The Shocking Reality: Bills Up 37% in One Year
Electricity costs rose 37.0% in the 12 months to February 2026. The annual rise in electricity costs is primarily related to Commonwealth and State Government electricity rebates being used up by households. This dramatic increase, confirmed by the Australian Bureau of Statistics, has left millions of households struggling with energy affordability.
The ABS confirmed this clearly: electricity prices rose 37 per cent out of pocket in the year to February 2026. Stripping out the rebate effect, the underlying electricity price rise was 4.9 per cent. This distinction is crucial - while headlines focus on the 37% jump, the actual price increase was far more modest once rebate effects are removed.
“The main reason is the expiry of government energy rebates — but the underlying electricity price also rose 4.9 per cent on top of that.” - Analysis from Fenro energy research
What Actually Happened to Your Energy Bills?
The federal Energy Bill Relief Fund is over. It ended on 31 December 2025 — and it is the single biggest reason Australian electricity bills jumped 37 per cent in the year to February 2026, according to the ABS. The $75 quarterly credits that appeared automatically on millions of electricity accounts throughout 2024 and 2025 are gone, and there is no universal replacement locked in at the federal level.
The Australian Government announced a $1.8 billion extension of the Energy Bill Relief Fund by six months in the 2025–26 Budget. Australian households and eligible small businesses with electricity bills have received up to $150 in energy bill rebates from 1 July 2025 to the end of 2025. When these automatic credits disappeared, household bills returned to their actual market rates, creating the appearance of a sudden price spike.
What Energy Support Is Still Available in 2026?
The Energy Bill Relief Fund ended on 31 December 2025. If you have a concession card or receive payments under a government scheme, you could be eligible for rebates under existing state and territory schemes. Search this page to find out more about state and territory rebates schemes.
While universal federal rebates have ended, targeted support continues through state programs. For households looking to reduce their winter energy costs, our guide on Winter is Coming: How to Slash Your Australian Heating Bills in 2026 as Energy Rebates End provides practical strategies.
State-by-State Support Programs
| State/Territory | Main Concession Programs | Typical Annual Value |
|---|---|---|
| NSW | Low Income Household Rebate, EAPA vouchers | $285+ |
| Victoria | Annual electricity concession | Variable by usage |
| Queensland | Electricity rebate for concession holders | $372 |
| South Australia | Cost of living concession | $215 |
| Western Australia | Household Electricity Credit | $150 (deadline March 2026) |
| Tasmania | Annual electricity concession | Daily rate discount |
| ACT | Utilities concession | Quarterly credits |
The federal universal rebate is gone — but targeted state and territory rebates for concession card holders, pensioners, low-income households, and people with medical conditions are still active.
The Real Drivers Behind Rising Energy Costs
One of the primary drivers of higher electricity prices is the imbalance between supply and demand. During periods of peak consumption—such as extreme weather seasons—electricity usage rises sharply. Increased demand places stress on national energy networks, leading to higher production and distribution costs.
Australia’s transition toward modern energy infrastructure has introduced additional financial considerations. Upgrading power grids, expanding renewable energy networks, and maintaining aging facilities require significant capital investment.
For homeowners considering battery storage to reduce grid dependency, our 10kWh vs 20kWh Battery in Australia: Which is Better Value After the May 2026 Rebate Changes? guide compares options in the changing rebate landscape.
How to Reduce Your Energy Bills Right Now
Beyond concession rebates, the ACCC warned in December 2025 that households who have been on the same electricity plan for more than a year are very likely paying more than they need to. Retailers offer their best rates to new customers — loyalty is financially penalised in Australia’s energy market. The official government comparison tools are free, independent, and easy to use: EnergyMadeEasy.gov.au — covers NSW, Queensland, SA, ACT, and Tasmania · Victorian Energy Compare — covers Victoria specifically
South Australia remains Australia’s most expensive state for electricity, averaging $1,580/yr — $270 more than the cheapest state (ACT). South Australia remains Australia’s most expensive state for electricity, averaging $1,580/yr — $270 more than the cheapest state (ACT).
Looking Ahead: When Will Prices Stabilise?
Rising electricity prices are driving services inflation, with business pass‑through occurring 4–6 months after the initial increase. Inflation may peak later than expected, with our modelling pointing to December 2026 at around 4.4%.
For households exploring comprehensive energy bill reduction strategies, including comparing heating upgrades versus solar installations, our Draught-Proofing vs. a New Heater vs. Solar Panels: Best ROI for Cutting Your Australian Winter Energy Bills in 2026 analysis provides detailed ROI calculations.
While the universal bill credits are over, the federal government’s longer-term energy incentive programs remain active in 2026 and deliver significantly more value than the $150 rebate they replace. Solar rebates, battery incentives, and energy efficiency programs continue to offer substantial long-term savings for eligible households.