Record Renewables Drive Down Bills

Today's release of the final Default Market Offer (DMO) shows price reductions for households across every regulated region, and even bigger reductions for small businesses, as our plan for more cheaper cleaner energy and a better deal for households helps shield households from global energy pain.

Household standing offer time of use prices will fall by between 1.1 per cent and 10.7 per cent across South Australia, NSW and south-east Queensland. Flat rate offers are down everywhere between 3.4 per cent and 7.2 percent, except in South Australia where there is an increase of 1.4 per cent.

Small business standing offer time of use prices are set to fall by between 12.1 per cent and 20.9 per cent, and flat rate offers to decrease between 6.8 per cent and 11.3 per cent across every regulated region.

The independent Australian Energy Regulator sets the DMO as a benchmark for residential and small business electricity bills in New South Wales, south-east Queensland and South Australia.

It is no coincidence that energy price reductions have happened as Australia's main energy grids clocked over 50 per cent renewable generation for the first time at the end of last year, pushing wholesale energy prices down which is beginning to flow through to bills.

The Albanese Government's roll out of more renewables and storage is reducing reliance on unreliable coal and putting downward pressure on bills.

The 2026-27 determination is the first under the Albanese Government's reformed DMO framework designed to better protect customers and deliver a fairer deal for consumers.

The Government's changes mean the DMO is being rebalanced so households and small businesses on standing offers pay a price that better reflects the actual costs of supplying electricity, making sure people on default plans are not paying for unnecessary retailer overheads. The DMO also serves as a benchmark price for retail market offers to compare against.

The Government has implemented a range of consumer rule changes which will further help protect consumers. From 1 July 2026, new rules will:

• Make sure plan benefits last the whole contract

• Stop sneaky price hikes during fixed contracts

• Ban unfair fees and dodgy discounts

• Limit price increases to once per year

These changes will clamp down on retailers who do the wrong thing, by luring customers in with cheap deals, only to move them onto higher cost plans or impose hidden fees and charges. Households and small businesses alike will be better off under these changes.

They are part of the Albanese Government's broader plan to deliver cheaper, cleaner, more reliable energy by getting more renewables and storage into the grid, backed by stronger consumer protections, insulating Australians from global energy market volatility.

The Coalition left Australians with an energy policy mess and opposed cost of living relief when people needed help.

The Albanese Government is delivering practical reform that helps households now and builds a better energy system for the future.

Quotes attributable to Minister for Climate Change and Energy, Chris Bowen:

"Our plan has two parts: More cheaper, cleaner energy and a better deal for households - and that's what we're delivering with the latest regulator's benchmark for energy bills showing declines across households and businesses.

"We've got the best sun and wind in the world, and we're using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills.

"The Coalition's plan is to stop renewables and household batteries, sweat coal, and leave Australians to pick up the bill of global shocks.

"We know energy bills are still too high - because when coal breaks down, your bill goes up - but this news shows steady progress."

Background

A flat rate offer is when customers are charged the same price for electricity at all times, while time of use is when the price of electricity changes depending on what time you use electricity.

Figure 1. DMO final determination, residential flat rate

Figure 2. DMO final determination, residential time of use

Figure 3. DMO final determination, small business flat rate

Figure 4. DMO final determination, small business time of use