services Commission (ESC) have released their final decisions on the Default Market Offer (DMO) and Victorian Default Offer (VDO) for the 2024-25 period. But what do these changes mean for your business, and how can you turn them into an advantage?
Understanding the DMO and VDO: What Every Australian Business Needs to Know
The Default Market Offer (DMO) acts as a safety net against inflated electricity prices for households and small businesses in South Australia, New South Wales, and South-East Queensland. Similarly, the Victorian Default Offer (VDO) protects consumers in Victoria, providing a regulated benchmark price for electricity.
These offers set a ceiling on the prices that electricity retailers can charge, ensuring fair rates and protecting your business from overpaying in a volatile market. Knowing these benchmarks is essential for making informed decisions about your energy needs.
What’s New for the 2024-25 Energy Rates?
Default Market Offer (DMO)
For many small businesses, the 2024-25 DMO will bring a welcome reduction in electricity bills, with expected decreases ranging from 1% to 9%. However, some businesses might see slight increases, depending on their region, with potential rises of around 1%.
Victorian Default Offer (VDO)
Small businesses in Victoria are likely to benefit from a 7% reduction in their average annual electricity bill, translating to a saving of about $261 compared to the 2023-24 period. The most substantial reduction will be seen in the AusNet zone, where businesses can expect an average savings of $386.
These rate adjustments are primarily driven by changes in electricity network and wholesale costs, reflecting the ongoing efforts to stabilize the market after years of volatility. As AER Chair Clare Savage remarked, “We understand that cost-of-living pressures are a priority for many households and small businesses, and we will continue to protect customers from unjustifiably high prices.”
How Your Business Can Maximize Savings: Flipr's Expert Tips
Handling energy price changes effectively requires strategic planning. Here’s how Flipr can help your business stay on top of these changes:
1. Compare Energy Plans Regularly
Ensure your business is on the most competitive energy plan available. Even in a challenging economic climate, some retailers offer better deals than others. Regularly comparing energy plans can lead to substantial savings.
2. Get Expert Energy Advice from Flipr
Consult with Flipr’s energy market experts for personalized recommendations based on your business’s unique needs and usage patterns. As AER Chair Clare Savage emphasized, “Shopping around remains the best way to get the best price.” Don’t stick with a default or standing offer—over 152,000 small Australian businesses are still on default market rates. Most are not locked into their plans, meaning you can switch to a more competitive offer at any time.
3. Take Advantage of Seasonal Opportunities
Many Australian energy retailers reassess their plans around July 1, often introducing new offers that include competitive rates, discounts, or welcome credits. This is an excellent time to explore what’s available and switch to a plan that better suits your needs.
Stay Ahead of Energy Price Changes with Flipr
Don’t let energy price fluctuations catch your business off guard. Stay informed, compare your options, and make the switch to a plan that better meets your needs with Flipr.
What’s Your Next Move?
At Flipr, we specialize in finding the most competitive energy rates for Australian businesses. Our team of Energy Experts is dedicated to helping you navigate energy price changes smoothly and secure the best deal available.
Want to see if your current rates are competitive? Fill out the contact form below, and let Flipr help you find a better energy plan today.
