Power bills to drop on Australia’s east coast after final Default Market Offer

Power prices are set to fall across Australia’s east coast after the new default prices for electricity showed reductions for households across the country.

The Australian Energy Regulator’s final Default Market Offer (DMO) for flat rate residential customers shows an annual reduction between 3.4 per cent ($66) and 5.0 per cent ($137) in NSW and by 7.2 per cent ($155) in South East Queensland compared with last year.

Flat rate prices in South Australian households will increase by 1.4 per cent ($33) for households.

For smart meter households on a time of use standing offer, there are savings across all three regions where the DMO applies.

For households and small businesses in South Australia, bills will decrease by 1.1 per cent ($25) or 20.9 per cent ($673) respectively, while in South East Queensland they will drop by 10.7 per cent ($229) or 14 per cent ($601).

NSW reductions will range between 3.7 per cent ($72) and 7.7 per cent ($211) for households, and between 9.4 per cent ($449) and 20.9 per cent ($1303) for small businesses.

The savings will start from July 1, 2026.

The falls were largely in line with the Victorian Default Offer announced on Monday that showed electricity prices would drop 5 per cent for households.

The AER is an independent body that sets electricity and gas prices across NSW, South East Queensland and South Australia.

It sets the maximum prices providers can charge households and small businesses while also managing the wholesale market.

AER chair Clare Savage described the DMO as a “positive outcome” for Australian households.

“The reductions compared to last year reflect easing costs across most components of the DMO, particularly in wholesale energy, where we’ve seen lower electricity contract prices, reduced spot price volatility, and increased output from wind and battery generation during evening peaks,” she said.

“Despite uncertainty created by conflict in the Middle East, wholesale energy costs have not increased.”

Energy Minister Chris Bowen insists the DMO’s savings are linked to the government’s focus on renewables.

“Our plan has two parts: more cheaper, cleaner energy and a better deal for households – and that’s what we’re delivering with the latest regulator’s benchmark for energy bills showing declines across households and businesses,” he said.

“We’ve got the best sun and wind in the world, and we’re using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills.”

Despite falling power prices, iSelect energy expert Sophie Ryan said Australians should still check their energy bills,

“The DMO may not be the best-priced energy plan in the market. I would urge electricity customers to use today’s news to shop around for a better energy deal,” she said.

“New iSelect research found 38 per cent of Aussies say they have either never switched their energy plan and/or provider or haven’t in over five years.

“That ‘set and forget’ attitude could be costing Aussies dearly, so use this annual reset as your reminder to review your plan.”

Three hours of free power

The draft determination also comes with a new opt-in electricity plan that will help households save on their electricity throughout the day.

The Solar Sharer Offer is an opt-in electricity plan providing three hours of free power when solar generation peaks (11am-2pm in NSW and South East Queensland or noon- 3pm in South Australia).

This allows households to shift some of the more energy-intensive activities such as running appliances or charging an electric vehicle to this free timeslot to save power.

But it comes with a major caveat.

Australians will be asked to pay a little more for the other 21 hours, which will increase in cost by 1c to 4c per kWh.

“The new Solar Sharer Offer is an opportunity to make further savings if households can shift some of their electricity usage, such as washing machines, airconditioning or electric vehicle charging, into the middle of the day,” Ms Savage said.

“With the Solar Sharer Offer now part of the DMO, there’s the added safety of it being a regulated price, which means consumers can feel confident they are not being overcharged outside the free power period.”