Why the DMO reform?
The Default Market Offer (DMO) is a regulated tariff cap for residential and small business electricity customers on standing-offer contracts in New South Wales, South Australia and south-east Queensland. The Default Market Offer (DMO) was introduced on 1 July 2019 following recommendations from the Australian Competition and Consumer Commission (ACCC). It was developed in response to concerns about the so-called “loyalty tax”, where customers remaining on standing-offer plans were paying more than they might have otherwise.
In June 2025, the federal government announced a review of the DMO framework to assess how well it continues to protect customers who are less active in the market. The review also examined whether standing offers reflect the efficient cost of supplying electricity and considered extending similar protections to customers living in embedded networks.
One outcome of that review is the proposal of the Solar Sharer Offer (SSO) a new regulated standing-offer variant designed to ensure more consumers share in the benefits of the daytime solar-generation boom.
What is the Solar Sharer Offer (SSO)?
In essence: the SSO would require retailers in DMO-jurisdictions to offer a standing-offer plan that includes a defined window each day during which electricity usage is charged at $0 / kWh.
Key features:
- Initially proposed to apply from 1 July 2026 in NSW, SA and SE Queensland (the current DMO jurisdictions). DCCEEW
- Households must have a smart meter to participate (because a time-of-use window must be measured).
- Under the SSO, the “free usage window” aligns with times of high solar generation on the grid (typically midday) when wholesale prices are low or even negative.
- Although the “free” usage window applies, other charges (like the daily supply charge) and usage outside the free window still apply.
- The policy objective is not just lower bills for individuals, but also smoother demand curves for the grid (i.e., shifting demand away from evening peaks) and more equitable sharing of solar-generation benefits (including for renters or homes without rooftop solar).
How does this affect DMO consumers?
If you are a household in NSW, SA or SE Queensland on a standing offer (or one you could move to) this is what you should consider:
Potential benefits
- Access to free electricity during the designated window means you can run high-consumption appliances, charge an EV or battery, or heat water without paying usage charges for that time.
- Even households without rooftop solar can benefit the aim is to give more people access to low-cost daytime power, not just those with solar installations.
- If enough households shift their usage into the free window, this could create system-wide benefits. lower wholesale and network costs, fewer costly grid upgrades, and potentially lower bills for everyone over time. WattClarity
What you’ll need to do
- Check whether you have a smart meter. If not, you may need to ask your retailer to install one so you can benefit from a time-of-use offer like this. Smart meters are being rolled out more widely across the National Electricity Market.
- Consider your daily usage profile: If most of your electricity is used in the evening (for example cooking, heating, entertainment), you’ll need to shift significant loads into the free window to maximise benefit. If you can’t shift, savings will be less.
- Read the full plan details carefully: while usage might be free during the window, supply charges (fixed daily fees) still apply, and usage outside the free window will still be billed at standard rates. Ensure you compare like-for-like.
- Monitor your behaviour: Using timers, or shifting appliance usage (dishwasher, washing machine, EV charging) into the free window will help. If you don’t change habits, the benefit will be lower.
Things to watch out for
- The exact hours of the free window have not yet been finalised. Some media mention “at least three hours”.
- The plan focuses on households on standing offer contracts. If you’re already on a competitive market offer, you’ll need to check whether switching to an SSO-type standing offer genuinely improves your bill.
- Higher usage or higher rates outside the free window could offset the benefit if your consumption is heavily weighted outside the window.
- If you have rooftop solar and you export daytime generation, you’ll still need to check how the free window interacts with your feed-in tariff, and whether shifting usage means you export less (and earn less) — so the net effect may vary.
Why this matters for your money
Electricity is an essential service and a core household cost. Reforms like the DMO and SSO directly affect affordability, transparency and fairness in the energy market. Because households make choices (or often don’t switch plans) based on complex tariffs, smart meter technology, and behaviour change — it’s important that the policy is understandable, neutral, and empowers consumers to act in their best interest.
From a consumer-protection and regulatory compliance perspective:
- The reform is being led by the Australian Energy Regulator (AER) and the Department of Climate Change, Energy, the Environment and Water (DCCEEW) via the consultation process. Australian Energy Regulator (AER)
- The DMO reform outcomes paper sets a new objective for the DMO: “to protect small customers on standing offers and small customers in embedded networks by providing a fair, trusted and reasonably priced electricity offer which reflects the efficient cost of supplying an essential service.”
- The SSO is being introduced under regulatory conditions, with public consultation on design, tariff structure, consumer protections, and rollout timing.
What you should keep in mind
When writing for your audience of everyday Australian consumers in your role at Econnex Comparison, consider emphasising:
- Eligibility: Who can access the SSO (standing offer customers in certain states, with a smart meter)
- Timing: When it kicks in (1 July 2026 target) and which states are included initially (NSW, SA, SE QLD)
- Behavioural shift: How a household can benefit by shifting consumption; and how households that can’t shift much may benefit less
- Cost transparency: Highlight that supply charges still apply, the free window may not suit every household, and that full plan terms matter
- Comparative context: That this is under the regulated standing-offer framework not a guarantee of biggest savings for every user and consumers should compare it with market offers
- System-wide benefit: Emphasise the broader grid and fairness reasons behind the policy (including access for renters and households without rooftop solar)
- Consumer protections: Note that this is a regulated reform and subject to consultation; ensure readers understand the implementation is not yet complete and details may change
- Call to action: Encourage households to check whether they have a smart meter, understand their usage profile, and monitor the rollout in their region.
Summary in brief
The DMO reform and introduction of the SSO represent a meaningful shift in how electricity standing offers are regulated with the dual objective of making sure everyday consumers are treated fairly and that the benefits of increased solar generation are more widely shared. For many households that can adjust when they use power (especially during the day), the SSO offers promise of a free-usage window. But it’s not a one-size-fits-all solution outcomes will depend on meter type, usage habits, supply charges and how the free window is structured. As the rollout approaches, consumers should prepare, compare plans and stay informed.
