Navigating Australia’s electricity market in 2026 can feel complex, but comparing plans is the most direct way to reduce your household energy costs by hundreds of dollars annually. The key is to understand the benchmarks, know what to look for, and use the right tools for your specific location and usage.
From 1 July 2026, many Australian households on standing offers will see some relief, with the Australian Energy Regulator (AER) announcing Default Market Offer (DMO) price reductions across New South Wales, South East Queensland, and the Victorian Default Offer (VDO) also trending downwards. Residential customers could see annual bills drop by $31 to $229 in DMO regions, and an average 5% reduction (around $46 annually) in Victoria for domestic customers on VDO. However, competitive market offers consistently beat these default prices, often by 10-25%.
Understanding the Default Market Offer (DMO) & Victorian Default Offer (VDO)
The DMO and VDO are crucial benchmarks. The Default Market Offer (DMO) applies to residential and small business customers in New South Wales, South Australia, and South East Queensland. It sets the maximum price energy retailers can charge customers on default, or ‘standing offer’ plans, who haven’t actively chosen a competitive market offer.
In Victoria, the Victorian Default Offer (VDO) serves the same purpose, providing a simple, trusted, and reasonably priced electricity option. Both the DMO and VDO also act as a ‘reference price’ that retailers must use when advertising their market offers, making it easier for you to compare deals. Always aim for a plan priced below the relevant DMO or VDO for your area.
2026-27 DMO and VDO Price Changes (Effective 1 July 2026)
| State/Region | Customer Type | Price Change (Flat Rate) | Price Change (Time-of-Use) | Key DMO/VDO Reference Price Examples (Annual) |
|---|---|---|---|---|
| New South Wales | Residential | -3.4% to -5.0% | -3.7% to -7.7% | Ausgrid: ~$1,965 (3,900 kWh) |
| Small Business | -9.0% to -11.3% | -9.4% to -20.9% | ||
| South East Queensland | Residential | -7.2% | -10.7% | Energex: ~$1,988 (4,600 kWh) |
| Small Business | -10.4% | -14.0% | ||
| South Australia | Residential | +1.4% | -1.1% | SA Power Networks: ~$2,334 (4,000 kWh) |
| Small Business | -6.8% | -12.1% | ||
| Victoria | Residential | Average -5.0% | Varies by zone | CitiPower: ~$1,481 (4,000 kWh) |
| Small Business | Average -6.7% | Varies by zone | Avg. $3,380 (10,000 kWh) |
“The DMO provides a regulated safety net for households and small businesses on standing offer electricity plans and acts as a reference price to help consumers compare market offers.”
How to Find the Best Electricity Plan for You in 2026
There is no single ‘best’ electricity plan for all Australians. The ideal plan depends heavily on your postcode, distribution network, annual usage, tariff type (single rate or time-of-use), solar setup, and concession status.
- Know Your Usage: Dig out your last few electricity bills. Understand your average daily and annual kWh consumption. High-usage households benefit most from lower usage rates, while low-usage homes should prioritise plans with lower daily supply charges.
- Identify Your Distribution Zone: Australia has multiple electricity distributors (e.g., Ausgrid, Endeavour Energy, Essential Energy in NSW; CitiPower, Powercor, Jemena, AusNet Services, United Energy in VIC; Energex in SEQ; SA Power Networks in SA). Prices vary significantly between these zones.
- Use Official Comparison Websites: These are your most reliable tools:
- Energy Made Easy: For NSW, QLD, SA, TAS, and ACT.
- Victorian Energy Compare: For Victoria. These platforms allow you to input your actual usage data for a personalised comparison.
- Compare Key Components: Don’t just look at estimated annual cost. Scrutinise:
- Daily Supply Charge: A difference of $0.20/day is $73/year.
- Usage Rates (c/kWh): Compare peak, off-peak, and shoulder rates if on a Time-of-Use (TOU) tariff. A 3c/kWh difference on 5,000 kWh is $150/year. TOU plans can offer savings if you can shift usage to cheaper periods, but can penalise evening peak use.
- Solar Feed-in Tariff (FiT): If you have solar, this is crucial. While FiTs have generally declined (often 3-10c/kWh, with some even 0c/kWh from July 2026, depending on the retailer and plan), some battery-linked plans offer higher rates for specific export windows. The focus for solar households should be on maximising self-consumption. For more strategies, read our guide on Maximise Your Solar Savings in Australia 2026: Unlock $1,500+ Annually with Smart Strategies.
- Discounts and Conditions: Check if discounts are conditional (e.g., pay on time, direct debit) and if they apply to the entire bill or just usage. Be wary of plans with short benefit periods that revert to higher rates.
- Exit Fees and Contract Terms: Many competitive plans are variable with no exit fees, offering flexibility to switch again if a better deal emerges. Fixed-rate plans offer price certainty but might have exit fees.
Example Competitive Market Offers (Indicative - July 2026)
These examples illustrate potential savings compared to the DMO/VDO. Always use official comparison sites for your specific address.
New South Wales (Ausgrid Network, 3,900 kWh/year residential example)
| Retailer | Plan Name | Estimated Annual Cost | Usage Rate (c/kWh) | Supply Charge ($/day) |
|---|---|---|---|---|
| Sumo | Sunrise Plus Residential Single Rate | ~$1,560 (18% below DMO) | 30.69 | 0.9768 |
| Kogan Energy | Energy with Free FIRST | ~$1,600 (16% below DMO) | 31.56 | 0.9768 |
| ActewAGL | (Lowest benchmark rate) | ~$1,480 | 24.5 | 0.95 |
Victoria (CitiPower Network, 4,000 kWh/year residential example)
| Retailer | Plan Name | Estimated Annual Cost (VDO ~$1,481) |
|---|---|---|
| Origin Energy | (Market offers often below VDO) | Varies, use Victorian Energy Compare |
| EnergyAustralia | (Market offers often below VDO) | Varies, use Victorian Energy Compare |
Note: Victoria’s market is highly competitive, with prices varying significantly by distribution zone and specific plan features. Direct comparative data for lowest market offers across all retailers isn’t consistently published for 2026, but the VDO acts as a strong reference.
South Australia (SA Power Networks, 4,000 kWh/year residential example)
| Retailer | Plan Name | Estimated Annual Cost (DMO ~$2,334) |
|---|---|---|
| Amber Electric | Battery + Solar (2-3 person, 15 kWh/day usage) | ~$2,070 |
| Various | (Cheapest market deals) | Up to ~$452 savings vs. standing offer |
Government Energy Bill Relief and Rebates in 2026
While the universal federal Energy Bill Relief Fund concluded on 31 December 2025, various state and territory concessions remain active for eligible households. These are typically targeted at pensioners, concession card holders, and low-income households, offering annual savings of $200 to $400 or more.
| State/Territory | Main Rebate/Concession | Typical Annual Value (2026) | How to Apply |
|---|---|---|---|
| NSW | Low Income Household Rebate | Up to $285/year | Service NSW |
| VIC | Annual Electricity Concession (17.5% off bill) | Variable | Energy.vic.gov.au |
| QLD | Electricity Rebate | $386.34/year | Qld.gov.au |
| SA | Cost of Living Concession (Energy component) | Variable | SA.gov.au |
| ACT | Electricity, Gas and Water Rebate | $800/year (2025-26) | ACT Revenue Office |
| TAS | Annual Electricity Concession | Daily-rate based | Concessions TAS / Aurora Energy |
| WA | Energy Concession Extension Scheme | Variable | WA.gov.au |
| NT | Pensioner and Carer Concession Scheme | Variable | NT.gov.au |
Note: Dollar values may shift between financial years; always confirm with your state’s official website.
For solar owners, the federal Small-scale Technology Certificates (STCs) scheme continues to provide an upfront discount on solar panel installations, typically $3,000-$4,500 for a 6.6kW system in Victoria. Additionally, the federal Solar Battery Rebate (Cheaper Home Batteries Program) commenced 1 July 2025, offering around $252 per usable kWh of battery capacity. This rebate began reducing from 1 May 2026 and tapers for larger batteries. This can significantly reduce the upfront cost of a new home battery. For more details on integrating batteries, see our guide on Best Home Solar Batteries in Australia 2026: Models, Prices & Post-May Rebates.
Other Savings Strategies
- Review Regularly: Electricity plans change frequently. Aim to compare plans at least once a year, or whenever your current plan’s benefit period ends, you move, or install new energy-efficient tech like solar or an EV.
- Energy Efficiency: Reducing consumption directly lowers your bill. Consider energy-efficient appliances, insulation, and draught proofing. Our guide, How to Cut Your Electricity Bill This Winter in Australia 2026: Strategies After Federal Rebates End, offers practical tips.
- Solar Self-Consumption: With generally lower feed-in tariffs, using your solar power during the day (e.g., running dishwashers, washing machines) is more valuable than exporting it.
- Consider Bundling Gas: If you use natural gas, some retailers offer discounts for bundling electricity and gas plans. However, be aware that Victoria and ACT are accelerating gas phase-out plans, so consider long-term implications.
Bottom Line
In 2026, switching electricity providers remains one of the most effective ways for Australian households to save hundreds of dollars annually on their energy bills. Start by understanding your usage and leverage the government’s free comparison tools, Energy Made Easy or Victorian Energy Compare, for a personalised assessment. Don’t settle for a standing offer; actively seek out competitive market plans that offer better rates, suitable feed-in tariffs for solar, and align with your consumption patterns. Regularly review your plan and take advantage of any eligible state-based concessions or federal solar and battery rebates to maximise your savings.