Electricity price hikes arriving in 36 days’ time as regulators set DMO & VDO

Fact Checked

Household power bills are set to rise by up to $228 in the next financial year as the energy regulators today announced the final default market prices for 2025-26.

From July 1, the annual cost of electricity for an average household on a default plan in New South Wales, south east Queensland and South Australia will increase by between $71 and $228, depending on the network households are on (based on plans without a controlled load).

Today’s finalised prices from the Australian Electricity Regulator (AER) are in some cases up to $28 higher than the draft prices published by the regulator in March of this year.

Final DMO prices in NSW

Final DMO prices in SEQ

Final DMO prices in SA

Source: AER. Prices are estimates for a residential property without a controlled load. Electricity usage is based on an average household as determined by the regulator and varies across the networks.

Final VDO prices in VIC

Victoria’s Essential Services Commission has also finalised its prices for the 2025-26 financial year, with changes from a drop of $26 to an increase of $90 across the five electricity zones operating in Victoria.

The Commission has said the average across the five networks is a 1% rise from last year’s prices ($20 annually for the average household).

Source: ESC. Average bill for domestic customers 4000kWhr/yr. Based on domestic flat tariffs.

Why are prices rising in NSW, SE QLD, SA and some of VIC?

Wholesale costs – the price retailers pay to buy electricity from the energy market – and network costs – the price of transporting electricity – are two of the largest contributors to the price increases.

The AER has also said retail costs, such as the cost of billing customers, running call centres, acquiring new customers, managing defaults and the roll out of smart meters, are adding to overall increases.

In Victoria, where the new prices are rising by, on average, 1.2% year-on-year, the Essential Services Commission has said that “…lower environmental costs, as well as a lower retail operating margin, are offset by the increases in network costs, retail operating costs and wholesale electricity costs.”

What are default market offers and how do they impact prices?

The Default Market Offer (DMO) and Victorian Default Offer (VDO) reflect the maximum price electricity retailers can charge customers on default contracts and act as a safety net for those customers who don’t shop around or can’t shop around.

The two prices they set include what’s known as a daily supply charge, which is the cost of being connected to the grid, and a rate, or rates, for how much electricity is consumed (per kilowatt hour).

The default offers also serve as a benchmark to help consumers compare plans. When advertising the cost of any electricity plan, retailers must use the reference price as a comparison, for example: ‘15% less than the reference price’.

While only a minority of customers (approximately 8%) are on default offers, energy retailers often adjust the rates of their popular electricity plans in line with the default prices, which means many electricity customers can expect a price increase, come July 1.

• NSW
• VIC
• QLD
• SA

Here are some sponsored 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 energy 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 and to see other products in our database that may be available. 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.

Sponsored Products

Based on the general usage^ in the Ausgrid network the AER reference price is: $1,810 / year

Residential Netflix Plan Basic Plan Information $200 electricity credit when you join online. Get $96 RRP of Netflix value included each year with the AGL Netflix Plan. T&C’s Apply.

9% Less than reference price

$1,651 Price/year (estimated)

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Qantas Red Saver Basic Plan Information Switch to Qantas Red Saver Earn 2 Qantas Points per $1 spent on your energy bills when you pay on time. Sign up now! T&C’s Apply.

15% Less than reference price

$1,537 Price/year (estimated)

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View all electricity plans listed on Canstar Blue

*^View important information

Here are some sponsored 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 and to see other products in our database that may be available. 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.

Sponsored Products

Based on the general usage^ in the Citipower network the VDO reference price is: $1,456 / year

Residential Netflix Plan Basic Plan Information $200 electricity credit when you join online. Get $96 RRP of Netflix value included each year with the AGL Netflix Plan. T&C’s Apply.

15% Less than VDO

$1,260 Price/year (estimated)

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Lumo Energy | Value Basic Plan Information Sign up to the Lumo Value plan With fixed rates until 30 Sept. 2026. Flip the switch with rates that’ll light up your day! T&C’s Apply.

24% Less than reference price

$1,107 Price/year (estimated)

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View all electricity plans listed on Canstar Blue

*^View important information

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our 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 and to see other products in our database that may be available. 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.

Sponsored Products

Based on the general usage^ in the Energex network the AER reference price is: $2,066 / year

Residential Netflix Plan Basic Plan Information $100 electricity credit when you join online. Get $96 RRP of Netflix value included each year with the AGL Netflix Plan. T&C’s Apply.

10% Less than reference price

$1,888 Price/year (estimated)

Go to Site

View all electricity plans listed on Canstar Blue

*^View important information

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our 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 and to see other products in our database that may be available. 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.

Sponsored Products

Based on the general usage^ in the SA Power network the AER reference price is: $2,230 / year

Residential Netflix Plan Basic Plan Information $100 electricity credit when you join online. Get $96 RRP of Netflix value included each year with the AGL Netflix Plan. T&C’s Apply.

6% Less than reference price

$2,036 Price/year (estimated)

Go to Site

View all electricity plans listed on Canstar Blue

*^View important information

What should households do?

Households should look out for an email from their provider between now and July to see if their prices are changing and by how much.

This is often a good time to compare, however, households don’t have to wait to take action.

Savvy customers could switch and save today, and then re-review their electricity plans once the dust settles post-August, provided they are not on a lock-in contract (the majority of plans have no fixed contract).

Analysis from Canstar Blue shows that switching from the average annual cost energy plan to the cheapest could save a household up to $445 in a year, for those living in the nation’s capital.

Potential savings on annual electricity costs

Source: www.canstarblue.com.au – 26/05/2025. Based on single-rate electricity plans on Canstar’s database; excluding solar-only plans. Annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discounts offered (if any) have been met. Representative customer based on the reference usage for NSW, VIC, QLD, ACT, and SA (per Victorian Default Offer for VIC, ICRC for ACT and AER for others) or the median usage in the Office of the Tasmania Regulator’s report, Typical Electricity Customers in Tasmania 2022 for TAS.

Canstar Blue data insights director, Sally Tindall, says, “These electricity price hikes will knock the wind out of the sails for many families, just when they thought they’d turned a corner in the cost-of-living crisis.”

“Price hikes of up to $228 for an average household will be too much for some families to bear, particularly as we enter one of the most energy-intensive periods of the year.

“Victoria has been spared much of the pain, with an average increase across all five networks of just 1 per cent. While price hikes of any amount are never welcome news, Victorians are set to fare much better than their cousins in New South Wales, who are seeing price rises of up to 9.1 per cent.

“The cost of producing electricity and maintaining the network are two of the biggest factors pushing prices up, alongside the rising cost of doing business for retailers, which includes things like staffing call centres, managing bills and payment networks and the cost of customers falling behind on their bills.

“Figures from the AER show almost 3 per cent of customers are behind on their electricity bills, with the average debt totalling $1,395 – a figure that could increase once these rate hikes set in.

“While the federal rebate will offset some of this rate pain over the next six months, with no current plan to extend this relief, many households will see their bills spike in the new year.

“If you get a note from your provider telling you your electricity prices are on the rise, use it as an opportunity to check whether there’s a cheaper plan out there.

“In fact, you don’t even have to wait for the 1 July deadline. Switching now should not preclude you from checking again in a few months time after the dust has settled on the price hikes, provided you’re not on a plan with a lock-in contract.

“Our research shows switching from an average priced plan to one of the lowest in the market could save you over $400 a year in some cases – this for some households could be enough to mitigate the upcoming price hikes.

“If you can’t pay your electricity bill, contact your provider straight away and ask what options might be available. Every electricity provider has an energy hardship program they must offer you to help you get back on track.”

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