Energy News
Electricity Prices Set to Rise in July: What the 2025-26 DMO Increase Means For You
Read on to see what changes will be made into effect and how this could affect your bills.
- What Answers You’ll Get On This Page
Important Points
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The Australian Energy Regulator (AER) has released its Default Market Offer (DMO) final determination for 2025-26.
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Households in New South Wales, south-east Queensland, and South Australia should prepare to see their power bills rise by as much as $228 a year, starting 1 July 2025.
While the DMO provides a safety net for consumers, the AER emphasises that there are often better deals on offer for consumers willing to compare and switch. Whether you’re a household or a small business, read on so you can understand what is going into effect and what you can do to make sure you’re on the best deal out there.
Why Are Prices Going Up?
Electricity bills are set to rise for many Australian households and small businesses from 1 July 2025, following the Australian Energy Regulator’s (AER) final determination on the Default Market Offer (DMO) for 2025–26.
The DMO has gone through significant cost increases compared to last year’s DMO 6 model, which has resulted in draft DMO 7 prices for residential customers increasing between 3.2% and 9.1%, depending on the area.
If you haven’t heard of the DMO before, it’s a government-set electricity price that applies to customers who haven’t switched to a market offer. Think of it as a price cap, it essentially limits what electricity retailers should charge customers on standing (default) offers in New South Wales, South East Queensland, and South Australia. It also acts as a reference price for all other market offers in each region.
According to AER Chair Ms. Clair Savage, the DMO is “intended as a safety net for those who don’t or can’t shop around, but there are better offers available.”
What Factors Are Associated With the Increase?
The AER says the increases reflect growing cost pressures throughout the energy supply chain, particularly in wholesale and network sectors.
Rising wholesale electricity prices and network costs, the two largest components of DMO pricing, are two of the biggest drivers behind the draft increases, alongside inflation and increased interest rates. Retailers are paying more for electricity on the wholesale market due to increased volatility, while the cost of maintaining and upgrading the network infrastructure, like poles and wires, has also risen.
“Cost-of-living pressures are front of mind for many households and small businesses,” said AER Chair Clare Savage. “We’ve seen price pressures across nearly every part of the Default Market Offer, and we’ve carefully reviewed each component to ensure the final prices reasonably reflect what it costs a retailer to supply electricity.”
Even though state and federal governments have offered energy rebates, like the Energy Bill Relief Fund, which was recently extended and will begin on the same date as the DMO price changes will take effect (1 July 2025), it’s still not enough.
1What Changes Could Be Coming?
If you’re a residential customer in New South Wales, South East Queensland, or South Australia, your energy costs may change starting 1 July 2025. The table below outlines the price changes from the previous Default Market Offer (DMO 2024-25, also known as DMO 6) to the current draft for 2025-26 (DMO 7).
Distributor | DMO 2024-25 | DMO 2025-26 |
|---|---|---|
|
Ausgrid (NSW) |
$1,810 |
$1,965 |
|
Endeavour (NSW) |
$2,223 |
$2,411 |
|
Essential (NSW) |
$2,513 |
$2,741 |
|
Energex (SE QLD) |
$2,066 |
$2,143 |
|
SA Power Networks (SA) |
$2,230 |
$2,301 |
Source: AER – Final determination – Default market offer prices 2025–26 – 26 May 2025, Australian Energy Regulator (AER), https://www.aer.gov.au/industry/registers/resources/reviews/default-market-offer-prices-2025-26
2How Do I Know if I’m Overpaying?
The Australian Competition and Consumer Commission (ACCC), Australia’s consumer watchdog, reports that over 80% of households* could save on electricity costs by shopping around or contacting their current provider for better deals. If you think you’re paying too much, chances are you’re not alone, and you could be one of the many who stand to save.
*Australian Competition & Consumer Commission (ACCC), National Electricity Market December 2024 Report.
You’ve Been On the Same Plan For Over a Year
Electricity providers often introduce new, more competitive offers, especially for new customers. If you’ve been on the same plan for more than 12 months, there’s a good chance that you’re no longer on the best deal. Many plans include sign-up discounts that expire after the first year, leaving you on a higher rate unless you switch.
There is a Better Plan Than What You’re Currently On
One of the easiest ways to tell if you’re paying too much for electricity is right on your bill. Your retailer is required to let you know at least once every 100 days, on the front page of your bill, if they have a better offer available based on your usage. If you see this message, it’s a clear sign you could be saving money by switching to another plan.
Your Usage Has Changed
Electricity plans can vary based on usage patterns. For instance, time-of-use plans charge different rates depending on the time of day. If your energy consumption doesn’t match with your plan’s tariff structure, you could be paying more than necessary. Review your usage and ensure your plan makes sense.
3What Can I Do If I Am Overpaying?
Keep in mind, the Default Market Offer (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. That’s where we come in.
Instead of spending hours calculating the numbers on your own, call Electricity Monster instead. One of our energy experts will do a bill-to-bill comparison based on your actual household usage so you get real figures, real numbers, and real value-driven advice. Plus, we’ll compare plans on your behalf and work to get you the best deal we have available.
Expert Tip
If you haven’t switched plans in a while, it’s incredibly easy and could take as little as 15 minutes.
Click below to book a free energy review with one of our experts. Just upload a recent bill and we’ll show you the best offers we have available. If we can’t help, we’ll let you know before your appointment, no wasted time.
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.
