Australian households in New South Wales and Victoria could see greater relief on their upcoming electricity bills, following new data revealing a sharp decline in wholesale electricity spot prices across the National Electricity Market (NEM) in June 2026. A market review published on July 17, 2026, by Leading Edge Energy indicates that NEM spot prices fell by an average of 63.4% year-on-year to $84.82/MWh in June.
Victoria experienced the most significant reduction, with average spot prices plummeting 74.7% to $66.81/MWh from June 2025. New South Wales also saw substantial drops, with average spot prices falling 67.5% to $83.30/MWh. This fresh data, released in mid-July, underscores a continued moderation in energy costs at the wholesale level, which typically influences retail electricity offers.
Wholesale Price Plunge: A Detailed Look at June 2026
The Leading Edge Energy report highlights that June 2026 marked a “more pronounced step in the moderation of electricity prices” across the NEM. While June 2025 was an exceptionally elevated period for wholesale prices, the current figures represent a broadly normal winter pricing outcome for most states.
“VIC recorded the largest reduction at -74.7%, while SA, despite falling 49.8%, was the only mainland region to close above $100/MWh at $125.73/MWh — driven by a series of market cap events on 21-22 June,” the report stated.
This significant decline was largely attributed to a mild start to winter, which kept demand lower than anticipated. Consistent supply from renewable sources and increased battery dispatch also played a crucial role. Renewable generation increased to 40.0% of total supply in June, driven by stronger wind and hydro output. Victoria, in particular, saw 1,412 intervals (16.3%) record negative prices during the month, with the deepest negative reaching -$614.77/MWh on June 12.
In contrast, South Australia’s spot prices remained elevated due to specific market price cap events in late June, demonstrating regional variances within the broader downward trend.
Impact on Your Retail Electricity Bill
While the Australian Energy Regulator (AER) and the Essential Services Commission (ESC) in Victoria set the Default Market Offer (DMO) and Victorian Default Offer (VDO) respectively for the period starting July 1, 2026, based on forecasts made in May, these new wholesale figures provide a retrospective look at market conditions.
The DMO and VDO serve as a safety net and a reference price, ensuring customers on standing offers pay a regulated maximum. However, these default offers are often not the cheapest available. The AER itself states that market offers are typically up to 20% below the DMO.
| Region | June 2026 Average Spot Price | Year-on-Year Change (June 2025 vs. June 2026) |
|---|---|---|
| Victoria | $66.81/MWh | -74.7% |
| New South Wales | $83.30/MWh | -67.5% |
| Queensland | $71.43/MWh | -57.8% |
| NEM Average | $84.82/MWh | -63.4% |
Source: Leading Edge Energy, June 2026 Electricity Market Review.
For households in NSW and Victoria, the sustained moderation of wholesale prices in June 2026 suggests that competitive market offers from retailers should continue to be attractive, potentially offering savings beyond the announced DMO/VDO reductions. For instance, the VDO for residential customers in Victoria saw an average decrease of $84 per year (5%) from July 1, 2026. However, the substantial drop in wholesale costs indicates that retailers have more headroom to offer compelling deals to attract and retain customers.
Maximising Your Savings in 2026
Consumers, particularly those on standing offers or plans that haven’t been reviewed recently, are strongly encouraged to compare current market offers. Retailers frequently update their market contracts with discounts, incentives, and competitive rates that can significantly undercut the default prices.
Even with the July 1 default price changes, the underlying wholesale market conditions presented in this latest report reinforce the financial benefit of being an active participant in the energy market. For guidance on navigating the options, our comprehensive guide, Choosing Your Australian Energy Provider in 2026: A Definitive Guide, can assist in identifying the best plan for your household.
Additionally, while universal federal energy bill relief ended in December 2025, state-specific concessions and rebates remain available for eligible households, offering further opportunities to reduce overall energy costs. Information on these can be found in resources such as Australian Energy Bill Relief & Utility Concessions 2026: Your Comprehensive Guide.
The consistent trend of lower wholesale prices, particularly in NSW and Victoria, provides a strong signal that competitive retail offers should be abundant. Households that act now to compare and switch plans are best positioned to capitalise on these favourable market conditions and secure tangible savings on their electricity bills through the remainder of 2026.