Millions of households will be receiving letters from their energy providers in the next few weeks, as retailers update customers on changes to energy pricing coming into effect from 1 July, which for the majority of customers is expected to be a hike.
The letters come on the back of the decision by the energy regulators to increase the majority of default prices for 2025-26, which will see standard energy plans (without a controlled load) rise by up to $228 in the new financial year.
Standard plans, or default offers, are the contracts offered to customers who can’t or don’t shop around, with the maximum price set by energy regulators. Market contracts, which more than 90% of energy customers are on, have prices largely determined by the retailers, and are expected to also increase.
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What could energy prices look like after 1 July?
Energy retailers use the default pricing as a benchmark for their market contracts. If market electricity prices broadly follow these price changes, as expected, the average annual price for electricity could increase by up to $191, according to our research.
| Estimated price changes from 1 July for average electricity bill | |||
| City | Default pricing change | Estimated market change | Estimated new average price from 1 July |
| Sydney (Ausgrid) | +8.6% | +$145 | $1,830 |
| Melbourne (Citipower) | +6.2% | +$83 | $1,421 |
| Brisbane (Energex) | +3.7% | +$72 | $2,019 |
| Adelaide (SA Power Networks) | +3.2% | +$70 | $2,247 |
| Canberra (Evoenergy) | +8.5% | +$191 | $2,436 |
Source: Canstar Blue. Prices are estimates based on the percentage change per distribution network for the default prices, then applied to the average electricity price for single-rate plans on the Canstar Blue database as at 12/06/2025. Average prices are based on the average usage as determined by the energy regulators. Does not take discounts or rebates into account.
What households should look for in the letter from their provider
Energy retailers changing their prices from 1 July will be contacting impacted customers over the next few weeks to outline the price changes.
One of the most important pieces of information for customers to look out for in their letter is what the new plan pricing will be compared to the reference price.
Where and how this is displayed in the letter will differ among retailers, but it will be the key clue in helping households understand how competitive their new plan is. It will look similar to:
“After the change, your [plan name] will be X% less than the reference price”
The greater the difference a plan is below the reference price, the more competitive it is.
Analysis of plans on the CanstarBlue.com.au database shows that the average difference for a household in Sydney is 7% lower than the reference price, or up to 8% lower for Melbourne. However, customers could switch to a plan that is up to 27% lower than the reference price.
| Average vs biggest difference to reference price | ||
| Average plan difference to reference price | Biggest plan difference to reference price | |
| Sydney | 7% lower | 23% lower |
| Melbourne | 8% lower | 27% lower |
| Brisbane | 6% lower | 27% lower |
| Adelaide | 2% lower | 16% lower |
| Canberra | 8% lower | 24% lower |
Source: Canstar Blue. Averages are based on all single-rate plans in the Canstar Blue database. Conditional discounts may apply. Reference price comparisons based on Ausgrid (Sydney), Citipower (Melbourne), Energex (Brisbane), SA Power Networks (Adelaide) and Evoenergy (Canberra).
Next month’s price changes come on the back of price hikes of up to 20% since 2023
The anticipated price hikes to energy bills come on the back of two years of price increases across most networks, which has seen the average annual electricity bill increase by as much as $360 since 1 June 2023.
| Change to average annual electricity prices
1 June 2023 – 1 June 2025 |
||
| City | Change $ | Change % |
| Sydney | +$184 | +12% |
| Melbourne | +$107 | +9% |
| Brisbane | +$307 | +19% |
| Adelaide | +$360 | +20% |
| Canberra | +$141 | +7% |
Source: Canstar Blue. Averages are based on all single-rate plans in the Canstar Blue database. Conditional discounts may apply. Reference price comparisons based on Ausgrid (Sydney), Citipower (Melbourne), Energex (Brisbane), SA Power Networks (Adelaide) and Evoenergy (Canberra).
Don’t let bill shock stop you from saving
Canstar Blue data insights director, Sally Tindall, says, “The cold hard truth is that electricity price hikes are pretty much inevitable in states such as New South Wales, Queensland and South Australia this winter after the regulator approved hikes to the reference prices across all networks in these states.”
“Opening up a letter or email about a price rise is never fun, but it’s something you should grit your teeth and do, rather than leave it in the pile of unopened emails.
“The exact costs for your daily supply charge and electricity rates are up to each provider, however, unless you’re on an embedded network or in a state where there are limited options, this is one bill you can, and should, take control of.
“Electricity bills can often be ridiculously confusing, with daily supply charges, tiered electricity rates, time of day pricing and whether you’ve got a controlled load. However, if you just want to compare your options without getting into the weeds, the reference price is your friend.
“Providers have to tell you where the cost of your plan sits compared to the reference price and that’s one line you should take particular notice of.
“Understand your current discount in relation to the reference price and use it to find a better deal.
“In Sydney, single rate plans are, on average, 7 per cent lower than the reference price, however, there are plans available that are up to 23 per cent lower than the regulator’s benchmark. In Brisbane, the gap is even wider, with the average discount listed at 6 per cent, while the highest is 27 per cent.”
Compare electricity prices
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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