South Australian small businesses are set to get a big break on energy costs, with the Australian Energy Regulator signing off on a hefty drop in power prices under its final Default Market Offer for 2026-27.
The DMO price for the average small business customer on a time-of-use tariff will be $673 or 12.1% lower than under the previous determination, while small businesses on flat tariffs will see a decrease of $379 (-6.8%).
The bulk of residential customers on a default market offer will also see power prices going the right way, with residential customers on a time-of-use tariff to get an average $25 decrease (-1.1%) from the current DMO.
Residential customers on a flat rate tariff will see a small $33 increase (1.4%) from the current DMO.
AER data suggests the vast majority of residential electricity customers in South Australia are on time of use tariffs.
There are currently around 13,000 (15.2%) small business customers and 66,000 (7.9%) residential in South Australia on standing offer contracts impacted by the DMO.
The determination was based on decreasing wholesale costs outweighing increasing network costs.
Energy Minister Tom Koutsantonis is now calling on retailers to pass on lower wholesale prices to their customers.
As put by Tom Koutsantonis
It's heartening to see wholesale prices heading in the right direction, with the majority of residential customers and all small business customers seeing a decrease in their bills under the Australian Energy Regulator's final Default Market Offer determination for 2026-27.
It's important to emphasise to consumers that the DMO is not the cheapest option on the market – the majority of customers are already on better deals and they should always shop around for the best deal they can find.
We are seeing a genuine reduction in wholesale prices, and the Malinauskas Government is taking action to ensure generation capacity – including gas – is available to maintain this.
It is incumbent on retailers to pass on the cost savings of these lower wholesale prices – and the Government now expects them to do so.
