KEY POINTS
- A standing offer is the electricity plan given to customers by default if they don’t select a new one after their existing plan expires.
- Standing or default offers feature rates that are set by Australia’s energy regulators to protect customers from overpaying for electricity if they don’t choose their energy plans.
- Standing offers typically reflect the most an energy retailer can charge you for electricity, so it’s important to shop around for more competitively priced or discounted energy plans.
On this page:
What is an electricity standing offer?
A standing offer (also known as a default offer) is the energy plan given to customers by default if they don’t engage with the energy market.
Both standing and default offers act as a ‘safety net’ offer and price cap that all energy retailers must legally offer to customers who don’t choose a market offer.
How do electricity standing offers work?
Standing or default offers feature rates based on the reference price, which differs between states and distributor networks.
The reference price is set by the Australian energy regulators to protect Aussies from paying unfair prices for electricity.
In NSW, SEQ and SA, the reference price is called the ‘Default Market Offer’ (DMO) and is set by the Australian Energy Regulator (AER). In VIC, it’s called the ‘Victorian Default Offer’ (VDO) and is determined by the Essential Services Commission (ESC).
The DMO and VDO are set every 12 months, with each annual offer beginning July 1 in each state. They also serve as a benchmark for consumers to easily compare the average annual costs of all electricity plans available in their area.
As such, standing offer prices will differ across distribution networks and states, but standing offers from different retailers within the same network will share the same price.
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.
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22% Less than reference price |
$1,542 Price/year (estimated) |
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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.
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10% Less than VDO |
$1,392 Price/year (estimated) |
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How do I know if I’m on a standing offer?
If you’ve been with the same electricity retailer for more than 12 months and haven’t signed a new contract, you may be on a default offer.
You may also be on a default or standing offer if:
- You have never signed up for an electricity contract.
- You’ve moved to a new address and have stayed with the energy retailer that was already servicing the property.
- You’ve specifically asked for a default offer.
Standing offers vs market offers: what’s the difference?
Market offers are energy plans with rates, terms, conditions and discounts freely set by energy retailers themselves.
In contrast, standing offers generally reflect the maximum a retailer can charge you for electricity, with no accompanying discounts or incentives.
While energy providers can choose to price their market offers higher than the reference price in the states/networks they service, this is rarely seen.
If you’re not on a market energy offer, then you’re most likely on a standing offer, meaning you’re possibly paying more than you should for electricity.
Market offers typically feature enticing terms and discounts such as:
- Conditional discounts
- Bill credits
- Competitive usage and supply rates
- Sign-up bonuses and discounts.
Are electricity standing offers worth it?
Because default offers are generally the most expensive electricity plan in an energy retailer’s catalogue, standing offers shouldn’t be your first pick.
Default offers, like the reference prices they are based on, are more useful as a yardstick for gauging the competitiveness of other market offers.
If you’re on a default offer, you stand to potentially save hundreds of dollars a year by switching contract types – and you won’t necessarily need to switch energy retailers.
Under the ‘Best offer messaging’ section in your latest energy bill, your provider is legally required to disclose how their best market offer’s annual cost compares to your default offer, followed by instructions on how to switch plans.
But if you’re prepared to do some research, you may be able to save even more by switching from your existing default offer to a competing retailer’s market offer.
Canstar Blue breaks down each state below, comparing the annual cost of default offers to the cheapest market offers available at the time of publication.
Related: How to reduce your power bills
Compare energy market offers
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.
How much are standing offers?
Note: These tables should be used as a general guide only.
The DMO and VDO changed on July 1, 2025 and will change again on July 1, 2026.
New South Wales
Here is a selection of market deals in our database for NSW. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. See here for further information on the Reference Price, which in this comparison assumes general energy usage of 3900kWh/year, meaning the Reference Price is $1,965/year for a residential customer on a single rate tariff. Use our comparison tool for a specific comparison. Our database may not cover all deals in your area, and please check retailer websites for up to date information. Pricing below is subject to change.
| Electricity retailer | Annual DMO | Annual cheapest market offer | Annual savings |
|---|---|---|---|
| Energy Locals | $1,956 | $1,818 (Online Member) | $138 |
| Sumo | $1,952 | $1,667 (Sumo Local) | $285 |
| Ovo Energy | $1,883 | $1,613 (The One Plan) | $270 |
| Red Energy | $1,945 | $1,614 (Red BCNA Saver) | $331 |
| Powershop | $1,927 | $1,589 (Switch Saver) | $338 |
| Average | $1,932 | $1,660 | $272 |
*Price assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Estimated price includes any conditional discounts that may be available. Pricing based on Ausgrid network in Sydney, but prices differ between distribution zones. August 2025.
Victoria
Here is a selection of market deals in our database for VIC. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Plans are listed in order of lowest price first. This comparison assumes general energy usage of 4000kWh/year, meaning the VDO is $1,546/year for a residential customer on a single rate tariff. Use our comparison tool for a specific comparison. Our database may not cover all deals in your area, and please check retailer websites for up to date information. Pricing below is subject to change.
| Electricity retailer | Annual VDO | Annual cheapest market offer | Annual savings |
|---|---|---|---|
| Lumo Energy | $1,547 | $1,107 (Value) | $440 |
| Alinta Energy | $1,457 | $1,361 (HomeSaver On) | $186 |
| Ovo Energy | $1,547 | $1,369(The One Plan) | $178 |
| Tango Energy | $1,457 | $1,425 (eSelect) | $32 |
| Pacific Blue | $1,545 | $1,425 (BlueFirst) | $120 |
| Average | $1,510 | $1,337 | $191 |
*Price assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Estimated price includes any conditional discounts that may be available. Pricing based on Citipower network in Melbourne, but prices will differ between distribution areas. August 2025.
Queensland
Here is a selection of market deals in our database for SEQ. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Plans are listed in order of lowest price first. This comparison assumes general energy usage of 4600kWh/year, meaning the Reference Price is $2,143/year for a residential customer on a single rate tariff. Use our comparison tool for a specific comparison. Our database may not cover all deals in your area, and please check retailer websites for up to date information. Pricing below is subject to change.
| Electricity retailer | Annual DMO | Annual cheapest market offer | Annual savings |
|---|---|---|---|
| Sumo | $2,066 | $1,854 (Sumo Local) | $212 |
| Ovo Energy | $2,065 | $1,824(The One Plan) | $241 |
| Energy Locals | $2,135 | $1,948 (Online Member) | $187 |
| Powershop | $2,100 | $1,779 (Switch Saver) | $321 |
| Momentum Energy | $2,142 | $1,827 (Warm Welcome) | $315 |
| Average | $2,101 | $1,846 | $255 |
*Price assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Estimated price includes any conditional discounts that may be available. Pricing based on the Energex network in Brisbane. but prices will differ between distributions areas. August 2025.
South Australia
Here is a selection of market deals in our database for SA. These costs are based on the SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Plans are listed in order of lowest price first. This comparison assumes general energy usage of 4000kWh/year, meaning the Reference Price is $2,301/year for a residential customer on a single rate tariff. Use our comparison tool for a specific comparison. Our database may not cover all deals in your area, and please check retailer websites for up to date information. Pricing below is subject to change.
| Electricity retailer | Annual DMO | Annual cheapest market offer | Annual savings |
|---|---|---|---|
| Engie | $2,301 | $1,841 (Greenpower Elec) | $460 |
| Energy Locals | $2,293 | $2,086 (Home Classic) | $207 |
| Momentum Energy | $2,299 | $1,970 (Warm Welcome) | $329 |
| Lumo Energy | $2,236 | $1,995 (Lumo Basic) | $241 |
| Power Shop | $2,302 | $2,102 (Power House) | $200 |
| Average | $2,286 | $1,998 | $287 |
*Price assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Estimated price includes any conditional discounts that may be available. Pricing based on SA Power network in Adelaide, but prices differ between distribution areas. August 2025.
How can I find the cheapest energy offer?
While market offers tend to be cheaper than standing offers in electricity, not all market offers are the same.
When you’re comparing market offers, there are a handful of things to look out for:
- Usage and supply rates: Some energy retailers hide higher-than-average usage charges and supply rates behind seemingly generous discounts. Market offers may even have higher rates than the retailer’s default offer prices. Make sure you check the usage and supply rates for any offer you’re considering.
- Hidden fees and charges: Study each plan’s energy fact sheet for any hidden fees and charges, such as late payment or disconnection fees.
- Tariff structure: An electricity tariff refers to how your electricity usage is priced. It’s especially important to choose the right tariff for your household based on its energy usage. For more information, visit Canstar Blue’s guide on electricity tariffs.
- Benefit periods: Most energy retailers will only supply advertised discounts for a benefit period of 12 months to two years. After this period expires, customers will need to renew their plan or be forced to pay higher rates, usually at the default price respective to their state and distribution network.
You can check the usage charges and supply rates of the plan you are currently on and compare them to a range of market offers available in your area using Canstar Blue’s free electricity comparison tool below.
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