The Australian Energy Regulator (AER) has released its 2026-27 Default Market Offer (DMO) determination and says electricity prices will fall for most households and all small businesses on the DMO from 1 July 2026.
The DMO applies to standing offers for households and small businesses in New South Wales, South Australia and South East Queensland. It sets a cap on the prices retailers can charge customers on these offers and provides a reference price to help customers compare market offers.
The AER's determination shows households on standing offers will see annual prices for time-of-use offers fall by between 1.1 per cent and 10.7 per cent. Flat-rate offers will go down by 3.4 per cent to 7.2 percent, except in South Australia where there will be a modest 1.4 per cent increase.
For small businesses on standing offers, annual prices for time-of-use offers will decrease by between 9.4 per cent and 20.9 per cent. Flat-rate offers will drop by between 6.8 per cent and 11.3 per cent.
For the first time the DMO determination also includes the Solar Sharer Offer. It is an opt-in plan that provides eligible households with 3 hours of free power in the middle of every day.
The Solar Sharer Offer will be available from 1 July 2026 to:
- households with and without rooftop solar
- houses, units and other multi-resident dwellings, excluding those in embedded networks
- households with a smart meter (mandatory).
To benefit from the offer, households need to shift some of their electricity use into the set free-power period. The more they shift, the more they can potentially save on bills. Some conditions apply.
The AER says the price of the Solar Sharer Offer will be regulated using the same annual price as the time-of-use DMO in each area. It says having a regulated price means consumers can feel confident they are not being overcharged outside the free-power period.
The 2026-27 determination is the first under Australian Government's reformed DMO framework which aims to help consumers get a fair energy deal and better protect customers.
The lower energy prices also come after Australia's main grids recorded more than 50 per cent renewable generation for the first time, at the end of last year. It indicates the energy transition is pushing down wholesale prices with the lower costs starting to flow through to bills.
