For Australian households, navigating the electricity market can feel complex, but significant savings are achievable in 2026 by actively comparing retailers and plans. The direct answer is that the best electricity retailer and plan for you will depend on your specific postcode, usage patterns (including solar and EV ownership), and whether you prioritise lowest cost, green energy, or specific features like Virtual Power Plant (VPP) integration or the new Solar Sharer Offer.

From 1 July 2026, many Australians have seen, or will soon see, changes to their electricity bills, primarily driven by the annual reset of the Default Market Offer (DMO) and Victorian Default Offer (VDO). These benchmarks, set by the Australian Energy Regulator (AER) and Essential Services Commission (ESC) respectively, generally indicate a positive trend with prices falling across most regions, offering a welcome reprieve after years of increases.

The 2026 Electricity Price Reset: DMO & VDO Explained

The Default Market Offer (DMO) applies to residential and small business customers in New South Wales (NSW), South East Queensland (SE QLD), and South Australia (SA). The Victorian Default Offer (VDO) serves the same purpose in Victoria (VIC). These offers act as a safety net, capping the maximum price retailers can charge customers on a standing offer (default plan). Crucially, they also serve as a reference price, against which all market offers must be compared, making it easier to identify competitive deals.

In good news for most, wholesale electricity prices fell significantly across the National Electricity Market (NEM) in Q2 2026, largely due to strong renewable generation, increased battery dispatch, and reduced reliance on gas and coal. This has translated into lower default prices.

Key Changes from 1 July 2026:

| State/Region | Average Residential Annual Bill Change (DMO/VDO) | Estimated Annual Cost (Typical Usage) | Source NSW (Ausgrid): -3.4% ($66/year saving) to $1,899/year.

  • NSW (Endeavour Energy): -3.4% ($83/year saving) to $2,328/year.
  • NSW (Essential Energy): -5.0% ($137/year saving) to $2,604/year.
  • SE QLD (Energex): -7.2% ($155/year saving) to $1,988/year.
  • SA (SA Power Networks): +1.4% ($33/year increase) to $2,334/year.
  • VIC (Average): -5.0% for residential customers, with average annual bills falling to approximately $1,591/year.

“Average wholesale prices in the National Electricity Market… fell to their lowest June quarter average since 2020, and were down 47 per cent from the same period last year to an average of $74/MWh (megawatt hour).”

Understanding Your Electricity Bill & How to Compare

Your electricity bill is typically made up of two main components: a daily supply charge (a fixed fee for being connected to the grid) and usage charges (what you pay per kilowatt-hour, or kWh, of electricity consumed). For solar owners, a feed-in tariff (FiT) provides a credit for excess electricity exported to the grid.

To find the best deal, you must compare market offers against the DMO/VDO reference price. Market offers are competitive plans from retailers that often include discounts, sign-up bonuses, or specific tariff structures (e.g., time-of-use rates). These are almost always cheaper than standing offers (the default DMO/VDO rate), with savings typically ranging from $200 to $400 per year for an average household.

Key comparison factors include:

  • Daily Supply Charge: The fixed daily fee, usually between $0.85 and $1.40 per day in most states.
  • Usage Charges (c/kWh): This is the variable cost. Look at peak, off-peak, and shoulder rates if you’re on a time-of-use tariff. Average residential rates are generally 30-35 cents per kWh in 2026.
  • Solar Feed-in Tariffs (FiT): If you have solar, this is crucial. While FiTs have generally declined, competitive plans in NSW and QLD can still offer up to 10 cents per kWh, though Victoria’s regulated minimum is much lower, around 0.04 cents per kWh (with average minimums around 0.8c/kWh). Remember, self-consumption of your solar power is always more valuable than exporting it.
  • Discounts & Incentives: Look for conditional discounts (e.g., pay on time, direct debit) or one-off sign-up credits. Be aware of any conditions that might make them difficult to achieve.
  • Contract Length & Exit Fees: Many market offers are no-lock-in contracts, but always check for exit fees.
  • Customer Service & Green Credentials: Consider customer reviews and whether the retailer offers green energy options or carbon offsets.

Top Electricity Retailers and Plans (Indicative for 2026)

While specific plan rates fluctuate, here’s a general overview of competitive retailers and strategies by state, based on current market dynamics:

New South Wales

NSW has a highly competitive market. Retailers often offer plans significantly below the DMO.

  • Competitive Retailers: Elysian Energy, Discover Energy, and ReAmped Energy are frequently cited for offering plans 10-25% below the DMO. EnergyAustralia also offers competitive market offers. Red Energy was rated Canstar’s Best-Rated Electricity Provider in NSW for 2026.
  • Key Feature: The new Solar Sharer Offer (SSO), available from 1 July 2026, provides 3 hours of free electricity daily (typically 11 am to 2 pm) for smart meter customers in DMO regions, including NSW. This is available to all households, even without solar panels, and can significantly cut bills by shifting usage.

Victoria

Victoria’s market also features strong competition, with the VDO as a critical reference point.

  • Competitive Retailers: Amber Electric is excellent for households with solar, batteries, or EVs who can shift consumption to periods of low wholesale prices, offering pass-through wholesale pricing with a $12/month membership. Sumo consistently appears on comparison sites for its simple tariffs. Alinta Energy was rated Canstar’s Best-Rated Electricity Provider in VIC for 2026.
  • Key Feature: Victoria’s regulated minimum FiT is low (0.04c/kWh), but time-varying FiTs can offer up to 6.57 cents per kWh during evening peaks, rewarding strategic export. Consider a home battery to maximise self-consumption and capitalise on time-of-use tariffs. You can learn more about optimising battery usage in our guide: Maximise Your Home Battery Savings: Earn $1,000+ Annually with a VPP in 2026.

Queensland (South East)

SE QLD benefits from competition, but regional Queensland is primarily served by Ergon Energy.

  • Competitive Retailers: In SE QLD, Alinta Energy, Origin Market Offer, and Red Energy are strong contenders. Red Energy was also rated Canstar’s Best-Rated Electricity Provider in QLD for 2026.
  • Key Feature: The Solar Sharer Offer is also available in SE QLD for smart meter customers, offering 3 hours of free power daily (11 am to 2 pm).

South Australia

South Australia typically has the highest electricity rates in Australia due to grid costs and high renewable penetration. This makes comparing and switching even more critical.

  • Competitive Retailers: GloBird Energy and Simply Energy are often among the cheapest providers. Lumo Energy was rated Canstar’s Best-Rated Electricity Provider in SA for 2026.
  • Key Feature: With SA’s significant solar uptake, a good FiT is important. While the DMO increased slightly here, competitive market offers are still essential for savings. The Solar Sharer Offer also applies here for smart meter customers.

Maximising Your Savings Beyond Switching Retailers

Switching retailers is the fastest way to save, but consider these long-term strategies:

How to Switch Electricity Providers

  1. Gather Your Bills: Have your latest electricity bill handy. It contains crucial information like your National Meter Identifier (NMI), usage history, and current tariff.
  2. Use Government Comparison Tools: These are the most reliable and unbiased. For NSW, SE QLD, and SA, use Energy Made Easy. For Victoria, use Victorian Energy Compare. These tools show all authorised offers for your exact address and usage, including estimated annual costs.
  3. Compare Offers: Look beyond headline discounts. Focus on the total estimated annual cost, daily supply charges, usage rates (peak/off-peak), and FiT if you have solar. Consider customer service ratings.
  4. Read the Details: Understand any conditions attached to discounts, contract length, and exit fees.
  5. Switch Online or by Phone: Once you’ve chosen, the new retailer will handle the switch, which is typically free and seamless, with no interruption to your power supply.

Bottom Line

The Australian electricity market in 2026 offers genuine opportunities for savings, with falling DMO and VDO prices providing a more favourable environment for consumers. Your immediate action should be to use government comparison websites (Energy Made Easy or Victorian Energy Compare) with your latest bill to find a market offer significantly below the DMO/VDO reference price for your specific circumstances. For solar owners, prioritise self-consumption and consider a home battery, potentially leveraging a VPP. For all smart meter customers in DMO regions, investigate the new Solar Sharer Offer. By being an active participant in the energy market, you can ensure you’re not overpaying and can secure hundreds of dollars in annual savings.