Switching electricity providers is one of the fastest ways to reduce household expenses, with potential annual savings reaching up to $450 for an average household. The good news for 2026 is that after several years of volatility, electricity prices are falling for most Australians. Thanks to a decrease in wholesale energy costs, the Australian Energy Regulator (AER) has lowered the Default Market Offer (DMO) — the price cap for electricity — from 1 July 2026. This means if you haven’t shopped around for a better deal, now is the perfect time.
For households in New South Wales, prices on regulated standing offers are set to fall by between 3.4% and 5.0%. In South East Queensland, the drop is a more significant 7.2%. Victorian residential bills are also expected to decrease by an average of 5% under the state’s Victorian Default Offer (VDO). Only South Australian households on a flat-rate standing offer will see a minor increase of 1.4%.
Understanding the Default Offer: Your Price Safety Net
The Default Market Offer (DMO) and the Victorian Default Offer (VDO) are not specific plans but a price cap set by regulators. They function as a safety net for customers who don’t or can’t engage with the market to find a better deal. About 10% of households are on these standing offers.
Crucially, these default offers also serve as a mandatory reference price. All retailers must advertise their discounts and deals by comparing their offer to this official benchmark. This makes it much easier to see if a heavily advertised “20% off” deal is genuinely cheaper or just 20% off an already inflated price.
From 1 July 2026, the annual DMO reference prices for a typical residential customer are:
| State/Territory | Network | Annual Reference Price (Flat Rate) | Change from 2025-26 |
|---|---|---|---|
| NSW | Ausgrid | $1,899 | -5.0% (-$137) |
| Endeavour | $2,277 | -3.4% (-$66) | |
| Essential | $2,604 | -3.7% (-$72) | |
| SE QLD | Energex | $1,988 | -7.2% (-$155) |
| SA | SA Power Networks | $2,334 | +1.4% (+$33) |
| VIC | (Average of 5 zones) | $1,591 | -5.0% (Average) |
Source: AER Final Determination May 2026, ESC Final Determination May 2026. Based on representative annual usage.
A key takeaway for 2026 is that while default prices are falling, the biggest savings are always found in competitive market offers. If your bill is close to the reference price, you are paying too much.
How to Find a Cheaper Electricity Plan in 2026
Finding a better deal is a straightforward process that can be completed in under an hour. Sticking with your current provider out of loyalty rarely pays off.
Step 1: Use the Official Comparison Tools
Forget commercial switching sites that may not list all available plans. The official, government-run comparison websites are independent and comprehensive:
- For NSW, SE QLD, SA, TAS & ACT: Energy Made Easy
- For Victoria: Victorian Energy Compare
These tools allow you to upload a recent bill (or enter usage data manually) to get a precise comparison based on your actual consumption patterns.
Step 2: Look Beyond the Big Three
While AGL, Origin, and EnergyAustralia hold the largest market share, smaller and mid-tier retailers often offer more competitive pricing to attract customers. In 2026 customer satisfaction surveys, providers like Red Energy and Alinta Energy consistently rated highly for value and service.
Don’t ignore providers like GloBird Energy, Momentum Energy, and ENGIE, which frequently appear with competitive rates on the government comparison sites.
Step 3: Understand Tariffs and Usage
- Single Rate: You pay the same price for electricity regardless of the time of day. This is the simplest and most common tariff.
- Time of Use (ToU): Your electricity rate changes throughout the day, typically with a cheap ‘off-peak’ period (e.g., 10 pm-7 am), a ‘shoulder’ period, and an expensive ‘peak’ period (e.g., 2 pm-8 pm). If you can shift heavy appliance usage (like washing machines, dryers, and EV charging) to off-peak times, a ToU tariff can deliver significant savings. This is especially relevant for those looking to slash their EV home charging costs by 70% in Australia 2026.
- New ‘Solar Sharer’ Offer: From 1 July 2026, retailers can offer an opt-in plan for customers with smart meters that provides three hours of free electricity in the middle of the day. This is designed to soak up abundant midday solar generation, and you don’t need your own solar panels to be eligible.
Step 4: Make the Switch
Once you’ve chosen a new plan, you can sign up online or over the phone. The process is simple:
- Provide your details and address.
- Your new retailer will contact your old one and handle the entire transfer.
- Your power supply will not be interrupted.
- You’ll receive a final bill from your old provider.
There are generally no exit fees on residential plans, and the whole process is free.
Don’t Forget Rebates and Concessions
While the broad federal Energy Bill Relief Fund ended in December 2025, every state and territory continues to offer targeted concessions that can save eligible households hundreds of dollars per year.
Eligibility is typically tied to holding a Pensioner Concession Card, Health Care Card, or DVA Gold Card. Amounts vary significantly by state:
- NSW: The Low Income Household Rebate offers up to $285 per year.
- VIC: The Annual Electricity Concession provides a 17.5% discount on usage and service costs.
- QLD: The Electricity Rebate is worth up to $386.34 per year for eligible cardholders.
- SA: The Energy Bill Concession is $270.60 for the 2026-27 financial year.
- ACT: The Utilities Concession provides a generous $800 annually.
Check your state government’s website or our detailed guide on Australia’s energy bill relief landscape in 2026 for full eligibility criteria.
Bottom Line
With regulated prices falling in 2026, every Australian household should take 30 minutes to compare their current electricity plan. The government comparison websites, Energy Made Easy and Victorian Energy Compare, are the only tools you need to find the best deal. Savings of between $300 and $450 a year are realistically achievable for households that switch from a default offer to a competitive market rate.
Look beyond the major retailers and consider providers that are performing well in customer satisfaction surveys. For those with smart meters, investigating a Time of Use tariff or the new ‘Solar Sharer’ offer could unlock even deeper savings by aligning your energy use with the cheapest times of the day.