Piggy bank by electricity bill

Default power prices to drop July 1: How much will you save?

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Australian households on standing offers could see as much as $190 shaved off their annual electricity bills from July 1, with the country’s energy regulators locking in default energy prices for 2024-25.

The Australian Energy Regulator (AER) and Essential Services Commission (ESC) released their final determinations for default electricity offers for homes and small businesses. The majority of customers on default offers in New South Wales, Victoria and South Australia will see their annual prices drop by between 1% and 6%, although south-east Queensland residents will see minor increases.

While savings will vary based on distribution region and tariff type, residential customers in NSW and SA on the AER’S Default Market Offer (DMO) can expect a year-on-year price decrease of between $17 to $190. SEQ customers on the DMO will see a price rise of $37 to $83. Victorian customers on the Victorian Default Offer (VDO) can expect to save around $100 when compared to 2023-23 prices.

AER Chair Clare Savage said the reduced DMO was based on changes in electricity network and wholesale costs, as well as the need to protect consumers after several years of market volatility.

“We know and understand that cost-of-living pressures are front of mind for many households and small businesses, and we will continue to protect customers from unjustifiably high prices,” Ms Savage said.

What do the changes mean for your power bill?

The finalised DMO and VDO means more than a million Australian homes and businesses will see annual power bills decrease from July. Combined with the recent $300 energy bill relief payment announced in this year’s federal budget, the move is good news for customers struggling with increasing living expenses.

The DMO and VDO act as price caps for customers on default offers in NSW, Vic, SEQ and SA. A default offer, also known as a standing offer, is a safety net for customers who don’t engage in the energy market. This generally applies to customers who have been with the same plan or provider for more than 12 months and don’t regularly shop around.

AER data shows just under 500,000 homes in DMO markets across NSW, SEQ and SA are currently on default offers. In Vic, the VDO applies to 340,000 residential customers, plus another 180,000 households on embedded networks where the VDO is the maximum charge.

Default offers are available from all energy retailers impacted by the DMO or VDO. The same retailers also have more competitively-priced plans known as market offers, on which the  retailers set their own usage and supply rates. While the July 1 changes will immediately impact default offer customers, households on market offers may also feel the effects, as energy retailers tend to use DMO and VDO changes to revise their plans across the board.

Compare electricity plans in your state

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 3911kWh/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 4613kWh/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 4011kWh/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.

How will electricity prices change in each state?

We’ve listed below the incoming DMO and VDO changes for each relevant state. These have been broken down by costs for households and small businesses based on their distribution network and whether they have a single rate or controlled load tariff.

Final DMO prices in NSW

Residential customers (single rate only)

Distribution Network 2024-25 DMO Prices Annual Change
Ausgrid $1,810 -$17 (-0.9%)
Endeavour Energy $2,209 -$19 (-0.9%)
Essential Energy $2,499 -$28 (-1.1%)

Residential Customers (controlled load)

Distribution Network 2024-25 DMO Prices Annual Change
Ausgrid $2,495 -$67 (-2.6%)
Endeavour Energy $2,787 -$190 (-6.4%)
Essential Energy $2,918 -$59 (-2.0%)

Small Business Customers (single rate only)

Distribution Network 2024-25 DMO Prices Annual Change
Ausgrid $4,597 -$402 (-8.0%)
Endeavour Energy $4,407 -$191 (-4.2%)
Essential Energy $5,718 -$43 (-0.7%)

Source: AER Default Market Offer 2024–25 final determination – May 23, 2024.


What are some of the cheapest plans currently available in NSW?


Final DMO Prices in SEQ

Residential Customers (single rate only)

Distribution Network 2024-245 DMO Prices Annual Change
Energex $2,052 +$83 (+4.2%)

Residential Customers (controlled load)

Distribution Network 2024-25 DMO Prices Annual Change
Energex $2,400 +$37 (+1.6%)

Small Business Customers (single rate only)

Distribution Network 2024-25 DMO Prices Annual Change
Energex $4,246 +$44 (+1.0%)

Source: AER Default Market Offer 2024–25 final determination – May 23, 2024.


What are some of the cheapest plans currently available in SEQ?


Final DMO Prices in SA

Residential Customers (single rate only)

Distribution Network 2024-25 DMO Prices Annual Change
SAPN $2,216 -$63 (-2.8%)

Residential Customers (controlled load)

Distribution Network 2024-25 DMO Prices Annual Change
SAPN $2,746 -$41 (-1.5%)

Small Business Customers (single rate only)

Distribution Network 2024-25 DMO Prices Annual Change
SAPN $5,337 -$512 (-8.8%)

Source: AER Default Market Offer 2024–25 final determination – May 23, 2024.


What are some of the cheapest plans currently available in SA?


Final VDO Prices in Vic

The below graphs have been taken from the ESC and show the average annual change in bills for customers on the VDO across all five of Victoria’s distribution networks.

Residential Customers

VDO energy prices 2024
Image: ESC

Small Business Customers

VDO energy prices 2024 for business
Image: ESC

What are some of the cheapest plans currently available in Victoria?


Can Aussies save money by switching their energy plans?

If you’re currently on a default or standing offer, you don’t need to stick with it. Most default offer customers aren’t locked in, so you’re free to compare deals and switch to a market offer at any time.

Australian energy providers generally use July 1 as a time to re-evaluate all their electricity plans, including their market offers. Knowing that price-conscious customers may be looking to change plans in July, many retailers will offer not just competitive rates but also extras such as discounts or welcome credits.

Aside from switching plans, hardship assistance is also available from all energy retailers.

“Your electricity retailer is obligated to tell you if they can offer you a better deal at least once every three months. Retailers must also assist customers experiencing bill stress,” ESC CEO Sarah Sheppard said. “If you’re having trouble paying your electricity bill, ask your retailer for help.”

Tara Donnelly
Utilities Editor
Tara Donnelly is an internet and mobile expert - sectors she’s spent a decade covering - and also oversees energy and consumer technology content. She holds a Bachelor of Communications from the University of Canberra and has shared her expertise on national media including 9 News, 7 News, Sunrise and the ABC.

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