Reforms Bring Fair Deal, Free Daytime Power

Today's release of the draft 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 prices could fall by between 10.1 per cent and 1.3 per cent, while small business standing offer prices are set to fall by between 21 per cent and 8.5 per cent.

It is no coincidence that energy price reductions are coming as Australia surpasses the milestone of 51 per cent renewable electricity in the National Electricity Market for the first time. That is a direct result of more of the cheapest form of new energy entering the grid, and it shows why the Albanese Government's plan to roll out more renewables and storage is so critical to putting downward pressure on bills.

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

This year's draft decision is the first under the Albanese Government's reformed DMO framework, which is designed to better protect consumers by setting a reference price for a reasonable market offer.

The Government's changes mean the DMO is being rebalanced so households 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. It comes as Australians are also taking up cheaper home batteries in record numbers, helping households make more use of cheap solar and reducing pressure on the system at peak times because the long-term way to bring bills down is more cheap, reliable renewable energy.

The AER will publish the final DMO in May following a period of consultation with industry and further market observations.

The reforms also pave the way for the new Solar Sharer Offer, which will be an option from 1 July 2026 for households in South East Queensland, New South Wales and South Australia.

It means households will have access to a new offer with three hours of free electricity during the day, when Australia has abundant low-cost solar power flowing through the grid.

Families who run appliances like dishwashers, washing machines, pool pumps or hot water systems during the free power period may be able to save money on their bills.

Australia now has more than 4.2 million rooftop solar systems installed, with more than 25 gigawatts of capacity, more than the entire remaining coal-fired power fleet.

But it also means the grid regularly has excess solar in the middle of the day, when the sun is shining and energy demand is lower.

Instead of wasting that cheap energy, the Albanese Government is acting to share its benefits more fairly, lower overall energy system costs and reduce pressure on the grid during the expensive evening peak.

The Solar Sharer Offer will provide up to 24kWh of free electricity over three hours in the middle of the day for eligible households in DMO states.

The AER will regulate the offer to make sure households also get a fair deal outside the free power period, and that any usage above the free allowance is subject to a reasonable cap.

The Regulator has today also published draft tariff arrangements for the new Solar Sharer Offer to come in from 1 July, with feedback sought from industry and consumers.

The Government will also work with non-DMO states on extending the Solar Sharer Offer nationally by 2027.

These reforms are about making the energy system fairer for consumers.

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.

Attributable to Minister for Climate Change and Energy, Chris Bowen:

"Australians deserve a fairer deal on energy and a system that works for them, not just for energy companies.

"Today's draft Default Market Offer shows why reform matters, making sure standing offer prices better reflect supply costs, as well as introducing free daytime power so households can use more of the cheap solar Australia is already generating.

"Solar Sharer is about sharing the benefits of Australia's solar success. If the grid has abundant cheap power in the middle of the day, more households should be able to benefit from it.

"For households that can shift some of their usage into the free power period, this can mean real savings on bills, whether that is running the dishwasher, doing the washing, or heating hot water during the day.

"These reforms are good for households, good for the grid and good for the long-term affordability and reliability of Australia's energy system."

The AER will now consult on the draft DMO before finalising its determination. The draft decision and associated materials can be found at:

https://www.aer.gov.au/industry/registers/resources/reviews/default-market-offer-2026-27/draft-determination