Power price changes are just around the corner. Here’s the rundown on the 2025-26 Default Market Offer (DMO) electricity price and what it means for energy bills from July.
The Australian Energy Regulator (AER) has announced its final determination for the 2025-26 DMO electricity price. Prices are on the rise again – by up to $228 in NSW, $77 in QLD and $77 in SA. It’s not all doom and gloom, with real savings available to households who shop around and switch to a better deal. In late 2024, the ACCC analysed the costs of energy plans of over 5 million electricity customers. The watchdog found that more than 80% could save by switching to a cheaper deal.
The DMO increase in each State.
Last year, energy prices in NSW decreased slightly but that was short-lived because of rising network and generation costs. Prices are now on the rise again. From July, residential customers without controlled load will see price increases of between $155 (+8.6%) to $228 (+9.1%) in NSW, depending in their network. Small business customers will see increases of 7.9% to 8.5%.
It’s back to reality in SE Queensland too, after the one-off $1,000 Cost Of Living Rebate took the sting out of power bills in 2024-25. In real terms, households are set to fork out much more for electricity than last year despite the stable price. Compared with 2024-25, households without controlled load will see price increases of $77 (+3.7%). Small business customers will see increases of 0.8%.
Compared with last year, residential customers without a controlled load in South Australia will see price increases of $71 (+3.2%). Small business customers will see increases of 3.5%.
There is something you can do
Clare Savage from the Australia Energy Regulator said, “We know this is not welcome news for consumers in the current cost-of-living environment.” Ms Savage reinforced that better offers below the DMO price are available.
“While the DMO protects consumers on standing offers that can’t or don’t engage in the market, as of this month 90% to 95% of competitive market offers are below the current DMO price. On average, the lowest offers across DMO regions are between 18% and 27% cheaper.”
Ms Savage said, “I strongly encourage all consumers to avoid staying on an old or uncompetitive plan. Contact your retailer to see if you can get a better offer or shop around. At least every 100 days your retailer must tell you on the front page of your bill if they can offer you a better deal.”
2025-26 DMO Electricity Price by network
| Distribution zone | Residential | Residential with controlled load | Small business without controlled load |
| Ausgrid (NSW) | $1,965 (3,900 kWh) | $2,717 (flat rate 4,800 kWh + CL 2,000 kWh) | $4,977 (10,000 kWh) |
| Change vs 24-25 | +$155 (+8.6%) | +$208 (+8.3%) | +$365 (+7.9%) |
| Endeavour (NSW) | $2,411 (4,900 kWh) | $3,072 (flat rate 5,200 kWh + CL 2,200 kWh) | $4,775 (10,000 kWh) |
| Change vs 24-25 | +$188 (+8.5%) | +$271 (+9.7%) | +$353 (+8.0%) |
| Essential (NSW) | $2,741 (4,600 kWh) | $3,211 (flat rate 4,600 kWh + CL 2,000 kWh) | $6,222 (10,000 kWh) |
| Change vs 24-25 | +$228 (+9.1%) | +$280 (9.6%) | +$489 (+8.0%) |
| Energex (SE QLD) | $2,143 (4,600 kWh) | $2,425 (flat rate 4,400 kWh +CL 1,900 kWh) | $4,294 (10,000 kWh) |
| Change vs 24-25 | +$77 (+3.7%) | +$11 (+0.5%) | +$33 (+0.8%) |
| SA Power (SA) | $2,301 (4,000 kWh) | $2,824 (flat rate 4,200 kWh + CL 1,800 kWh) | $5,541 (10,000 kWh) |
| Change vs 24-25 | +$71 (+3.2%) | +$64 (+2.3%) | +$189 (+3.5%) |
Remind me about the Default Market Offer (DMO).
The DMO is the ‘safety net’ price for electricity set by the Energy Regulator for customers on Standing Offers in NSW, SE QLD, and SA. While only 10-15% of households are on Standing Offers, the annual change to the DMO is the “canary in the coal mine” for what’s happening to electricity prices. The DMO aims to protect consumers from unreasonably high prices while enabling retailers to cover costs. When the Default Offer increases rates for plans with the “regulated” margin, expect competitive market offers with tighter margins to rise as well.
So why are energy costs changing this time?
The Regulator outlines where the cost increase comes from: retailers, networks and generators, the weather and the broader economy.
While retail costs are a minor component of the DMO (around 11% to 16% for residential customers and 6% to 9% for small businesses), these have increased significantly since last year. The reason for this is the growing costs reported by retailers, including bad and doubtful debts and implementation of smart meters (We haven’t forgotten that “metering” is a responsibility the Regulator shifted from the network to retailers. Who’d have thought that having 30 retailers managing metering in each distribution area might cost more than having one network doing it! Some retailers have also increased spending on acquiring and retaining customers.
Wholesale costs account for about 31% to 45% of the DMO prices and saw increases of 1.5% to 10% from last year, depending on the region. Increases were because wholesale energy contract prices rose over the year. Spot prices increased due to more high-price events resulting from various factors, including high demand, coal generator and network outages, and low renewable generation output.
Network costs are also a big component of DMO prices, comprising around 33% to 48% of DMO prices. In May 2025, the AER approved network tariff prices from each distribution network service provider (DNSP). This led to changes in the network component of the DMO, ranging from a reduction of 6.8% (Energex) to an increase of 11.1% (Endeavour Energy) since last year. Costs increased in all networks.
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 significantly below the Default Offer.
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.