Australian Electricity Price Index: What Changes on 1 July 2026
From 1 July 2026, electricity prices change across the three Default Market Offer regions. Here is every change, by region, tariff and zone, from the AER's final determination.
By James Baker, founder of EnergyPlans, an independent Australian energy comparison platform. Last updated 5 June 2026.
1 July 2026 at a glance
- Most households on standing offers will pay less. South Australia is the exception.
- NSW residential flat-rate prices fall between 3.4% and 5.0%.
- South East Queensland gets the biggest cut: residential flat-rate prices fall 7.2%.
- South Australia is the only region where flat-rate prices rise, up 1.4%.
- Time-of-use customers save in every region, by up to 10.7% in South East Queensland.
- Small businesses get the largest cuts of all, up to 14%.
- A new Solar Sharer Offer gives eligible households three hours of free daytime power.
Source: AER Final Default Market Offer Determination 2026–27, 26 May 2026.
Households on the standing offer are paying up to $350 a year more than the cheapest plan in their area (EnergyPlans analysis, June 2026).
Price change by region, 1 July 2026
Most DMO regions fall on 1 July 2026; South Australia is the only flat-rate increase.
| Region | Residential flat rate | Time-of-use | Small business |
|---|---|---|---|
| NSW — Ausgrid | down 3.4% | down 3.7% to 7.7% | reductions |
| NSW — Endeavour | down 3.4% | down 3.7% to 7.7% | reductions |
| NSW — Essential Energy | down 5.0% | down up to 7.7% | reductions |
| South East QLD | down 7.2% | down up to 10.7% | down 10.4% to 14.0% |
| South Australia | up 1.4% | down 1.1% | down 6.8% to 12.1% |
NSW electricity price change by distribution zone
Regional NSW gets the largest NSW cut and the biggest time-of-use saving in the country.
| Zone | Covers | Flat rate | Annual saving (flat)* | Time-of-use |
|---|---|---|---|---|
| Ausgrid | Sydney, Central Coast, Hunter | down 3.4% | up to $66/yr | down |
| Endeavour | Western Sydney, Illawarra, Blue Mountains | down 3.4% | up to $83/yr | down |
| Essential Energy | Regional NSW | down 5.0% | up to $137/yr | saving up to $211/yr |
*Annual saving vs 2025–26, based on the AER reference price for a representative customer in each zone. Your actual saving varies with usage.
How electricity prices have moved (DMO history)
Standing-offer prices dipped in 2024–25, jumped in 2025–26 with NSW up nearly 10%, then ease again in 2026–27, except South Australia, which keeps creeping up.
Year-on-year change in the residential Default Market Offer, by region:
| Period | NSW | South East QLD | SA |
|---|---|---|---|
| DMO 6 (2024–25) | down 1% to 6%* | down 1% to 6%* | down 1% to 6%* |
| DMO 7 (2025–26) | up 8.3% to 9.7% | up 0.5% to 3.7% | up 2.3% to 3.2% |
| DMO 8 (2026–27) | down 3.4% to 5.0% | down 7.2% | up 1.4% |
*For DMO 6 the AER reported an overall range for most residential customers rather than a per-region headline. DMO 8 is also the first year under the reformed DMO methodology, so year-on-year comparisons are indicative. Source: AER DMO final determinations 2024–25, 2025–26 and 2026–27.
Which states does the DMO cover?
The DMO sets prices in three regions only; the rest of the country uses separate benchmarks.
| Region | Benchmark | Set by |
|---|---|---|
| NSW, South East QLD, SA | Default Market Offer (DMO) | AER |
| Victoria | Victorian Default Offer (VDO) | Essential Services Commission |
| WA, TAS, ACT, NT, regional QLD | State / territory arrangements | — |
Why is South Australia going up?
South Australia is the only DMO region where residential flat-rate prices rise on 1 July, up 1.4%, because its wholesale and network costs did not fall the way they did in NSW and Queensland. It is not all one-way though: SA time-of-use customers still see a small drop, and SA small businesses get cuts of up to 12.1%. Even in the one state where the headline goes up, there is a cheaper path for a lot of people.
What is driving the change?
Lower wholesale, environmental and retail costs pulled the 2026–27 benchmark down; network charges remain the biggest single piece of a bill.
The AER points to three drivers behind this year's cuts: lower wholesale electricity costs, reduced environmental scheme costs, and lower retail operating costs. Network charges, the cost of the poles, wires and substations, are the largest single component of a bill and barely moved, which is why your saving depends so much on which distribution zone you sit in.
| Cost component | Approx. share of a typical bill | Direction in DMO 8 |
|---|---|---|
| Network (poles and wires) | 40% to 50% | Largest component, varies by zone |
| Wholesale (generation) | 30% to 40% | Down — the main driver of the cuts |
| Retail costs and margin | Remainder | Down |
| Environmental schemes | 3% to 4% | Down |
Shares are approximate and vary by distribution zone. DMO 8 is also the first determination under the reformed framework, which introduced tariff caps for the first time.
Expert view
James Baker, founder of EnergyPlans, on the 2026–27 changes:
“South Australia is the odd one out. It's the only state where the safety-net price rises this year while everyone else gets relief.”
“After last year's near-10% jump in NSW, this is the market handing some of it back. But prices are still sitting above where they were two years ago. The 2025–26 spike hasn't fully unwound.”
“The default offer is a cap, not a deal. Most households on it are paying more than they need to. The July cut is real, but the bigger saving is switching off the default entirely.”
“Households on the standing offer are paying up to $350 a year more than the cheapest plan in their area. That's the gap the July cut doesn't close.”
EnergyPlans is an independent comparison platform and is not owned by an energy retailer. Quotes free to use with attribution.
What is the Solar Sharer Offer?
New for 2026–27, retailers now have to offer a Solar Sharer Offer that gives eligible households three hours of free daytime electricity, including homes without rooftop solar. It is the first time this has been built into the DMO.
How much you could save by switching
The DMO is a price cap, not a deal. The cheapest market offers usually sit well below it.
| Region | New DMO (the cap) | Cheapest plan | Annual saving vs cap | % saving |
|---|---|---|---|---|
| NSW (Ausgrid zone) | $1,800/yr | $1,500/yr | $300/yr | 17% |
| South East QLD (Energex zone) | $1,800/yr | $1,530/yr | $270/yr | 15% |
| SA (SA Power Networks) | $2,100/yr | $1,750/yr | $350/yr | 17% |
Saving is versus the cheapest plan available through our comparison tool for a representative household in each zone. Annual costs based on AER reference usage. Actual savings vary with usage and plan.
How to check if you can beat the new price
The new DMO is a cap, not a deal. The cheapest market offers usually sit well below it. Enter your postcode to see the plans available at your address and how they compare to the new benchmark.
Compare electricity plans
See plans available at your address and how they compare to the new DMO benchmark.
Explore electricity prices by state
Methodology and sources
All price changes come from the AER's Final Default Market Offer Determination 2026–27, published 26 May 2026 and effective 1 July 2026. Historical figures come from the AER's DMO final determinations for 2024–25 (DMO 6) and 2025–26 (DMO 7). Victorian figures, where mentioned, are set by the Essential Services Commission. Dollar figures are AER annual reference prices for a representative customer in each distribution zone and vary with actual usage.
EnergyPlans is an independent comparison platform. We are not owned by a retailer, and we use regulated AER and ESC benchmark data. We may earn a commission if you switch through us, which never changes the prices you see.
For media
The data on this page is free to republish with attribution to EnergyPlans.com.au and a link to this page.
- Charts: the DMO trend chart is embeddable with attribution, available on request.
- Methodology: see the Methodology and sources section above.
- Region or suburb breakdowns: available on request.
- Media contact: James Baker, Founder, EnergyPlans.
Frequently asked questions
Will my electricity bill go down on 1 July 2026?
Most standing-offer households in NSW and South East Queensland will pay less. South Australian standing-offer households face a small rise of 1.4%. If you are on a market plan, your price does not change automatically, so it is worth comparing.
Why are South Australian electricity prices going up when other states fall?
South Australia is the only DMO region where flat-rate prices rise, up 1.4%, because its wholesale and network costs did not fall like the other regions. SA time-of-use customers still see a small drop, and SA small businesses get cuts of up to 12.1%.
Which region gets the biggest electricity price cut?
South East Queensland, with residential flat-rate prices down 7.2% and time-of-use down by up to 10.7%.
Does the DMO apply in Victoria, WA or Tasmania?
No. The DMO covers only NSW, South East Queensland and South Australia. Victoria uses the Victorian Default Offer set by the ESC. WA, Tasmania, the ACT, the NT and regional Queensland are outside the DMO.
What is the Solar Sharer Offer?
A new offer for 2026–27 that gives eligible households three hours of free daytime electricity, including homes without rooftop solar.
How do I check if I can beat the new DMO price?
Enter your postcode in our comparison tool to see plans available at your address and how they compare to the new benchmark.
Last updated: June 2026.