Electricity bills on a flat rate plan across NSW and South-East Queensland will drop by up to 7.2% from 1 July following today’s release of the final default electricity prices for 2026-27.
For a typical household this will translate into a savings of up to $155 over the next financial year, according to the Australian Energy Regulator (AER).
Households in South Australia will not be as lucky. Default electricity prices will rise by up to 1.4%, or $33 extra for the average household on a flat rate plan.
Victorian households will see their default prices drop by up to 8%, with its regulator publishing its final prices yesterday.
Final electricity prices: | ||||
|---|---|---|---|---|
State | Distributor | New annual price | Change from | |
NSW | Ausgrid | $1,899 | -$66 | -3.4% |
Endeavour Energy | $2,328 | -$83 | -3.4% | |
Essential Energy | $2,604 | -$137 | -5.0% | |
South East QLD | Energex | $1,988 | -$155 | -7.2% |
SA | SA Power Networks | $2,334 | +$33 | +1.4% |
Source: AER. Based on domestic flat tariff for the 2026-27 financial year for a residential property without a controlled load. The AER’s average household electricity use is determined by the regulator and varies across networks.
Who will this impact?
Today’s price changes for 2026-27 will directly impact those households on their provider’s default offer. These plans are designed as a safety net for those who can’t or don’t shop around for their electricity. This is as few as 7% in NSW, but as high as 17% in Victoria.
Percentage of households on a | |
|---|---|
NSW | 7% |
VIC | 17% |
QLD (south east) | 10% |
SA | 8% |
Source: AER, ESC.
Impact to market prices
The default prices set by the regulators also act as a benchmark for all other electricity plans, the majority of which are more competitively-priced.
While the new prices take effect on 1 July for customers on a default plan, prices for the rest of the market are likely to change throughout July and August.
However, what remains to be seen is whether providers will pass through these price drops to their existing customers that aren’t on a default plan, and if so, by how much.
Customers should not wait until 1 July to save
While annual savings of up to $155 are welcome, Canstar analysis shows households on default plans could save far more in a year by switching to one of the lowest-priced plans today, without having to wait until the price hikes take effect.
Indicative savings from | ||
|---|---|---|
$ (annual) | % | |
Sydney | +$507 | 26% |
Melbourne | +$391 | 25% |
Brisbane | +$533 | 25% |
Adelaide | +$596 | 26% |
Canberra | +$668 | 25% |
Source: Canstar - Potential savings are indicative estimates based on single rate electricity plans on Canstar using the reference usage set by the AER and ESC, Costs based on the estimated lowest possible price a customer would be charged in the next 12 months, assuming all conditional discounts are met. Assumes prices for lowest rate plans change inline with new default prices in dollar terms.
New rules for retailers also in place from 1 July
A series of new electricity rules will also come into place from 1 July, with the aim of helping households compare and switch electricity plans. These new rules include:
- Limit price hikes to no more than once a year.
- Customers on a plan that includes a temporary discount cannot roll on to a plan that’s higher than the default.
- Retail fees for hardship customers will be banned, except for network charges.
- Hardship customers must be moved to a provider’s lowest cost plan.
Final pricing for ‘free’ electricity plan revealed
From 1 July, retailers will be required to offer customers with a smart meter the option of a “Solar Sharer” plan, which offers free electricity for three hours a day between:
- 11am and 2pm for NSW and south east Queensland.
- 12pm to 3pm for South Australia.
While the attraction of free electricity will be a drawcard, households should be warned, the default electricity rates in peak hour can be considerably higher.
For example, in Sydney on the Ausgrid network, customers on a default plan are paying a flat rate of 33 cents per kilowatt hour (kWh).
On the Solar Sharer default offer, however, they’ll have three free hours of electricity at a rate of 0 cents per kWh, their off-peak rate would be 28 cents between 2pm and 3pm, as well as 9pm to 11am, while the peak rate would be 64 cents between 3pm and 9pm per kWh.
Default electricity rates – flat rate plan vs Solar Sharer Offer
Solar Sharer Offer - | |||
|---|---|---|---|
Free hours: | Off peak: | Peak: | |
Solar sharer (kWh) | 0c | 28c | 64c |
Flat rate (kWh) | 33c | 33c | 33c |
Source: AER. Prepared by Canstar. Note: Ausgrid does not have a peak period in April, May, September and October. Supply charge for flat rate plan: 166.23c, for solar sharer offer: 176.41.
Remember: the default offer is a safety net, not a competitive deal
Canstar’s Data Insights Director, Sally Tindall, says, “It is a huge relief to see the regulator shift electricity prices in reverse in New South Wales and South East Queensland, with potential savings of up to $155 a year for a typical household on a default plan.”
“However, it's important to remember that the default offer is a safety net, not a competitive deal. Customers on these plans should not wait until 1 July to get relief from the regulator, but instead, unlock much deeper savings today by shopping around.
“Lower wholesale electricity costs are driving prices down despite the recent turmoil in global energy markets as a result of the war in the Middle East.
“South Australians, however, haven’t been as lucky this time around, with default prices to rise by 1.3 per cent from 1 July for those on a flat rate plan – a bitter pill to swallow as the state grapples with noticeably higher wholesale electricity prices.
“The current smart meter rollout across NSW, south east Queensland and South Australia is taking a toll on overall costs with the program set to continue until 2030 – a liability Victoria no longer has to bear considering it finished its rollout over a decade ago.
“While this is putting pressure on network costs in the short-term, the transition to remotely-read meters that can help households understand their electricity use in real time is an investment that should pay off in the longer term.
“The government’s Solar Sharer Offer is an innovative proposal, designed to encourage those who don’t have solar panels to shift more of their electricity use to the middle of the day. However, it comes with plenty of caveats and potential landmines. Whether households will come out ahead will depend on their lifestyle.
“For starters, you’ll need a smart meter to qualify and even then you’ll want to take a good look at the rates you’ll be paying for the remainder of the day, because while it might be free while you’re eating your lunch, it could well cost you an arm and a leg at 6pm when you want to turn the heater on.”
