Energy News
The 2025 July Price Rise Is Coming: Here’s What You Need To Know
Will you be affected by the upcoming price rise? Find out below.
- What Answers You’ll Get On This Page
Important Points
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Electricity prices are set to rise on 1 July 2025 for Australians in New South Wales, South Australia, South-East Queensland, and Victoria.
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The increases will vary depending on where you live, with changes ranging from as little as 0.5% up to 9.7% across different network areas¹.
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According to the ACCC’s December 2024 report, over 80% of households connected to the National Electricity Market (NEM) could be overpaying². With the upcoming price rise set to start soon, that figure could climb even higher, especially for customers who haven’t switched plans in over a year.
It’s that time of year again. For many Australians already feeling the pressure of rising living costs, this price rise means yet another hit to the household budget. Here’s what’s changing, how it could affect you, and what you can do to avoid paying more than you need to.
Timeline Snapshot
How Much Will Prices Increase?
The Australian Energy Regulator (AER) has finalised the 2025-26 Default Market Offer (DMO), and the final report shows a residential price increase ranging from 0.5% to 9.7%, depending on your state and plan type. NSW and ACT are set to experience the highest jump, with some rising nearly 10%, while other states will see smaller increases between 2.3% and 3.7%¹.
Here’s a clear breakdown of how electricity prices have changed across DMO regions (for households with a controlled load) compared to last year, sorted by state and distributor, so you can easily see what’s happening in your area.
Distributor | DMO 2024-25 | DMO 2025-26 |
|---|---|---|
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Ausgrid (NSW) |
$1,810 |
$1,965 |
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Endeavour (NSW) |
$2,223 |
$2,411 |
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Essential (NSW) |
$2,513 |
$2,741 |
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Energex (SE QLD) |
$2,066 |
$2,143 |
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SA Power Networks (SA) |
$2,230 |
$2,301 |
To put this into perspective:
Customers on the Endeavour Energy network may see bills go up by roughly $188 a year. That’s over $15 a month, which is enough to cover part of a mobile phone bill or the cost of medications.
Households under SA Power Networks could be hit with an increase of $71 a year, which may not sound like much, but in today’s volatile economic climate, every dollar counts, especially when food, fuel, and rent are all trending upwards.
Remember, the actual increase you’ll see on your bill depends on your retailer, your specific plan, and how much electricity you use (or your household usage profile).
Customers in regional Queensland are covered by separate pricing set by the Queensland Competition Authority, and Victoria operates under the Victorian Default Offer (VDO), which is regulated by the Essential Services Commission. Victorians could see increases of up to $90 based on the area.
2How Can You Get Ahead of the July Price Rise?
Small changes now could help soften the blow when your next bill arrives. Here’s what you can do to stay proactive ahead of the price increases:
1. Look out for notification letters from your energy provider.
Energy retailers are required to provide at least five business days’ notice before changing prices. If you receive a letter or email, don’t ignore it, treat it as your cue to compare.
2. Review your plan if it’s been 12 months or more.
The Australian Energy Regulator recommends comparing your plan regularly, especially after a year, since prices and market offers change all the time. Chances are, a newer deal could save you money, without changing how much energy you use.
3. Compare and switch to a better deal before July 1.
Use our tool below to compare the best market offers. If a better plan is available, whether it’s cheaper overall or better matches your usage patterns, switching now can help you save more in the long run.
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Why Are Prices Going Up?
According to the AER, these price rises are necessary to reflect ongoing increases in wholesale energy costs, network upgrades, and operational expenses across the industry.
While price hikes are never welcome, the AER says these increases are being driven by a few unavoidable factors:
Wholesale market pressures: Supply chain constraints, coal-fired generator closures, and higher demand have pushed up the price retailers must pay to source electricity.
Network costs: The cost of maintaining and upgrading power infrastructure, like poles, wires, and smart meters, continues to rise.
Operating costs: Retailers face higher costs to deliver services, from billing to customer support.
4What is the DMO? And Why Should I Care?
The Default Market Offer (DMO) is a regulated price set each year by the Australian Energy Regulator (AER). It’s essentially a safety net, a price cap that limits how much electricity retailers can charge residential and small business customers who haven’t actively chosen a market deal.
But the DMO isn’t just a price ceiling. It also plays a second, crucial role: it sets a benchmark, also known as the reference price, which retailers use to compare their market offers. That means when you see a plan advertised as “15% off the reference price,” that discount is calculated off the DMO.
So, why does the DMO matter?
Because it affects what you pay, directly or indirectly.
According to the AER, the DMO is designed to make sure customers aren’t paying too much just because they haven’t switched plans.
But here’s the catch: default offers are typically not the cheapest option. They are meant to be fair, not competitive. That’s why even if you’re not affected by the price change directly, it can still impact how your options are presented when comparing plans.
Additionally, the DMO is just a reference point. It’s a benchmark, not a personalised quote. If you really want to know whether you’re paying too much, the most accurate way is through a bill-to-bill comparison. It takes into account your actual usage, charges, and tariff type, not just averages.
You can do the calculations yourself or let an expert like Electricity Monster handle the entire process from start to finish for you. We’ll crunch the numbers, do a bill-to-bill comparison and help you get the best deal we have available. Book an appointment below and let us help make your energy bills more manageable.
5Will Everyone Feel the Impact?
Not necessarily. The Default Market Offer (DMO) increase applies specifically to customers on standing offer plans in New South Wales, South Australia, and South-East Queensland. These are the default plans you’re put on if you haven’t actively chosen a market offer.
Residents in Victoria have a slightly different situation: the Essential Services Commission (ESC) handles any changes to the Victorian Default Offer (VDO). However, Victorians aren’t exempt from price increases as the ESC has determined that prices will also increase on 1 July⁴.
Generally speaking, you’ll fall into one of these two categories:
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If you’re on a standing offer, you should expect to see your rates rise starting 1 July, with increases of up to 9.7% depending on where you live.
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If you’re on a market offer, your plan could still be outdated and more expensive than it needs to be if you haven’t compared or switched in over 12 months.
Regardless, no matter what kind of plan you’re on, you should compare the market. With cost-of-living pressures already adding to the stress of the upcoming price rise, sticking with an outdated plan or standing offer could mean hundreds of dollars lost over the next year, and for nothing. The only way to know if you’re getting a fair deal is to check.
6What Happens in August?
Your first electricity bill after 1 July might not show the full impact of the price increase right away. That’s because many billing periods span several weeks, so your July bill will likely include usage from both late June (at the old rate) and early July (at the new rate).
The real changes will become much clearer in your August and September bills, which will reflect a full billing cycle under the updated rates.
Final Thoughts
With electricity prices rising from July 1 under the new Default Market Offer (DMO), taking action now could make a big difference to your next energy bill. Whether you’re on a standing offer or a market deal, there’s one clear takeaway: doing nothing could cost you more than you think.
Now’s the time to check your plan and make sure you’re not paying more than you have to.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
Sources:
¹Australian Energy Regulator (AER), Final Determination 2025–26 Safety Net Prices for NSW, SA and SE QLD. https://www.aer.gov.au
²Australian Competition & Consumer Commission (ACCC), National Electricity Market December 2024 Report.
https://www.accc.gov.au/system/files/accc-national-electricity-market-december-2024-report.pdf
³Australian Energy Regulator (AER), Annual Retail Market Report 2023–24 – Charts and Data.
https://www.aer.gov.au/documents/annual-retail-market-report-2023-24-charts-and-data
⁴Essential Services Commission (ESC), Victorian Default Offer Price Review 2025–26. https://www.esc.vic.gov.au
