The Australian Energy Regulator (AER) has today announced its final determination for the 2024-25 DMO electricity price. The good news is electricity prices rises are on pause – with a small decrease!
The Default Market Offer aka the DMO caps the price retailers can charge household and small business customers on safety-net retail plans in South Australia, New South Wales, and SE Queensland. Less than 10% of households are actually on the DMO. But, it’s a strong indicator of what’s happening with power prices for all customers.
What can we expect?
Retailers are getting ready to send out price changes to their customers in June and July. They’ll also be updating their new customers’ offers from July 1st, so it’s good to have a sense of what’s coming up. While customers on market offers aren’t guaranteed to receive the same treatment, they should be anticipating only small changes to their rates.
Compared to last year, NSW residential customers on the 2024-25 DMO electricity price will see a decrease of around 1%. Small business customers will see bigger decreases of 1% to 8%.
In SE Queensland there are cost increases of around 4% for residential customers on DMO electricity prices. Small business customers can expect a 1% increase. The Queensland and Australian governments have announced financial assistance with rebates to more than offset these increases.
South Australian residential customers without controlled load on the default offer will experience price falls of around 3%. Small business customers will see a decrease of 9%.
2024-25 DMO Electricity Prices
| Distribution zone | Residential | Residential with controlled load | Small business without controlled load |
| Ausgrid (NSW) | $1,810 (3,900 kWh) | $2,495 (flat rate 4,800 kWh + CL 2,000 kWh) | $4,597 (10,000 kWh) |
| Change vs 23-24 | -$17 (2-0.9%) | -$67 (-2.6%) | -$402 (-8.0%) |
| Endeavour (NSW) | $2,209 (4,900 kWh) | $2,787 (flat rate 5,200 kWh + CL 2,200 kWh) | $4,407 (10,000 kWh) |
| Change vs 23-24 | -$19 (-0.9%) | -$190 (-6.4%) | -$191 (-4.2%) |
| Essential (NSW) | $2,499 (4,600 kWh) | $2,918 (flat rate 4,600 kWh + CL 2,000 kWh) | $5,718 (10,000 kWh) |
| Change vs 23-24 | -$28 (-1.1%) | -$59 (-2.0%) | -$43 (-0.7%) |
| Energex (SE QLD) | $2,052 (4,600 kWh) | $2,400 (flat rate 4,400 kWh +CL 1,900 kWh) | $4,246 (10,000 kWh) |
| Change vs 23-24 | +$83 (+4.2%) | +$37 (+1.6%) | +$44 (+1.0%) |
| SA Power (SA) | $2,216 (4,000 kWh) | $2,746 (flat rate 4,200 kWh + CL 1,800 kWh) | $5,337 (10,000 kWh) |
| Change vs 23-24 | -63 (-2.8%) | -$41 (-1.5%) | -$512 (-8.8%) |
Wholesale prices down. Network costs up.
What’s interesting is what’s happening under the covers of your energy bill. The massive spikes on households’ energy bills over the last two years were driven by shocks in demand for fossil fuels that power coal and gas generators. Since then, wholesale energy costs have stabilised. Futures contract prices are down by between 39% and 48% since the spikes of 2022. Wholesale energy costs have decreased by approximately 21% in South Australia and between 7% and 11% across NSW. However, in SE Queensland, wholesale costs are static (-0.2%).
“The easing in wholesale prices has been offset by the pressures currently observed in the poles and wires – network prices,” said AER Chair Ms Clare Savage.
Across all 5 networks there were increases for residential customers ranging from 6% (Essential Energy) to 16% (Ausgrid).
“The combined effect of these various changes in costs have resulted in prices decreasing in New South Wales and South Australia, and increasing in South East Queensland,” Ms Savage said.
Getting a better deal.
Typically, significant savings are available to households when they shop for the cheapest market offer. There are a range of prices for market offers available for new customers, which are usually priced below the Default Offer.
Check your plan once a year
A big watch out is the price of market offers for existing customers. Over time, rates charged to existing customers can creep up. In 2023, the ACCC analysed the costs of energy plans of over 5 million electricity customers. Our national corporate watchdog found that around half were paying the same or more than the Default Offer.
This is why households should check their energy costs annually against the best offers to make sure their pricing is fair. While retailers are required to advise on each bill, if a cheaper plan may be available, not enough people are taking this up. If you don’t ask, you don’t get the savings.
Compare and save
Finding a better deal starts with comparing all retailers’ current offers to your current energy plans and making a change. Once you know the best deals, you can ask your current retailer to improve your offer or switch to a cheaper retailer. You can start your comprehensive comparison here with WATTever.