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Cheaper power prices could be on the way for Australian households, with the country’s energy regulators proposing lower default electricity costs from July 1.
The Australian Energy Regulator (AER) has released its draft determination for energy default offers in 2026-27. The AER’S Default Market Offer (DMO) will impact electricity price caps in New South Wales, South East Queensland and South Australia.
How much less Aussies could pay for electricity from July
The AER's default prices covers the five electricity distribution networks across NSW, SE QLD and SA. Each network supplies power to a different region, which is why households in different areas may pay different amounts for their electricity use.
Customers on all networks are looking at proposed price drops, with SE QLD's Energex network and NSW'S Essential Energy seeing the biggest change. Queenslanders could be paying up to $216 less per year, while Essential Energy customers may pay up to $226 less.
The AER attributes the changes to price reductions across most of the factors that influence the DMO, including wholesale electricity, environmental and retail operating costs.
Draft flat rate electricity price changes: 2026-27 | ||||
State | Distributor | Current price | Draft price | Change |
NSW | Ausgrid | $1,965 | $1,875 | -$90 (-4.6%) |
Endeavour Energy | $2,411 | $2,347 | -$64 (-2.7%) | |
Essential Energy | $2,741 | $2,515 | -$226 (-8.2%) | |
South East QLD | Energex | $2,143 | $1,927 | -$216 (-10.1%) |
SA | SA Power Networks | $2,301 | $2,270 | -$31 (-1.3%) |
Source: AER. Based on domestic flat tariff for the 2026-27 financial year based on residential property without a controlled load. AER average costs which cover NSW, SE QLD and SA are determined by the regulator and vary across networks. | ||||
Time of use pricing
This year, the DMO includes several new reforms, introduced by regulators to allow customers to more easily compare different electricity tariff types. Alongside a flat rate or single rate annual price, the DMO will also include a time of use annual price with peak and off-peak hours. For the Energex, Essential and SA Power Networks, the flat rate and time of use annual prices will be the same, but Ausgrid and Endeavour networks will each have a separate price for each tariff type.
Draft time of use electricity price changes: 2026-27 | ||||
State | Distributor | Current flat rate price | Draft time of use price | Difference |
NSW | Ausgrid | $1,965 | $1,886 | -$79 (-4.0%) |
Endeavour Energy | $2,411 | $2,353 | -$58 (-2.4%) | |
Essential Energy | $2,741 | $2,515 | -$226 (-8.2%) | |
South East QLD | Energex | $2,143 | $1,927 | -$216 (-10.1%) |
SA | SA Power Networks | $2,301 | $2,270 | -$31 (-1.3%) |
Source: AER. Based on domestic flat tariff for the 2026-27 financial year based on residential property without a controlled load. AER average costs which cover NSW, SE QLD and SA are determined by the regulator and vary across networks. | ||||
New tariff caps for usage and supply rates
Regulators will also introduce capped prices for both usage rates (what you pay per kilowatt hour of use) and daily supply rates (the daily rate for being connected to the grid) on standing offer plans. This applies to single rate and time of use tariffs, so will help prevent customers paying excessive usage rates in peak periods.
Tariff caps for flat rate plans: 2026 - 27 | |||
Distributor | Annual price | Daily supply charge | Usage rate |
Ausgrid | $1,875 | 155c/day | 34c/kWh |
Endeavour Energy | $2,347 | 183c/day | 34c/kWh |
Essential Energy | $2,515 | 270c/day | 33c/kWh |
Energex | $1,927 | 176c/day | 28c/kWh |
SA Power Networks | $2,270 | 178c/day | 40c/kWh |
Source: AER, prepared by Canstar.com.au. | |||
Regulators will also introduce capped prices for both usage rates (what you pay per kilowatt hour of use) and daily supply rates (the daily rate for being connected to the grid) on standing offer plans. This applies to single rate and time of use tariffs, so will help prevent customers paying excessive usage rates in peak periods.
Tariff caps for time of use plans: 2026 - 27 | |||
Distributor | Annual price | Daily supply charge | Usage rates |
Ausgrid | $1,886 | 171c/day | 24c/kWh off-peak, 58c/kWh peak |
Endeavour Energy | $2,353 | 183c/day | 37c/kWh off-peak, 12c/kWh solar soak, 45/44c/kWh peak |
Essential Energy | $2,515 | 270c/day | 24c/kWh off-peak, 42c/kWh peak |
Energex | $1,927 | 176c/day | 26c/kWh shoulder, 7c/kWh off-peak, 48c/kWh peak |
SA Power Networks | $2,270 | 178c/day | 33c/kWh off-peak, 56c/kWh peak, 17c/kWh solar soak |
Source: AER, prepared by Canstar.com.au. | |||
Solar Sharer Offer
The DMO will also include the new optional Solar Sharer Offer (SSO), which will be available in NSW, SA and SE QLD from July 1. This is an opt-in plan that comes with three hours of free electricity use each day during the afternoon solar peak. Households can use up to 24 kilowatt hours (kWh) of electricity per day in the three-hour period without incurring usage charges.
Free use periods are:
- NSW: 11am-2pm AEDT, 11am-2pm AEST
- SE QLD: 11am-2pm year round
- SA: 12pm-3pm ACDT, 12-3pm ACST
Draft pricing for Solar Sharer Offer: 2026 - 27 | |||
SSO free usage period | Daily supply charge | Usage charges | |
Ausgrid | 11am - 2pm | 171c/day | 28c/kWh off-peak, 61c/kWh peak |
Endeavour Energy | 11am - 2pm | 183c/day | 39c/kWh off-peak, 46c/kWh peak, 14c/kWh solar soak |
Essential Energy | 11am - 2pm | 270c/day | 27c/kWh off-peak, 45c/kWh peak |
Energex | 11am - 2pm | 176c/day | 27c/kWh shoulder, 8c/kWh off-peak, 50c/kWh peak |
SA Power Networks | 12pm - 3pm | 178c/day | 35c/kWh off-peak, 59c/kWh peak, 20c/kWh solar soak |
Source: AER, prepared by Canstar.com.au. | |||
SSO offer pricing will consist of a daily supply charge, usage charges that apply outside of the three-hour free period, and a ‘reasonable’ usage charge for any electricity used over 24kWh in the free period. On the Ausgrid, Essential Energy and Energex networks, this is the respective off-peak charge; for Endeavour Energy and SA Power Networks customers, this is the respective solar soak charge.
All energy providers with at least 1,000 customers will be required to offer a default SSO, alongside flat rate and time-of-use standing offers. SSO plans will be available to any household with a smart meter, so you won’t need solar panels to sign up.
What is the DMO and how does it impact your power bill?
The DMO, also called a standing offer or default offer, is a regulated electricity tariff available in NSW, SE QLD and SA. It’s designed to be a ‘safety net’ plan for households who don’t shop around or engage with the energy market, and is also used as a reference or comparison price for all other plans. Around 463,000 households (that's 7.8% of residential customers) are currently on a standing offer.
Victoria also has its own regulated standing offer, called the Victorian Default Offer (VDO). The draft VDO was released earlier this month and proposed slightly lower standing offer prices across all five VIC distribution networks.
If you’re not on the DMO or standing offer in the above states, you’re on a market offer. This is an electricity plan with rates set by your energy retailer rather than regulators, and it can include incentives like discounts, credits or other bonuses. Market offers are generally much more competitive than standing offers, which is why you’ll see the estimated average yearly price compared to the DMO and VDO’s reference price when you’re looking at plan details.
The DMO and VDO are revised annually, with new prices applying to standing offer plans from July 1. However, customers who aren’t on standing offers can still feel the impact. Energy retailers tend to use the DMO and VDO as baselines for their own market offer pricing, so will typically adjust their plans and rates across the board once the new default pricing comes into effect.
That’s why July is a crucial time to check your electricity plan and make sure you’re on a good deal. Even moving from an average-priced plan to the cheapest available can save you hundreds, as shown below.
Potential savings switching from average to lowest cost electricity plan over the next 12 months | |||
|---|---|---|---|
Average | Lowest | Savings | |
Sydney | $1,759 | $1,488 | $271 |
Melbourne | $1,445 | $1,199 | $246 |
Brisbane | $1,974 | $1,681 | $293 |
Adelaide | $2,149 | $1,757 | $392 |
Canberra | $2,414 | $2,032 | $382 |
Hobart | $1,338 | $1,229 | $109 |
Source: Canstar.com.au - 19/03/2026. Based on single rate electricity plans on Canstar's database; excluding solar-only plans. One product shown per distribution network. Annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discount offered (if any) have been met. Representative customer based on the reference usage for VIC. | |||
The new rules in NSW, QLD and SA
Alongside changes to default price, regulators have also introduced new consumer protection rules that will come into effect from July. These include:
- Retailers will not be able to increase prices on market offer contracts more than once every 12 months.
- Customers can not be rolled on to a plan higher than the default price once their current electricity plan’s benefits expire.
- Retailers cannot charge unreasonably high penalties if customers don’t pay bills on time.
- Vulnerable customers will no longer be required to pay retail fees (e.g. debit and credit card fees, late payment fees). Other network fees/charges for all customers (e.g. connection and disconnection fees) must also reflect reasonable costs.
What you should do next
The AER and ESC will finalise default pricing in May, so customers have a few months to prepare for the changes. Whether you’re on a standing offer or market offer, it’s a good time to look at moving to a more competitive plan.
Customers who haven’t changed their electricity plan in at least a year are most likely to be affected by default pricing. If you’re not sure, check your power bill to see which plan you're on, and if there’s a Better Offer message from your retailer.
