Why is my daily electricity supply charge increasing in July 2026?

While overall electricity prices are falling for many, some retailers are increasing fixed daily supply charges, sometimes by 60-100%, to rebalance tariffs and cover ongoing network maintenance costs.

Will my total electricity bill increase or decrease from July 2026?

For most households on standing offers in NSW, SE QLD, and regional QLD, total bills are expected to decrease. However, South Australian residential flat-rate customers may see a slight increase, and individual retailer adjustments to supply charges can impact your final bill regardless of usage rate changes.

What is the 'Solar Sharer Offer' and how can it save me money?

The new Solar Sharer Offer, available from 1 July 2026 in DMO regions for smart meter households, provides 3 hours of free electricity in the middle of the day. You can save money by shifting high-energy consumption to this free period.

What are the best ways to reduce my electricity bill given higher daily supply charges?

The most effective strategies are to regularly compare and switch electricity retailers for better market offers, invest in energy-efficient upgrades like heat pump hot water, install solar panels and potentially a home battery, and use smart energy management to shift consumption to off-peak or free periods.

Your Daily Electricity Supply Charge Jumps in July 2026: Why & How to Slash Your Bill

For many Australian households, your daily electricity supply charge is set to increase from 1 July 2026, with some customers reporting jumps of 60% to nearly 100%. While overall Default Market Offer (DMO) and Victorian Default Offer (VDO) prices are falling for most residential customers in New South Wales, South East Queensland, and regional Queensland, and for time-of-use customers in South Australia, the fixed daily supply charge is seeing a significant upward adjustment from some retailers.

This guide will explain why this is happening, how much you can expect to pay, and most importantly, provide practical strategies to reduce your overall electricity bill, even with a higher fixed daily cost.

What is the Daily Supply Charge?

The daily supply charge, sometimes called a ‘service to property’ or ‘fixed charge’, is a non-negotiable fee you pay just for being connected to the electricity grid. It’s a fixed daily cost, meaning you pay it regardless of how much electricity you consume. This charge covers the costs associated with maintaining the poles, wires, and other infrastructure that deliver electricity to your home, as well as metering services.

Across Australia, typical daily supply charges currently range from approximately $0.90 to $1.30 per day. In New South Wales, the average daily supply charge is around $1.05 per day.

Why Are Daily Supply Charges Increasing in July 2026?

While the Australian Energy Regulator (AER) and the Queensland Competition Authority (QCA) have announced overall reductions in Default Market Offer (DMO) and regulated prices for many regions from 1 July 2026, these announcements primarily focus on usage rates (cents per kilowatt-hour) and the total annual bill.

However, energy retailers have the flexibility to adjust their pricing structures within these regulated caps. Recent reports indicate that some major retailers, like Origin Energy, are significantly increasing the daily supply charge for many customers. For example, some Origin customers in NSW and Queensland have been notified of daily supply charge increases from $1.79 per day to $2.69 per day, or even from $0.86 to $1.72 per day, representing increases of 60% to nearly 100%.

This shift can be attributed to several factors:

Network Costs: While wholesale electricity prices have generally moderated in early to mid-2026, with average spot prices falling in NSW, QLD, and VIC, the costs associated with maintaining and upgrading the electricity network (poles and wires) continue to be a significant component of your bill. These network costs are regulated by the AER and are passed on to consumers.
Retailer Strategy: Retailers may be rebalancing their tariffs, reducing usage charges to appear more competitive on a per-kWh basis, while recovering costs through higher fixed daily supply charges. This strategy can disproportionately impact low-usage households or those with solar panels who consume less grid electricity but still pay the daily fixed fee.
Default Market Offer (DMO) Reforms: The DMO sets a safety net for customers on standing offers. The 2026-27 DMO is the first under a reformed framework which introduces tariff caps, limiting maximum daily supply charges and usage rates, not just annual bills. Retailers must operate within these caps.

How Much Will Your Daily Supply Charge (and Bill) Change?

For most residential customers on standing offers, the overall bill impact from 1 July 2026 will vary by state and tariff type. It’s important to differentiate between the overall bill change and the specific daily supply charge adjustment, as the latter can increase even if your total bill decreases due to lower usage rates.

The Australian Energy Regulator (AER) announced that for residential flat rate standing offer prices, New South Wales will see falls of 3.4% to 5.0%, and South East Queensland will see a 7.2% reduction. South Australia is the exception, with a modest 1.4% increase (approximately $33 per year).

Regional Queensland households will experience a drop of up to 6.9% in their electricity costs, translating to approximately $151 less per year for households.

For customers on time-of-use (TOU) standing offers, prices are generally falling across all DMO regions, including a 1.1% decrease in South Australia and up to 10.7% in South East Queensland.

However, as highlighted, specific daily supply charges may increase significantly from individual retailers, impacting how these overall reductions are felt on your bill. Always check your latest bill and contract details for the exact figures for your plan.

Strategies to Reduce Your Total Electricity Bill

Even with rising daily supply charges, you have several powerful strategies to reduce your overall electricity costs. The key is to focus on what you can control: your usage and your retail plan.

1. Switch Retailers and Plans Regularly

The DMO (and Victorian Default Offer, VDO) acts as a safety net and a reference price, but market offers are almost always cheaper. Many market offers are typically 10% to 25% below the DMO/VDO.

Compare Annually: Don’t set and forget. Energy plans change frequently. Use government-backed comparison websites like Energy Made Easy (for NSW, SE QLD, SA, ACT, TAS) or Victorian Energy Compare (for VIC). These tools provide personalised comparisons based on your actual usage data.
Understand Your Usage: Knowing when and how much electricity you use (kWh) is crucial. If you have a smart meter, this data is readily available. This helps you choose between flat-rate, time-of-use (TOU), or demand tariffs.
Consider Smaller Retailers: While major players like AGL, Origin, and EnergyAustralia dominate, smaller retailers often offer highly competitive rates and innovative plans. Companies like Diamond Energy, Amber Electric, Momentum Energy, Energy Locals, Red Energy, and GloBird Energy are often rated highly for customer satisfaction and competitive pricing.

2. Embrace Energy Efficiency Upgrades

Reducing your overall electricity consumption is the most direct way to offset higher daily supply charges and usage rates. Many upgrades come with significant government rebates.

Optimise Hot Water: Heating water accounts for 15% to 30% of household energy use. Replacing an old electric or gas hot water system with a heat pump hot water system can slash your hot water costs.
- Federal STCs: All states are eligible for Small-scale Technology Certificates (STCs), providing an upfront discount of hundreds to over $1,000.
- State Rebates:
  - Victoria: Up to $1,000 rebate (or $1,400 for eligible locally made products) through the Solar Homes Program. Income eligibility changes from $210,000 to $150,000 combined household income per year from 1 July 2026.
  - NSW: Up to $640 for replacing an electric water heater or $330 for a gas water heater with a heat pump through the Energy Savings Scheme.
  - Queensland: Climate Smart Energy Savers rebate offers $800 (standard) or $1,000 (low-income) for eligible heat pump hot water systems.
- Learn more in our guide: Heat Pump Hot Water Australia 2026: Slash Bills by $900+ with Rebates
Improve Insulation: Good insulation can reduce heating and cooling costs by up to 40%. State rebates are available. Read our guide: Slash Your Winter Bills by Up To $800: Best Home Insulation Upgrades & 2026 State Rebates
LED Lighting: Switch all incandescent and halogen bulbs to energy-efficient LEDs. This is a low-cost, high-impact change.

3. Invest in Solar PV and Battery Storage

Generating your own electricity and storing it for later use significantly reduces your reliance on grid power, directly impacting your usage charges and providing a hedge against rising fixed costs.

Solar Panels (PV): The federal Small-scale Technology Certificates (STCs) scheme provides an upfront discount of $2,000 to $4,500+ for typical 6.6kW solar systems, reducing the installed cost to around $5,000-$6,000. Note that STC values decrease annually, so acting sooner can mean a larger discount.
- Consider your future energy needs, especially if planning for an EV or electrification. Our guide can help: What Solar System Size Do You Really Need in Australia 2026? Future-Proofing for EVs & Electrification
Home Batteries: Battery storage allows you to use your solar power after sunset or during peak times, further reducing grid consumption.
- Federal Cheaper Home Batteries Program: Launched July 2025, this program offers approximately 30% off eligible battery systems. From May 2026, a tiered rebate structure applies, offering around $272 per kWh for the first 14 kWh of usable capacity.
- State Battery Rebates: While Victoria, SA, and Queensland’s state-specific battery programs have mostly closed, the federal rebate still applies. Western Australia offers rebates up to $1,300 (Synergy customers) or $3,800 (Horizon Power customers). NSW offers a VPP incentive up to $1,500 (though often less in practice, around $1,000 due to costs). South Australia offers up to $2,050 for connecting to a Retailer Energy Productivity Scheme (REPS)-approved Virtual Power Plant (VPP).
- Popular battery brands include Sigenergy and GoodWe, known for reliability in Australian conditions.

4. Implement Smart Home Energy Management

Smart energy systems can help you monitor and control your energy usage, making it easier to shift consumption to cheaper times.

Time-of-Use (TOU) Optimisation: If you’re on a TOU tariff, shift high-consumption activities (washing machine, dishwasher, EV charging) to off-peak or super off-peak periods when electricity is cheapest, often during the middle of the day due to abundant solar generation.
Solar Sharer Offer: A new opt-in Solar Sharer Offer is available from 1 July 2026 in DMO regions (NSW, SA, SE QLD) for smart meter households. This provides 3 hours of free power in the middle of every day, regardless of whether you have solar panels. This is a significant opportunity to shift daytime usage.
Smart Appliances & Automation: Use smart plugs, smart thermostats, and energy management systems to automate appliance usage during optimal times. For more details, see: Smart Home Energy Systems: Slash Your 2026 Australian Electricity Bills by Up To 30%

5. Access Government Rebates and Concessions

Beyond solar and efficiency rebates, state and federal governments offer assistance for eligible households.

Federal Energy Bill Relief Fund: The federal Energy Bill Relief Fund provided up to $150 in electricity bill rebates in the second half of 2025 (two $75 instalments), but this program has now ended.
State Concessions: Most states offer ongoing concessions for eligible concession card holders (Pensioner Concession Card, Health Care Card, Veterans’ Affairs Gold Card), low-income households, and those with specific medical needs (e.g., life support, medical heating/cooling).
- NSW: Family Energy Rebate, Low Income Household Rebate (up to ~$285/year), Life Support Rebate, Medical Energy Rebate, NSW Gas Rebate.
- Victoria: Concessions for eligible cardholders (17.5% of electricity usage and service costs), Utility Relief Grant Scheme for hardship.
- Queensland: Electricity Rebate ($386.34 per year), Reticulated Natural Gas Rebate, Medical Cooling and Heating Electricity Concession Scheme.
- South Australia: Energy Bill Concession (up to $281.78 per year for 2025/2026), Medical Heating and Cooling Concession.
- For a comprehensive overview, consult our guide: Navigating Australia’s Energy Bill Relief and Support in 2026: A Comprehensive Guide

Bottom Line

The increase in daily electricity supply charges from July 2026 is a reality for many Australian households, reflecting shifts in retailer pricing strategies and ongoing network costs. While overall bill reductions are forecast for most DMO regions, the higher fixed charge means that even low-usage homes will see a larger baseline cost.

Your most effective defence is proactive engagement: compare electricity plans regularly using government comparison websites to ensure you’re on the best market offer, and invest in energy efficiency upgrades and solar technology where feasible to reduce your overall grid reliance. Leveraging new initiatives like the Solar Sharer Offer for smart meter households can also provide significant savings. Don’t be a ‘set and forget’ customer; actively managing your energy consumption and plan can save you hundreds, if not thousands, of dollars annually.

Strategy	Impact on Bill	Key Action
Switch Retailers/Plans	Up to 10-25% below DMO/VDO	Use Energy Made Easy/Victorian Energy Compare.
Heat Pump Hot Water	Significant reduction in hot water costs	Claim federal STCs & state rebates (up to $1,400 VIC).
Solar PV	Reduce usage charges, federal STC discount	Install 6.6kW system (avg. $5,000-$6,000 after STCs).
Home Battery	Maximise solar self-consumption	Claim federal rebate (~$272/kWh) & state VPP incentives.
Smart Energy Management	Shift usage to cheaper periods	Utilise Solar Sharer Offer, smart appliances.
Government Concessions	Direct bill relief for eligible households	Check state government websites for eligibility.