Australian households and small businesses faced significant shifts in electricity pricing from 1 July 2026, with the Australian Energy Regulator (AER) and Essential Services Commission (ESC) in Victoria announcing their annual Default Market Offer (DMO) and Victorian Default Offer (VDO) determinations. The good news for most: benchmark prices have fallen across New South Wales, South East Queensland, and Victoria, offering potential savings of up to $229 annually for residential customers on standing offers. South Australia, however, saw a modest increase for flat-rate residential plans.
While these regulated offers provide a safety net, they are rarely the cheapest plans available. The real opportunity for savings lies in actively comparing and switching to competitive market offers from retailers. This guide breaks down the July 2026 changes by state, highlights available relief, and provides actionable steps to ensure you’re on Australia’s most affordable electricity plan.
The July 2026 Electricity Price Reset: What Changed?
Each year, the AER sets the DMO for NSW, South East Queensland (SE QLD), and South Australia, acting as a price cap for customers on standing offers (default plans). Similarly, the ESC sets the VDO for Victoria. These benchmarks are crucial indicators, but competitive market offers almost always sit below them.
Key changes effective 1 July 2026:
- New South Wales (NSW): Residential flat-rate DMO prices decreased by 3.4% to 5.0%, translating to annual savings of up to $137. Households on time-of-use (TOU) tariffs saw even larger reductions, between 3.7% and 7.7%, saving up to $211 per year.
- Victoria (VIC): The VDO for residential customers fell by an average of 5%, equating to approximately $84 per year. Small businesses saw an average 6% reduction. This decrease is primarily driven by lower environmental scheme costs, wholesale electricity prices, and network charges.
- South East Queensland (SE QLD): Residential flat-rate DMO prices dropped by 7.2%, saving approximately $155 annually. For TOU customers, the reduction was a significant 10.7%, offering savings of up to $229 per year – the largest residential TOU reduction nationally.
- South Australia (SA): Unlike other DMO regions, residential flat-rate DMO prices in SA saw a modest increase of 1.4%, adding around $33 annually. However, TOU customers experienced a 1.1% decrease, saving approximately $25 per year.
“This is a positive outcome with prices coming down for the majority of households and all small businesses across the three regions where the DMO safety net applies.” – Clare Savage, AER Chair, May 2026.
Wholesale electricity prices also contributed to these changes, with Q2 2026 seeing considerably lower average volume-weighted quarterly prices in all regions compared to the same period last year. NSW experienced the largest drop, from $188 per MWh to $78 per MWh. This reduction is attributed to higher renewable output and increased lower-priced battery generation.
State-by-State Guide to Finding the Cheapest Plan
While DMO/VDO adjustments offer some relief, your actual bill depends heavily on your retailer, tariff structure, and usage patterns. Here’s what to look for in your state:
New South Wales
NSW electricity rates average around 28.5 cents per kWh with an average daily supply charge of $1.05. As of July 2026, the lowest single-rate plan tracked in NSW was around 25.9 cents per kWh (AGL Energy), with a daily supply charge of $1.30, leading to an estimated annual cost of $1,484 for benchmark usage.
To find the best deal, use the federal government’s Energy Made Easy comparison website. Look for plans with competitive usage rates, transparent supply charges, and consider the new Solar Sharer Offer if you have a smart meter. This federal initiative, available from 1 July 2026, provides three hours of free electricity daily (11 am to 2 pm in NSW) for eligible smart meter households, even without solar panels, potentially saving up to 24 kWh per day.
NSW Energy Relief & Concessions 2026:
| Rebate Name | Annual Value | Eligibility | How to Apply |
|---|---|---|---|
| Low Income Household | Up to $285 | Pensioner Concession Card, Health Care Card, or DVA Gold Card | Service NSW |
| Family Energy | Up to $180 | Family Tax Benefit A or B recipient (reduced if also receiving Low Income Rebate) | Service NSW |
| Seniors Energy | $200 | Commonwealth Seniors Health Card holder | Service NSW |
Victoria
Victorian electricity rates average around 26.8 cents per kWh with an average daily supply charge of $1.02. Following the VDO decrease, the lowest single-rate plan tracked in Victoria was approximately 17.9 cents per kWh (GloBird Energy), with a daily supply charge of $0.92, and an estimated annual cost of $1,052 for benchmark usage.
Victoria has also introduced new consumer protections from 1 July 2026. Retailers must now annually check if customers on the same plan for four or more years are paying a “reasonable price,” potentially moving up to 53,000 customers to cheaper plans and saving them an average of $230 annually. Further rules in October 2026 will mandate automatic moves to the cheapest available plan for customers in hardship.
Use Victorian Energy Compare to find the best plan for your postcode. Consider market offers that beat the new, lower VDO.
Victorian Energy Relief & Concessions 2026:
| Rebate Name | Annual Value | Eligibility | How to Apply |
|---|---|---|---|
| Annual Electricity | 17.5% off bill | Pensioner Concession Card, Health Care Card, or DVA Gold Card (does not apply to first $171.60 of bill) | Electricity Retailer |
| Utility Relief Grant | Up to $650 | Households experiencing short-term financial difficulty (up to $1,300 for single-energy households) | VIC Gov Website |
South East Queensland
For SE QLD, residential flat-rate DMO prices dropped by 7.2%, but market offers typically provide better value. For customers of Ergon Energy (regional QLD), prices are set by the Queensland Competition Authority (QCA), not the DMO. Ergon’s standard Tariff 11 (flat rate) fell from approximately 36c/kWh to 29c/kWh from 1 July 2026, potentially saving a median household around $151 per year (6.9% decrease).
Ergon also introduced the new Tariff 12F “Solar Sharer” from 1 July 2026, offering three hours of free power (11 am to 2 pm) up to 24 kWh daily. Its peak rate (4 pm to 9 pm) is approximately 49c/kWh, while the shoulder rate is around 26c/kWh. For those with solar, the feed-in tariff has reduced to 6.006 cents per kWh, underscoring the value of self-consumption over exporting.
Average quarterly bills in Brisbane are around $599, or $1,668 annually. Use Energy Made Easy to compare offers in the Energex network. Regional customers should use the QCA’s bill estimator.
Queensland Energy Relief & Concessions 2026:
| Rebate Name | Annual Value | Eligibility | How to Apply |
|---|---|---|---|
| Electricity Rebate | $386.34 | Pensioner Concession Card, Health Care Card, DVA Gold Card, Commonwealth Seniors Health Card, QLD Seniors Card | Qld.gov.au |
South Australia
South Australia continues to have some of the highest electricity costs, with an estimated average annual bill for a two-person household reaching $3,122. The state’s average annual cost is $1,580, the highest nationally. While the residential flat-rate DMO increased by 1.4%, market offers typically provide better value.
SA customers with smart meters can also access the Solar Sharer Offer, providing free electricity from 12 pm to 3 pm daily.
South Australian Energy Relief & Concessions 2026:
| Rebate Name | Annual Value | Eligibility | How to Apply |
|---|---|---|---|
| Cost of Living | $243.60 | Low-income or fixed-income households | SA.gov.au |
| Energy Bill | Up to $291.27 | Low-income or fixed-income households | SA.gov.au |
| Medical Heating & Cooling | Up to $243 | Low-income/fixed-income with medical condition affecting temperature regulation | SA.gov.au |
| SACEDO (Origin Energy) | 20% off bill | Eligible concession card holders (Pensioner, Health Care, DVA Gold) | Origin Energy |
Australian Capital Territory (ACT)
The ACT generally boasts the lowest average electricity costs nationally, at around $1,310 per year. While not covered by the DMO, competitive market offers are available. Always use Energy Made Easy to compare plans in your area.
ACT Energy Relief & Concessions 2026:
| Rebate Name | Annual Value | Eligibility | How to Apply |
|---|---|---|---|
| Electricity, Gas and Water | $800 (2025-26) | Eligible pensioners and seniors | ACT Revenue Office |
Tasmania
Tasmania operates under a different regulatory framework, with Aurora Energy being the primary retailer. The average annual bill for a two-person household is around $2,839. While not subject to DMO/VDO, state concessions play a vital role. Use Energy Made Easy to compare available offers, if any, or contact Aurora Energy directly.
Tasmanian Energy Relief & Concessions 2026:
| Rebate Name | Annual Value | Eligibility | How to Apply |
|---|---|---|---|
| Annual Electricity | $1.84347/day | Eligible concession card holders (Pensioner, Health Care, ImmiCard, Tasmanian Concession Card) | Retailer or Service TAS |
| Embedded Networks | $673 (once-off) | Eligible embedded network customers in retirement villages, caravan parks, aged care facilities | Service Tasmania |
| Medical Heating & Cooling | Variable | Concession households with medical needs | Retailer with medical form |
| Life Support | Variable | Concession households requiring life support equipment | Retailer |
The End of Universal Federal Energy Relief
It’s crucial to note that the broad federal Energy Bill Relief Fund, which provided universal credits of up to $300 in 2024-25 and a further $150 in the first two quarters of 2025-26 (ending 31 December 2025), has concluded. As of 1 January 2026, no new universal federal rebates are in place. Any ongoing support is now primarily through targeted state and territory concession schemes for eligible groups.
For a detailed overview of current support, refer to our comprehensive guide: Australia’s Energy Bill Relief Fund 2026: Your Guide to Current Support and Savings.
Beyond Switching: Reducing Your Consumption
While finding the cheapest plan is vital, reducing your overall energy consumption can lead to even greater savings. Consider:
- Energy-efficient appliances: Upgrading to modern, high-star-rated appliances can significantly cut usage. Our guide to Australia’s Top Energy-Efficient Home Upgrades 2026: Maximise ROI as Electricity Bills Soar This Winter offers actionable advice.
- Solar & Batteries: If you have rooftop solar, optimising its use with a home battery can dramatically reduce reliance on grid power, especially during peak times. Explore options like joining a Virtual Power Plant (VPP) to earn additional income: Join a VPP in 2026: Earn Up To $1,500 Annually & Boost Grid Stability.
- Home Energy Management Systems: These systems can monitor and control your energy use in real-time, helping you identify inefficiencies and shift consumption to cheaper periods. Read more here: Best Home Energy Monitoring Systems in Australia 2026: Unlock $1,000+ Annual Savings.
How to Compare and Switch Effectively
- Gather Your Bills: Have your recent electricity bills handy. They contain crucial information like your usage, tariff type, and National Meter Identifier (NMI).
- Use Government Comparison Tools:
- Energy Made Easy: For NSW, QLD (SE), SA, ACT, TAS.
- Victorian Energy Compare: For Victoria.
- Understand Your Tariff: Are you on a flat rate, time-of-use (TOU), or controlled load? Your usage patterns might make one tariff significantly cheaper than another. With new TOU and Solar Sharer offers, this is more important than ever.
- Look Beyond the Headline Discount: Focus on the total estimated annual cost, not just percentage discounts. Retailers often offer large discounts off inflated standing offers.
- Check for Fees: Be aware of any exit fees, late payment fees, or credit card surcharges. Many retailers offer Energy Plans No Lock-In Contracts Australia 2026: Complete Guide, providing greater flexibility.
- Review Regularly: The market is dynamic. Make it a habit to review your plan every 6-12 months, especially around the July 1st price resets.
Bottom Line
The July 2026 electricity price changes offer a mixed bag, with reductions for most DMO/VDO customers in NSW, SE QLD, and Victoria, but a slight increase for SA residential flat rates. Critically, the universal federal energy bill relief has ended, making state-specific concessions and proactive plan comparison more important than ever. By leveraging government comparison websites like Energy Made Easy and Victorian Energy Compare, understanding your consumption patterns, and exploring energy-saving upgrades, Australian households can effectively navigate the current energy landscape and secure significant annual savings, potentially hundreds of dollars.
Don’t assume your current plan is the best. The market is competitive, and retailers are eager to attract new customers. Take action now to compare, switch, and make your electricity bill work harder for you.