The Australian Energy Regulator (AER) has released the Default Market Offer (DMO) for 2025-26.
The DMO is designed to protect consumers from excessively high prices while allowing retailers to recover their costs. It is the maximum price electricity retailers can charge customers on standing offer contracts. It also acts as a reference price so customers can compare plans offered by other retailers.
The DMO applies to households and small businesses on standing offer plans in NSW, South Australia and south-east Queensland.
From 1 July 2025, prices will rise across the 3 areas. Residential consumers will see increases ranging from 0.5% to 9.7% depending on their usage and location. The price rises for small businesses will range from 0.8% to 8.5%, depending on the same factors.
The AER sets the DMO prices each year. It said the upcoming rises were due to cost increases in the different components that make up the DMO, including wholesale energy costs and network costs.
Generally, the DMO is not the cheapest offer in the market. Most retailers have better deals than the standing offer and customers can save money by shopping around.
Customers in NSW, ACT, South Australia, Tasmania, and Queensland can compare offers at Energy Made Easy.
Customers in Victoria can check offers at Victorian Energy Compare.
Both websites are free to use.
