Millions across Australia face higher electricity costs from July, with New South Wales customers seeing the steepest increases. The Australian Energy Regulator has finalised new default market offers, adjusting prices in response to surging wholesale and network costs.
Rising power bills are set to affect households and small businesses across New South Wales, South-East Queensland, South Australia, and Victoria, following regulatory approval of revised electricity pricing.
The adjustment, scheduled to take effect on 1 July, aligns with changes in supply costs and infrastructure investment, aimed at sustaining the reliability of the national grid.
The Default Market Offer (DMO), introduced in 2019 to act as a safeguard against excessive charges for customers not on competitive retail plans, has now been updated to reflect real-world cost pressures.
The increase, although varying by region, is particularly significant in NSW, where outages, transmission costs, and infrastructure investments are placing additional strain on the system.
NSW Customers to Bear the Brunt of the Price Increase
According to the Australian Energy Regulator (AER), residential electricity customers in New South Wales will see the largest rise in bills, ranging from 8.5% to 9.7% depending on their network area.
This translates to an additional £120 to £180 per year for the average household. Customers with controlled loads—such as off-peak electric heating or hot water systems—will experience increases of up to 9.7%.
Clare Savage, Chair of the AER, attributed these steeper hikes in NSW to a combination of factors, including “unexpected outages at coal-fired power stations” and “higher transmission network costs.”
Additionally, upgrades to bolster the grid’s resilience against cybersecurity threats and climate-related disasters, such as floods, have further contributed to the upward pressure on prices.
Meanwhile, small businesses in NSW will face rises between 7.9% and 8.5%, adding hundreds to annual operational costs.
These figures come amid growing public concern over affordability, especially for those on fixed or lower incomes. The Australian Council of Social Services (ACOSS) noted that many households are already making “enormous sacrifices” to meet utility expenses.
More Modest Rises in Other States, With Victoria Least Affected
In South-East Queensland, price increases for residential customers will range from 0.5% to 3.7%, while small businesses will see a 0.8% rise.
Customers with controlled load services in the region will see the smallest change, at 0.5%, according to the AER. South Australia will see moderate adjustments, with household bills rising between 2.3% and 3.2%, and small business customers facing a 3.5% hike.
Victoria, which operates under a separate regulatory system via the Essential Services Commission, will experience the lowest increase.
A flat 1% rise is forecast for households, with small businesses seeing an average of 3%. The Commission attributes this stability to longstanding smart meter infrastructure, lower environmental charges, and reduced retail operating margins.
Despite the broader rise in wholesale and network costs nationwide, the Victorian model has demonstrated how sustained investments in grid modernisation can moderate consumer impacts.
Consumers across all jurisdictions are being encouraged to explore competitive offers, with the energy minister, Chris Bowen, highlighting potential savings of up to 27% for those who switch from default plans.
