If you’ve opened your electricity bill lately and felt your blood pressure spike, you’re not alone.
Across Australia, power prices have been climbing, leaving many households and small businesses wondering if there’s any relief in sight.
But there’s good news on the horizon: the Albanese government is taking aim at excessive power bills and the sneaky price gouging that’s been hitting our hip pockets.
A new approach to power pricing
Energy Minister Chris Bowen is set to shake things up with a review of the Default Market Offer (DMO)—the benchmark price that helps set what electricity retailers can charge in New South Wales, South Australia, south-east Queensland, and Victoria.
‘The DMO was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies,’ the minister will say.
But, as Minister Bowen is expected to admit, ‘I don’t think it’s working that way and reform is needed.’
While it’s stopped some of the most outrageous price hikes, many Australians are still paying more than they should. In fact, a whopping 80 per cent of billpayers could be getting a better deal if the system worked as intended.
What’s going wrong?
The DMO is set by the Australian Energy Regulator (AER) in most states, and by the Essential Services Commission in Victoria.
But despite these safeguards, some regions are still facing hefty increases. From July, some NSW customers will see their bills jump by up to 9.7 per cent.
South-east Queenslanders and South Australians aren’t far behind, with increases of up to 3.7 per cent and 3.2 per cent respectively.
Victorians, however, are faring a little better, with an average rise of just 1 per cent—and some might even see a price drop.
So, what’s Victoria doing right? Bowen points to their model as a potential blueprint for the rest of the country, noting that their approach has kept bill increases much lower than elsewhere.
What’s changing?
Bowen’s review could mean big changes for how your power bill is calculated. One key target is the so-called ‘competition allowance’—the extra costs retailers tack on to cover the expense of winning and keeping customers.
The AER has already decided to scrap this allowance from the 2025-26 DMO, which should offer some cost-of-living relief.
But that’s not all. The government is looking at further tightening the rules on what retailers can claim back from customers, making it harder for them to pad your bill with unnecessary charges.
The goal? A better-regulated pricing mechanism that puts real downward pressure on electricity bills, rather than leaving you to hunt for a better deal on your own.
Harnessing the power of solar and batteries
It’s not just about stopping price gouging. The government is also keen to help Australians make the most of the solar revolution.
With rooftop solar panels now a common sight across the country, the next big thing is household batteries—letting you store your own solar power and use it when you need it most.
To help with the upfront cost, the government is rolling out a $2.3 billion plan to subsidise small household batteries.
From 1 July, if you’ve got solar panels (or are thinking of getting them), you could see the cost of a battery slashed by 30 per cent—that’s about $4,000 off the typical price.
Government analysis suggests this could save households up to $2,300 a year, which is nearly 90 per cent of a typical family’s electricity bill.
An industry advisory committee will be set up soon to help guide this rollout, as battery sales are now outpacing new solar installations.
It’s a sign that more Australians are ready to take control of their energy use—and their bills.
What does this mean for you?
If you’re feeling overwhelmed by rising power costs, these changes could offer real relief. But in the meantime, it’s still worth shopping around for a better deal.
Many Australians are still on default offers or legacy plans that aren’t the best value. Use comparison tools, check your current rate, and don’t be afraid to switch providers if you find a better offer.
And if you’re considering solar or a battery, now might be the perfect time to take the plunge. With new subsidies on the way, the upfront cost is coming down, and the long-term savings could be substantial.
Have your say
Have you noticed your power bills creeping up? Have you tried switching providers, or are you thinking about installing solar or a battery?
We’d love to hear your experiences and tips for saving on electricity. Share your thoughts in the comments below—your advice could help others in our community keep their bills in check!
Also read: Millions to pay more as AGL and Origin lock in power price increases
Received my new electricity pricing today, and what I pay has gone up by 2 Cents per Kwh, my feed in tariff was halved and my daily service charge in now almost $1.00 per day !!
I recently compared and changed providers, but now I am almost back to where I was before changing !!