Australian households and small businesses on default electricity plans are set to see varied changes to their bills from July 1, 2026, following the Australian Energy Regulator’s (AER) final Default Market Offer (DMO) determination for the 2026-27 financial year. While most customers in New South Wales and South East Queensland will experience price reductions, South Australian households face a modest increase.
Released on May 26, 2026, the AER’s DMO 8 determination confirms that residential flat rate standing offer prices will fall by between 3.4% and 7.2% across NSW and SE Queensland. However, South Australian residential customers on flat rate tariffs will see a 1.4% increase, equating to approximately an additional AUD$33 annually.
For those with smart meters on time-of-use standing offers, the news is more consistently positive, with price reductions across all three regions, including South Australia. The largest residential savings are projected for South East Queensland, with decreases of up to 10.7%, potentially saving customers up to AUD$229 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,” said AER Chair Clare Savage. “The reductions compared to last year reflect easing costs across most components of the DMO, particularly in wholesale energy, where we’ve seen lower electricity contract prices, reduced spot price volatility, and increased output from wind and battery generation during evening peaks.”
Small businesses are largely in a better position, with reductions across all three DMO regions. Price decreases for small businesses range from 6.8% to 20.9%, depending on the specific region and whether they are on a flat rate or time-of-use tariff. For instance, some NSW small businesses could save up to AUD$1,303 annually, while South Australian small businesses might see savings of up to AUD$673.
What’s Driving the Price Changes?
The AER attributes the overall decrease in DMO prices primarily to easing wholesale electricity costs. Factors contributing to this include lower electricity contract prices, reduced spot price volatility in the National Electricity Market, and increased generation from wind and battery storage. Furthermore, environmental scheme costs have seen sharp reductions, and retail operating costs have eased compared to previous years.
While network charges, which constitute a significant portion of electricity bills (39% to 54% of typical DMO costs), have generally risen, their impact was outweighed by the substantial drops in wholesale and environmental costs in most areas.
The New Solar Sharer Offer
A significant new component of the DMO 8 determination is the introduction of the Solar Sharer Offer (SSO). This opt-in electricity plan, available from July 1, 2026, is designed for households with smart meters in NSW, SE QLD, and SA, regardless of whether they have rooftop solar panels.
The SSO provides three hours of free electricity daily during the middle of the day – specifically 11 am to 2 pm in NSW and SE QLD, and 12 pm to 3 pm in SA. This initiative aims to help households utilise abundant low-cost solar energy flowing through the grid and reduce their overall electricity costs by shifting usage to these free periods. The offer includes a daily cap of 24 kWh for free power.
Retailers will be required to regulate the SSO price, ensuring its annual cost aligns with the time-of-use DMO tariff in each distribution zone, providing consumers with a transparent and fair deal outside the free power window. This reform is part of broader government efforts to strengthen the DMO framework and improve consumer protections.
Households interested in optimising their energy consumption and potentially benefiting from offers like the Solar Sharer Offer should consider how Smart Home Energy Systems: Slash Your 2026 Australian Electricity Bills by Up To 30% can help manage usage effectively. For those considering solar, understanding What Solar System Size Do You Really Need in Australia 2026? Future-Proofing for EVs & Electrification is crucial.
State-by-State Residential DMO Price Changes (Flat Rate, July 2026)
| State/Region | Distributor | Old Annual Price (approx.) | New Annual Price (approx.) | Change (AUD$) | Change (%) |
|---|---|---|---|---|---|
| New South Wales | Ausgrid | AUD$1,965 | AUD$1,899 | -AUD$66 | -3.4% |
| New South Wales | Endeavour Energy | AUD$2,411 | AUD$2,274 | -AUD$137 | -5.0% |
| South East Queensland | Energex | AUD$2,143 | AUD$1,988 | -AUD$155 | -7.2% |
| South Australia | SA Power Networks | AUD$2,301 | AUD$2,334 | +AUD$33 | +1.4% |
Note: Figures are based on typical residential flat rate standing offers without controlled load and are approximate.
What This Means for Your Bill
While the DMO sets a maximum price, it’s important to remember that market offers are typically more competitive. The AER states that some customers on the DMO could save up to 13% by switching to a mid-market offer. Retailers are also mandated to inform customers at least every 100 days if a better plan is available.
Customers who haven’t reviewed their energy plan recently are encouraged to compare offers through independent services like Energy Made Easy to ensure they are on the best possible deal. For those facing persistent challenges with energy costs, resources like Navigating Australia’s Energy Bill Relief and Support in 2026: A Comprehensive Guide can provide valuable assistance.
The DMO applies to approximately 463,000 households, representing about 7.8% of residential customers, who are on standing offer contracts. The changes come into effect on July 1, 2026.