Energy Tips
Why Winter Is the Worst Time to Be on the Wrong Energy Plan
Winter drives up usage, and the wrong plan can make your bills increase significantly.
- What Answers You’ll Get On This Page
Important Points
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Winter energy usage spikes, mainly due to heating, lighting, and longer time spent indoors.
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Higher usage + higher rates = bigger bills, especially if you haven’t reviewed your plan recently.
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Switching plans is simple, and in some cases quick to do. Checking your rates and comparing the market is one of the easiest ways to avoid winter bill shock this year.
This winter, many Australians are opening their energy bills and wondering, “How did it get this high?” You’re not wasting electricity, your habits haven’t changed much, and yet your electricity costs have jumped. The truth is, winter is a perfect storm for bill shock, not just because you’re using more energy, but also because of the recent price increases. Let’s explain.
Why Winter Hits Harder Than Other Seasons
There’s nothing unusual about using more electricity in winter; it happens every year. Heating, lighting, and hot water use all go up as we spend more time indoors, run heaters for hours on end, and rely on electric appliances more heavily to stay warm.
In fact, heating alone can account for over 40% of your winter energy bill¹.
But the real issue isn’t just higher usage, it’s when that usage is compounded by an energy plan that’s outdated. What’s more is that small details like a higher supply charge hits harder when your usage spikes.
Budgeting is already tough and many families can’t afford to be shocked by a higher than expected bill.
Some energy plans charge more during peak times (e.g., time-of-use plans), which is exactly when heaters, ovens, and hot water systems are running. Or, you could see charges that are based on the maximum energy usage during a specific time block (e.g., demand tariffs).
Many people assume their heater is the issue, and while it may be in some cases, it’s often their energy rate that’s working against them.
1Why July 1 Made It Worse
Each year around July, the Default Market Offer (DMO) and Victorian Default Offer (VDO) are updated to account for changes in wholesale electricity costs, network charges, and other factors impacting retail electricity prices.
This year, the updates weren’t small. Households across NSW, Victoria, South Australia, and the ACT saw rate increases of up to 9.7% or more, depending on their location.
The timing couldn’t be worse. Just as households naturally ramp up their usage, those higher rates kicked in.
That means you’re not just using more electricity, you’re also paying more for it.
Avoiding the heater because of high costs? Maybe it’s not you, it’s your energy plan.
For anyone still on the same plan for years, this combination of higher usage and higher rates can lead to serious bill shock.
Here is the full breakdown of the changes that came into effect on 1 July.
If you’re a residential customer in New South Wales, South East Queensland, or South Australia, your energy cost 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
If you haven’t noticed yet, it could be because your billing cycle hasn’t rolled over yet.
If your billing cycle includes days before and after July 1, you’re unlikely to see the new, higher rates until your next full bill. Standing offers and default market plans were updated on July 1, so bills issued after that date, typically in July or August, will reflect the increase.
2What You Can Do Right Now to Avoid Overpaying
The best thing you can do is review your energy bill to see what you’re being charged and compare it to what else is out there. Here’s how:
Check Your Current Energy Rate/Plan
Generally speaking, shopping around could save you a good amount of money, especially if you’ve been on the same plan for a while. According to the ACCC, over 80% of households connected to the National Electricity Market (NEM) could be overpaying for their energy².
That means if you haven’t checked your energy plan in a while, there’s a good chance you’re paying more than you need to, possibly hundreds of dollars a year, just for sticking with the same provider. You could also be missing out on deals that help ease the cost of living. And, with the July price increase already in effect, there’s no better time than now to switch to a better plan.
Implement Energy-Efficient Habits
Switching plans is a big step, but managing usage can help too:
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Use energy-efficient heaters
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Set heating to 18-20°C where possible (Every degree lower can save 5 to 10% in heating costs¹. )
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Run major appliances at night (or off-peak hours) if you’re on a time-of-use plan with off-peak rates
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Seal draughts and close off unused rooms to retain heat
These won’t necessarily fix a bad rate, but once you’re on a good plan, they could help stretch your budget even further.
For More Winter Saving Tips
Is It Difficult to Switch Plans?
No. Switching your energy provider and/or plan is simple and relatively quick.
However, it’s important to remember that comparison shopping isn’t a one-and-done task. Ideally, you’ll always want to be on the cheapest electricity plan that offers the most value for your money, but you’ll still need do a full side-by-side comparison of every plan that fits your budget, usage profile, and household size – as well as initiate the switch itself.
So, what can you do? You can:
1. Spend the time shopping on your own, OR
2. Let Electricity Monster take care of the entire process for you.
At Electricity Monster, we get that life’s busy and you don’t have time to waste. That’s why we’ve made it quick and fast to find the cheapest energy plans. We’ll take care of everything, comparing energy companies in your area, analysing your energy usage, and recommending a plan that fits your budget and lifestyle. And the best part? We’re 100% free to use. With just one call, we could switch you over to a better deal, saving you time and money. So, let us handle the process while you enjoy the benefits of a new plan. Click the button below to book an appointment.
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:
¹Heating and Cooling, Australian Government, https://www.energy.gov.au/households/heating-and-cooling
²Australian Competition and Consumer Commission. (2024, December 30). Inquiry into the National Electricity Market: December 2024 Report. https://www.accc.gov.au/system/files/accc-national-electricity-market-december-2024-report.pdf
