Energy prices set to change across Australia in 2026-27

Australians across several states could soon see some welcome relief on their electricity bills. The new financial year brings with it new energy pricing changes due to begin from 1st July 2026.

New figures from energy regulators show many households and small businesses may pay less for energy bills next year. The 2026 energy prices changing could be a positive for many across Australia.

Not every customer will see major savings. There was some anticipation on energy price rise 2026 but luckily it seems to be swinging the other way. The changes could still make a difference during the ongoing cost of living pressure.

What is the Default Market Offer (DMO)?

The Default Market Offer is the maximum cost electricity retailers can charge standing offer customers. It acts as a safety net for households and small businesses that have not signed up to a market deal.

Power prices are never easy to balance and bill relief is something everyone welcomes. Energy costs haven't been easy to manage but clean energy like solar or wind makes all the difference.

The DMO is important because it is often used as a benchmark to compare electricity prices between providers. The Australian Energy Regulator sets the DMO for New South Wales, South Australia, and south-east Queensland. Victoria has its own system managed by the Essential Services Commission.

How much could bills change?

The latest figures show many customers could pay less for electricity in 2026-27. With the cost of living, many were expecting the energy price rise 2026-2027 to be a big one.

In New South Wales, households on flat rate standing offers may see prices fall by between 3.4 per cent and 5 per cent. Customers with smart meters on time-of-use pricing could see even bigger reductions, with some bills dropping by up to 7.7 per cent.

Queensland residents in the south-east are also expected to benefit. Flat rate customers could save around 7.2 per cent, while some households with smart meters may see reductions of more than 10 per cent.

South Australia has a mixed result. Some households on flat rate pricing may experience a small increase, while customers using time-of-use plans may still receive slight savings.

Victoria is also set to receive lower default electricity prices. Residential households on the Victorian Default Offer could save an average of around 5 per cent across the year.

Small businesses in several states are also expected to benefit from reduced default prices.

New solar changes are coming

For the first time, regulators are also introducing a default Solar Sharer Offer. This new system will require energy retailers to provide at least three hours of free electricity.

Households with smart meters will qualify for this free power. The goal is to help households better use renewable energy during times when solar generation is high.

Energy providers are increasingly changing the way electricity is priced and used throughout the day.

Why comparing energy plans matters

Even though default electricity prices are falling in many areas, customers may not be on the cheapest deal available.

Many Australians stay with the same provider for years without reviewing their plan. In some cases, this can mean paying significantly more than necessary.

Electricity providers often change prices, discounts, and incentives. So, a plan that was competitive two years ago may not be the best today.

This is where comparing energy plans can make a real difference.

Compare Energy helps Australians compare electricity providers and prices in one place. It makes it easier to see what plans are available. It also helps you check if a better deal exists.

Brand loyalty could be costing you more

A lot of Australians stay with the same electricity company simply because it feels easier than switching. While loyalty can sometimes have benefits in other industries, it does not always pay off when it comes to energy.

Many retailers save their best offers for new customers. Existing customers may stay on older, more costly plans without knowing it.

This means sticking with the same provider out of habit could actually be costing households hundreds of dollars each year. Review your electricity plan often to make sure you still get competitive rates for your home or business.

Smart meters are becoming more important

The latest pricing updates also highlight the growing importance of smart meters.

Households with smart meters may qualify for time-of-use pricing. Electricity costs can change based on the time of day you use energy.

In some cases, customers using electricity outside peak periods may benefit from lower rates.

Smart meters are also becoming increasingly important for households with solar systems, batteries, or electric vehicles.

As energy systems evolve, customers with smart technology may get more flexible pricing options in the future.

Need help comparing providers?

Energy prices can be confusing, especially when plans, discounts, and rates vary between providers.

If you are unsure whether you are on the best deal, Compare Energy can help make the process easier. Comparing providers may help you find a plan that better suits your household usage and budget.

To compare electricity prices and providers, call Compare Energy on 1300 790 106. Speak with the team about your options.

Even small savings on your power bill can add up over the course of a year.