Last updated: 16 October 2026 · Reading time: 8 minutes
The default market offer (DMO) and the Victorian Default Offer (VDO) are two regulator set electricity prices that most people only hear about when a bill arrives. They matter to first home buyers because moving into a new home without choosing an electricity plan can put you on a standing offer. This guide explains what each offer is, how they differ, and how to check and compare plans using the official government sites. It gives no prices, because they change each year.
This guide is general information only and does not consider your personal circumstances. Check the regulator pages linked below for current details.
What is the default market offer?
The default market offer is an electricity price set by the Australian Energy Regulator (AER). It is the maximum price retailers can charge residential and small business customers on a standing offer contract for electricity. It applies in South Australia, New South Wales and South East Queensland.
The AER's default market offer page says the DMO protects people who are unable or choose not to sign up to a market plan. Each year on 1 July the DMO annual price is locked in for 12 months. The AER published its final determination for 2026 to 2027 on 26 May 2026, according to its 2026 to 2027 project page.
The DMO is also a comparison price. The AER says retailers must show how their plans compare to the DMO in all advertising and promotion, so you can see how a market plan relates to the default. The AER also says the DMO may not be the cheapest plan available.
What is the Victorian Default Offer?
The Victorian Default Offer is an electricity price set by the Essential Services Commission (ESC), not by energy companies. Each year the ESC sets it after assessing efficient costs. It is designed to give simple, trusted and reasonably priced options, though it is not necessarily the lowest price on the market.
The ESC's Victorian Default Offer page says most households can ask for the VDO, as can small businesses using under 40 MWh a year, and retailers must offer it on request. It is also the reference price retailers must use when they advertise discounts on market offers. The current tariffs apply from 1 July 2026 to 30 June 2027.
What is the difference between the DMO and the VDO?
The DMO is set by the AER and covers South Australia, New South Wales and South East Queensland. The VDO is set by the ESC and covers Victoria. Both are regulator set reference prices for electricity, both reset each year, and neither is a promise of the lowest price.
| Feature | Default market offer (DMO) | Victorian Default Offer (VDO) |
|---|---|---|
| Who sets it | Australian Energy Regulator | Essential Services Commission |
| Where it applies | South Australia, New South Wales and South East Queensland | Victoria |
| When it changes | Locked in for 12 months each 1 July | Set each year, with current tariffs from 1 July 2026 to 30 June 2027 |
| Who can get it | Residential and small business customers on a standing offer | Most households and small businesses (under 40 MWh a year), on request |
| Role in advertising | Comparison price retailers must show | Reference price for advertised discounts |
Sources: AER, The Default Market Offer, and Essential Services Commission, Victorian Default Offer, both checked 16 October 2026.
What is a standing offer for electricity?
A standing offer is the basic electricity contract a retailer must supply when you have not chosen a market plan. Its price is capped by the DMO or, in Victoria, set by the VDO. People often end up on one by default rather than by choice, which is why it matters to check.
The AER says you might be on a standing offer if you never switched to a market offer. The ESC lists several situations where a standing offer applies in Victoria:
- you never signed up to a contract
- you cancelled a contract during the cooling off period
- you moved into a new address and use electricity without entering into a contract
- you asked for a standing offer
- your market offer ended
What is the difference between a market offer and a standing offer?
A market offer is a plan a retailer designs and prices itself, which you choose to sign up to. A standing offer is the default contract with a regulator set price cap. Both are real contracts, but a market offer is one you actively picked from the options available.
| Feature | Market offer | Standing offer |
|---|---|---|
| How you get it | You choose and sign up to a plan | You never chose a plan, or a plan ended, or you asked for one |
| Price | Set by the retailer, and shown against the DMO or VDO in advertising | Capped by the DMO, or set by the VDO in Victoria |
| Is it the cheapest? | Varies by plan | Not necessarily, say both regulators |
Sources: AER, The Default Market Offer, and Essential Services Commission, Victorian Default Offer, both checked 16 October 2026.
Can moving into a new home put you on a standing offer?
Yes, it can. Both regulators list moving into a new address without choosing a plan as a way people end up on a standing offer. If you buy a home and start using electricity without contacting a retailer, you may be supplied by the existing retailer on its default contract.
The AER says you might be on a standing offer if you "move to premises and are supplied by the existing retailer but are yet to make contact with a retailer". The ESC says a standing offer applies if you "moved into a new address and use electricity without entering into a contract". That is a common situation for first home buyers, who have a lot to organise around settlement. Our guide on what happens on settlement day lists the checks to complete before you collect the keys, and our guide on how to connect utilities before you move in covers the connection side.
How do you check whether you are on a standing offer or a market offer?
The simplest way is to ask your retailer which type of contract you are on, or to look at your account or bill. If you moved in and never chose a plan, or a plan has ended, a standing offer is possible. The regulators describe when they apply, but your retailer confirms your contract.
- Ask your retailer. Ask whether your plan is a market offer or a standing offer, and what the terms are.
- Think back to how you started. Did you choose a plan, or did you just start using power after moving in?
- Check whether a plan has ended. The ESC says a standing offer can apply when a market offer ends.
- Compare against the official sites. Use the comparison sites below to see how your current plan sits against others.
Is the default market offer the cheapest electricity plan?
No, not necessarily. The AER says the DMO may not be the cheapest plan, and the ESC says the VDO is not necessarily the lowest price. They are regulated prices and reference prices, so a market offer can be priced above or below them. The AER encourages consumers to shop around for better deals.
That is why both regulators describe the DMO and VDO as protection for people who are unable or unwilling to engage with the market, rather than as the best available deal. This guide does not quote prices because they differ by region, tariff type and year, and the regulators publish them.
How do you switch energy provider?
To switch, compare plans on an official comparison site, pick a plan, then sign up with the retailer you choose. Energy Made Easy, the AER's free independent comparison site, covers New South Wales, Queensland, South Australia, Tasmania and the ACT. The ESC calls Victorian Energy Compare the Victorian Government's free, independent comparison tool. Check a plan's conditions before you sign.
- Compare plans. The AER's Energy Made Easy is free and covers New South Wales, Queensland, South Australia, Tasmania and the ACT. In Victoria, the ESC points to Victorian Energy Compare, the Victorian Government's comparison tool.
- Read the plan details. Check the contract length, fees, conditions and how the price compares with the DMO or VDO.
- Sign up with the retailer you choose. Read the contract, including its start date and cooling off period, before you agree.
- Keep an eye on the end date. If a market offer ends, you may be moved to a standing offer, so note when your plan finishes.
Our Insurance Hub has an energy section where you can open a guide to the basics, then compare electricity plans through our partner.
What about states outside the DMO and VDO?
The DMO covers South Australia, New South Wales and South East Queensland, and the VDO covers Victoria. Western Australia, Tasmania, the Northern Territory, the ACT and regional Queensland have their own arrangements. Energy Made Easy also lists plans for Tasmania and the ACT. Check your state or territory government or energy regulator for how electricity prices work where you live.
This guide has not checked those schemes in detail, so it does not describe them. If you are buying in one of those places, look up your own state or territory's rules before you rely on anything here.
How does electricity fit into buying your first home?
Electricity is one of several household accounts that start when you take over a home. Buyers often meet three questions around settlement: which retailer supplies the address, whether a plan has been chosen, and when that plan ends. Our guide to the yearly cost of owning a home shows where electricity sits in a household budget.
If you are still saving, how much deposit you need to buy a house sets out the costs that come first, well before the first power bill.
This article is general information only and does not consider your personal circumstances. It describes the default market offer and Victorian Default Offer as published by the Australian Energy Regulator and the Essential Services Commission on the dates shown. It contains no prices, savings estimates or advice to switch. Electricity rules and prices change each year and differ by state, so verify current details with the AER, the ESC, Energy Made Easy, Victorian Energy Compare or your retailer. NestPath is not an energy retailer, broker or financial adviser.
