Massive increase in power bills on the way

Electricity bills in parts of Australia are set to rise by as much as 25 per cent in the coming months – and the regulator says it could have been much worse.

The Australian Energy Regulator (AER) has now released its final determination for the 2023–24 Default Market Offer (DMO).

The DMO sets the baseline for what energy retailers in New South Wales, South-East Queensland, South Australia, Tasmania and the ACT can charge. It provides a default offer for all retailers in areas where there is no other relevant retail price regulation.

From 1 July 2023, residential customers on standard retail plans will see price increases of 20.8 per cent to 23.9 per cent without controlled load, depending on their region, and between 19.6 per cent to 24.9 per cent with controlled load, depending on their region.

These figures vary slightly from the draft revealed in March, higher in some regions and lower in others, with wholesale energy costs continuing to be the predominant driver of increased retail electricity prices.

Clare Savage, chair of the AER, says in making its carefully balanced decision, the regulator considered not only the cost-of-living pressures faced by households, but also the need for retailers to recover reasonable costs.

“We know households and small businesses continue to face cost-of-living pressures on many fronts, and that’s why it’s important the DMO provides a safety net for those who might not have shopped around for a better power deal,” she says.

“In setting the DMO price this year, we have sought to protect consumers from unjustifiably high prices and at the same time allow retailers to offer consumers better deals than their standard plans,” she says.

“No-one wants to see rising prices, and we recognise this is a difficult time.”

But she says the price rises would be significantly higher if it was not for the federal government intervening in the coal and gas markets.

“When we were looking at the price, what the prices could have been last September, October, we were estimating between about 35 and 50 per cent,” she told the ABC.

“What we’re seeing [instead] is the sort of contracts that retailers buy for the coming financial year have fallen quite a bit since intervention in the coal and gas markets in October last year.”

What about the other states and territories?

Energy retailers in Victoria, Western Australia, the Northern Territory and the rest of Queensland are not subject the DMO or the AER’s authority.

Victoria has its own regulator, the Victorian Energy Regulator (VER), which sets its own default offer. But if Victorians were hoping for an easier run with their bills, they’re out of luck – the VER just announced a 25 per cent increase to the rate.

WA doesn’t have a specific regulator for energy prices, rather prices are set by contributions from three regulators – Energy Policy WA, the Economic Regulation Authority and the Energy Ombudsman.

Similarly, in the NT, electricity prices are governed by the Utilities Commission and the Ombudsman NT.

Are you worried about rising power prices? Have you tried looking for a better deal? Let us know in the comments section below.

Also read: How the electricity bill relief payment works in your state

Brad Lockyer
Brad Lockyer
Brad has deep knowledge of retirement income, including Age Pension and other government entitlements, as well as health, money and lifestyle issues facing older Australians. Keen interests in current affairs, politics, sport and entertainment. Digital media professional with more than 10 years experience in the industry.


  1. How about paying a decent feedback tariff for solar panels! Spent heaps getting these done only to have the government ripping people off. Giving pittence of feedback and then people having to pay triple the amount to use energy when home from work.
    If I could afford to go off grid and stop paying the government I would. 🙁

  2. ISNT IT amazing the last 2 prime ministers said they will lowerelectricity prices and have lied
    ISNT ITamazing that it gives the govt a %25 increase in GST revenue by increasing the electricity
    I wonder what is going up next to lower the deficit to make the govt look better at everyones expenceCan anyone see centrelink paymrents going up at the same rate
    %10 increase in welfare payments to all still will not catch up to govts lies and greed
    THE govts give you $500 0ver 12 months which they get back in GST l n less tha 12months
    HOW gratefull are we that the govt as all GOVTS lie about averything
    IF they raise power prices which they have %25 and then somehow make deals with power companies to lower prices which they promised then it still means they have lied about any cost cuts to energy companies as even if they got a %25 cut it is still not given a $235 cut as promised THAT MEANS LIES AND GREED IS WHAT THESE GOVT ARE MADE UP WITH

  3. Hands up all those who lauded the Net Zero climate policy? Well welcome to the results! You’ve been deceived by the government and media into believing the climate change claptrap. You feel virtuous and impoverished! If you won’t vote for a party that calls out the lie then you have no-one to blame but yourself.

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