'I don't think it's working': electricity bill pricing set for overhaul
Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges.
Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia.
But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans.
"The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne.
"However, I'll be frank. I don't think it's working that way and reform is needed."
Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills.
"It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18.
"We know it could be so much simpler."
Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1.
"Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say.
Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down.
"The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference.
The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey.
Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures.
Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges.
Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia.
But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans.
"The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne.
"However, I'll be frank. I don't think it's working that way and reform is needed."
Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills.
"It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18.
"We know it could be so much simpler."
Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1.
"Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say.
Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down.
"The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference.
The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey.
Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures.
Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges.
Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia.
But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans.
"The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne.
"However, I'll be frank. I don't think it's working that way and reform is needed."
Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills.
"It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18.
"We know it could be so much simpler."
Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1.
"Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say.
Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down.
"The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference.
The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey.
Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures.
Electricity bills could get cheaper for many households and small businesses under a planned overhaul of the safety net system that sets caps on charges.
Bills are set to rise again from July 1 after the Australian Energy Regulator (AER) approved increases of up to 9.7 per cent for some residential customers across NSW, south-east Queensland and South Australia.
But the Climate Change and Energy Minister, Chris Bowen, is expected to announce a review of the "default market offer" pricing system that sets a limit on how much more energy retailers can charge under standard plans.
"The DMO [default market offer] was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he plans to tell the 2025 Australian Energy Week conference in Melbourne.
"However, I'll be frank. I don't think it's working that way and reform is needed."
Mr Bowen will point out the "vast majority" of customers - 80 per cent - could be getting a better deal on their bills.
"It's difficult to defend the DMO when the customer is required to do the deal hunting," he is expected to say in a speech at the Melbourne Convention and Exhibition Centre on June 18.
"We know it could be so much simpler."
Mr Bowen is set to announce the federal government will reform the default market offer scheme in 2026 to "get the best deal for customers" and align it with those in other areas like Victoria where bills are approved to rise by just one per cent from July 1.
"Changes could include stripping out the DMO's competition allowance and putting further restraints on what retailers can claim back from customers in their bills," he plans to say.
Mr Bowen will say the changes would better reflect Australia's changing electricity grid, including the rise in rooftop solar and home batteries, to help encourage more renewables and push prices down.
"The longer expensive coal and gas keep setting the price - the longer bills will be higher than they should be," he proposes to tell the conference.
The minister will also suggest Australia is in a "serious and strong position" to win hosting rights for the annual United Nations climate talks, COP31, in 2026 after ongoing private discussions with rival bidder Turkey.
Labor pledged during the federal election campaign to extend energy bill rebates for households to help combat cost of living pressures.
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