Brace yourselves, folks—another round of electricity bill hikes is on the horizon, and this time, the shock could be as much as $228 for some Australian households.
The Australian Energy Regulator (AER) has just handed down its final Default Market Offer (DMO) for the 2025-26 financial year, and the news isn’t exactly what we’d call electrifying—in the good sense, anyway.
Who’s affected and by how much?
You’ll want to pay close attention if you’re living in New South Wales, South Australia, or southeast Queensland.
The AER’s new DMO sets the maximum price energy retailers can charge customers on standing offer plans—those are the default plans you’re put on if you haven’t shopped around for a better deal.
Here’s the breakdown:
NSW: Households could see their bills jump by a hefty 8.3 per cent to 9.7 per cent. For some, that’s an extra $228 a year, with customers of Essential Energy hit hardest—average annual bills rising from $2513 to $2741.
South Australia: Price hikes range from 2.3 per cent to 3.2 per cent.
South East Queensland: Increases are a little gentler, between 0.5 per cent and 3.7 per cent.
These increases are slightly higher than what was forecast in the AER’s draft determination back in April, especially for NSW residents.
Why are prices going up (again)?
AER chair Clare Savage didn’t sugarcoat it: ‘We know this is not welcome news for consumers in the current cost-of-living environment.’
The main culprits? Rising costs across the board—wholesale energy prices, network charges, and retail costs have all climbed, with some retail costs up by a staggering 35 per cent compared to last year.
It’s a perfect storm: global energy market volatility, increased demand, and the ongoing costs of maintaining and upgrading our ageing energy infrastructure. All of this gets passed down the line to us, the humble bill-payers.
What can you do about it?
Here’s the silver lining: you’re not powerless (pun intended). Energy Minister Chris Bowen and consumer advocates are urging everyone to shop around.
According to the government, 80 per cent of households aren’t on the cheapest plan available. That’s a lot of money left on the table.
Platforms like the government’s Energy Made Easy comparison tool and energy.gov.au can help you find a better deal. Some market offers are up to 27 per cent cheaper than the DMO, so it’s well worth a look.
Sally Tindal from Canstar Blue says switching from an average plan to one of the lowest-priced options could save you over $400 a year—enough to more than offset the latest price hike for many households.
And don’t worry about being locked in; most plans these days don’t have exit fees or long-term contracts, so you can keep shopping around as prices change.
Tips for beating the bill shock
- Compare, Compare, Compare: Don’t just accept the price hike. Use comparison sites to see if you can get a better deal.
- Act Before July 1: The new prices kick in from July 1, so the sooner you switch, the better.
- Check Regularly: Energy prices are always changing. Set a reminder to check your plan every few months.
- Consider Usage Habits: Some plans suit low-usage households, others are better for high-consumption homes. Make sure your plan matches your lifestyle.
- Ask About Concessions: If you’re a pensioner or hold a concession card, you may be eligible for extra discounts or rebates.
The bigger picture: Why does this keep happening?
Australia’s energy market is in a state of transition. As we move away from coal and towards renewables, there are growing pains—investment in new infrastructure, the cost of integrating solar and wind, and the need for reliable backup when the sun isn’t shining or the wind isn’t blowing.
While the long-term outlook is for cheaper, cleaner energy, the short-term reality is a bit bumpier.
Have your say
Are you feeling the pinch from rising energy bills? Have you managed to find a better deal, or are you struggling to keep up? Share your tips, frustrations, or questions in the comments below. Let’s help each other navigate the ever-changing world of energy prices—because when it comes to power bills, knowledge really is power.
Also read: Are you losing $171 a year to this hidden energy bill trick? Here’s how to stop it
Why do we get less rebate from the solar every year but the prices go up? You try to do what’s best and outlay thousands you don’t really have to spare but plan for the future. Soon it will be useless to have solar, we will be paying them.
I totally agree. The rates for buyback of solar units in WA are between 2c off-peak up to 10c peak. We are now charged 28c per unit. We spent thousands upgrading our solar to 20 panels before I retired, 8 years ago to help with power bills in retirement, but our bill is as much now as it was before I retired. We could not afford to put batteries in to help as they initially cost over $12,000. We put in solar as per the government recommendations, but that has got us nowhere. Synergy is supposed to be owned by the Western Australian public, so why does it cost us so much.
I agree with Frank, I spent thousands putting in solar only to find my bill is now highr than before. I make more than half of the electricity I use but Synergy will only buy back my extra for 7 Cents and I have to pay them 28 cents. We are both producing the same product so why the difference. They are ripping us off by buying ours at 7 Cents then selling it on for 28 cents and making themselves a cool 21 cents profit per unit. It is getting very hard to keep up as a pensioner especially as we have rising private health insurance as well.