Australian households are bracing for electricity price hikes of nearly 10 per cent in the coming months, prompting calls for consumers to seek better deals. The Australian Energy Regulator (AER) has issued its “default market offer” (DMO), a legislated cap on electricity prices aimed at providing a safety net for households and small businesses. While companies cannot charge more than the DMO, consumers are encouraged to explore alternatives.
From July 1, 2025, residential customers in New South Wales will face the steepest increases, with standing offer plans seeing rises between 8.3 per cent and 9.7 per cent. Households in South-east Queensland will encounter increases ranging from 0.5 per cent to 3.7 per cent, while South Australian customers will see hikes of 2.3 per cent to 3.2 per cent. Small businesses on standing offer plans will experience increases of 0.8 per cent to 8.5 per cent, depending on their location. These three states together account for approximately 17 million people in Australia’s total population of 27 million.
AER chair Clare Savage attributed the price rises to escalating transmission and wholesale electricity costs. She acknowledged that these changes bring unwelcome news to consumers already facing cost-of-living pressures. She pointed out that nearly all components of the DMO have increased, with wholesale and network costs rising between 1 per cent and 11 per cent across most regions, and retail costs surging between 8 per cent and 35 per cent compared to last year.
To mitigate the impact, Savage underscored the importance of searching for better offers below the DMO, emphasising that energy retailers are required to assist customers as per national energy regulations. She urged consumers not to remain on outdated or unfavourable plans, recommending that they contact their retailer or shop around for more competitive offers.
Retailers are obliged to inform customers on their bills at least every 100 days if a better deal is available, making it essential for consumers to stay informed and proactive in managing their electricity plans.