Prices

Australian Electricity Prices: What's Happening in 2026

Prices are finally falling for some Australians after years of increases — but not everyone will benefit. Here's the full picture by state.

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Stats updated: 2026-10-18

Fall by 3.4% to 5.0%
NSW DMO Residential Change
From 1 July 2026
Fall by 7.2%
SE QLD DMO Residential Change
From 1 July 2026
Increase by 1.4%
SA DMO Residential Change
From 1 July 2026
Fall by 5.0%
VIC VDO Residential Change
From 1 July 2026

How will the Default Market Offer (DMO) and Victorian Default Offer (VDO) affect my electricity bill from 1 July 2026?

From 1 July 2026, the Australian Energy Regulator's (AER) Default Market Offer (DMO) has seen residential electricity prices fall by 3.4% to 5.0% in New South Wales (saving up to $137 annually) and by 7.2% in South East Queensland (saving approximately $155 annually). South Australian households, however, face a modest increase of 1.4% (around $33 annually). In Victoria, the Essential Services Commission's (ESC) Victorian Default Offer (VDO) has led to an average 5.0% decrease for residential customers, equating to an average annual saving of approximately $84. Additionally, the new Solar Sharer Offer, effective 1 July 2026, provides eligible smart meter households in DMO regions with three hours of free power daily between 11 am and 2 pm.

What government rebates and assistance are available to help with electricity costs in 2026-27?

Australian households can access various state-specific rebates for the 2026-27 financial year. In the ACT, eligible residents can receive an $800 Electricity, Gas and Water Rebate annually, alongside low-interest loans up to $20,000 for energy-efficient upgrades through the Sustainable Household Scheme. New South Wales offers rebates such as the Low Income Household Rebate ($285), Family Energy Rebate (up to $180), and Seniors Energy Rebate ($200). South Australia provides an Energy Bill Concession of up to $291.27 and a Medical Heating and Cooling Concession of $291.27. Victorian concession card holders can receive an ongoing annual rebate of approximately $174 on electricity bills, and rebates up to $1,400 are available for eligible heat pump or solar hot water systems.

What are the most effective ways to reduce my electricity bill in Australia right now?

One of the most impactful ways to reduce your electricity bill is to actively compare and switch energy plans, as competitive market offers are often 18% to 27% cheaper than the Default Market Offer or Victorian Default Offer. Improving home energy efficiency through insulation, draught sealing, and upgrading to energy-efficient appliances like heat pump hot water systems can lead to significant savings, potentially reducing energy use by up to 80% for hot water. For homeowners, installing solar panels and battery storage can drastically cut grid reliance, with federal incentives like the Cheaper Home Batteries Program offering substantial discounts, such as approximately $3,631 on a 13.5 kWh battery in South Australia.

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