Australians are set to take another hit to their finances with news today annual electricity bills could increase by as much as $200 for an average household from 1 July, if the draft default prices announced by the energy regulators are implemented.
The news comes as the government prepares to make its fourth and final electricity rebate installment into the majority of people’s accounts from 1 April.
The Australian Energy Regulator (AER) has today announced its Default Market Offer (DMO) will potentially rise by between $114 and $200 (5.1% and 8.8%) over the next financial year for average households in New South Wales, south east Queensland and South Australia, based on a standard electricity plan (that is, without a controlled load).
Households in Victoria are set to fare better. The Essential Services Commission (ESC), which regulates electricity prices in Victoria, has also today announced its draft Victorian Default Offer (VDO) which, if finalised as is, could see the annual bill for an average household change by between a drop of $19 through to a rise of $68.
These prices are updated annually and reflect the maximum price electricity retailers can charge customers on default contracts, otherwise known as ‘standing offers’.
While only a small percentage of customers are on standing offers, retailers also provide market offers, which are often more competitive but may still be impacted by these changes.
See what pricing changes could be coming in your state from July 1:
Draft DMO for NSW
NSW drafted default offer prices for residential customers (single-rate only)
| Distribution Network | 2025-26 Draft DMO Prices | Annual Change |
|---|---|---|
| Ausgrid | $1,969 | +$159 (+8.8%) |
| Endeavour Energy | $2,397 | -$174 (+7.8%) |
| Essential Energy | $2,713 | +$200 (+8.0%) |
Source: AER. Prices are estimates for the 2025-26 financial year based on residential property without a controlled load. Electricity usage is based on an average household as determined by the regulator and varies across the networks.
Draft DMO for SEQ
SEQ drafted default prices for residential customers (single-rate only)
| Distribution Network | 2025-26 Draft DMO Prices | Annual Change |
|---|---|---|
| Energex | $2,185 | +$119 (+5.8%) |
Source: AER. Prices are estimates for the 2025-26 financial year based on residential property without a controlled load. Electricity usage is based on an average household as determined by the regulator and varies across the networks.
Draft DMO for SA
SA drafted default prices for residential customers (single-rate only)
| Distribution Network | 2025-26 Draft DMO Prices | Annual Change |
|---|---|---|
| SAPN | $2,344 | +$114 (+5.1%) |
Source: AER. Prices are estimates for the 2025-26 financial year based on residential property without a controlled load. Electricity usage is based on an average household as determined by the regulator and varies across the networks.
Draft VDO for VIC
VIC drafted default prices for residential customers (single-rate only)
| Distribution Network | 2025-26 Draft VDO Prices | Annual Change |
|---|---|---|
| AusNet Services | $1,883 | -$19 (-1%) |
| CitiPower | $1,524 | +$68 (+5%) |
| Jemena | $1,680 | +$16 (+1%) |
| Powercor | $1,680 | +$19 (+1%) |
| United Energy | $1,569 | +$15 (+1%) |
Source: ESC. Average bill for domestic customers 4000kWhr/yr. Based on domestic flat tariffs.
What happens next?
The two regulators will now consult before finalising the prices on 24 May for Victoria and 26 May for NSW, south East Queensland and South Australia, before implementing the new benchmark prices from 1 July 2025.
Compare current electricity offers in your state
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Price hikes could be even higher if history is anything to go by
Today’s announcements from the AER and the ESC are draft decisions and could rise further following consultation.
Canstar Blue analysis shows that over the last six years of AER price determinations across the five networks it regulates, 67% of the final prices have been higher than the proposed draft price.
Using the 2024 – 2025 pricing process as an example, four of the five finalised reference prices from the AER were higher than the originally proposed price, in one case by up to $44.
Difference in draft DMO vs final DMO: 2024 – 2025
| Distributor | Draft DMO | Final DMO | Difference |
|---|---|---|---|
| Ausgrid | $1,773 | $1,810 | +$37 |
| Endeavour Energy | $2,185 | $2,223 | +$38 |
| Essential Energy | $2,549 | $2,513 | -$36 |
| Energex | $2,022 | $2,066 | +$44 |
| SA Power Networks | $2,222 | $2,230 | +$8 |
Source: CanstarBlue.com.au. Prices are for residential flat rate without controlled load.
How has the DMO / VDO changed over the last few years?
The standing offer electricity prices dropped last year (2024-25) for all but one network compared to the year before (2023-24).
However, in 2023-24 the standing offer prices recorded yearly increases of more than 20% for some networks, resulting in a dollar increase of more than $400.
Change to DMO / VDO annual pricing per capital city
What is a standing offer and how does it impact consumers?
A standing offer works as a safety net for customers who cannot, or have not, recently changed providers or updated their electricity plans. All electricity providers in these jurisdictions must offer these plans as the default option.
Additionally, these standing offers are used as a reference price to help consumers compare the cost of different plans. When promoting the price of a particular plan, a retailer must include a comparison to the reference price – for example – ‘15% less than the reference price’.
According to the AER, just 8.1% of households in its jurisdictions are on standing offers. While the majority of customers are on market plans which are typically cheaper, it is possible for customers to be on plans that are above the reference price.
Customers do not have to wait three and a half months to shop around
Canstar Blue shows a Sydney-based household could potentially save up to $386 a year or roughly $32 a month by switching from the average-priced plan to one of the cheapest.
Note: monthly cost is an estimate and will fluctuate based on factors such as seasonality.
While the goal posts can and do move regularly in the electricity sector, switching now could create a buffer in your budget for when the next round of price changes hit.
| City | Distributor | Average annual cost | Cheapest annual cost | Potential savings |
|---|---|---|---|---|
| Sydney | Ausgrid | $1,685 | $1,299 | $386 |
| Melbourne | Citipower | $1,355 | $1,036 | $319 |
| Brisbane | Energex | $1,984 | $1,539 | $445 |
| Adelaide | SA Power Networks | $2,172 | $1,747 | $425 |
| Hobart | TasNetworks | $1,269 | $1,130 | $139 |
| Canberra | Evoenergy | $2,292 | $1,848 | $444 |
Source: www.canstarblue.com.au – 10/03/2025. Based on single-rate electricity plans on Canstar’s database; excluding solar-only plans. Annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discounts offered (if any) have been met. Representative customer based on the reference usage for NSW, VIC, QLD, ACT, and SA (per Victorian Default Offer for VIC, ICRC for ACT and AER for others) or the median usage in the Office of the Tasmania Regulator’s report, Typical Electricity Customers in Tasmania 2022 for TAS.
Canstar Blue data insights director, Sally Tindall, says, “This is not welcome news amidst a cost of living crisis.”
“Today’s draft prices released from the AER are a disappointing blow for households in New South Wales, south east Queensland and South Australia.
“Customers on standing offers on the Essential Energy network in NSW could see their bills rise by up to $200 over the next financial year if this draft determination from the AER is finalised as is.
“The concern is, these draft prices released from the AER today could rise further following the consultation phase. Last year, four of the five finalised reference prices from the AER were higher than the originally proposed price, in one case by up to $44.
“Victorians have comparatively dodged a bullet, with the average annual prices on a default offer potentially set to change from between a drop of $19 to a rise of $68. While any price rise puts additional financial pressure on households, hopefully those families feeling the pinch can offset an increase to their bill next financial year by shopping around.
“This news comes in the lead up to the end of the federal government’s electricity rebate and news of health insurance price increases from 1 April. That’s in addition to the continued increase in the cost of everyday essentials, most of which are still on the rise.
“Electricity price rises impact pretty much everyone but they hurt those on lower incomes the most as these households are shelling out more of their income to keep the lights on.
“If your budget is wearing down to the wire, take action now while you have time on your side.
“The savings from switching electricity providers could be the difference between clearing your winter electricity bill versus having to ask your provider about hardship options.”
Share this article