Electricity prices have went up from 1 July 2025. People on default electricity plans in New South Wales, Southeast Queensland and South Australia will see increases of $71 to $228 per year depending on the network area. These changes follow the Australian Energy Regulator (AER) updating the Default Market Offer (DMO) for the new financial year.
How the Increases Vary by State
- New South Wales, SA, SE Queensland: For those on default, standing offers without controlled load, the price increase could be 9.1%. That’s a big hit on household budgets.
- Victoria: The Essential Services Commission (ESC) has set a smaller average increase of 1%, or around $20 extra per year. Each of Victoria’s five distribution zones will see a slight change, some even going down a few dollars.
What’s Driving the Increases
A few important factors are behind higher electricity charges:
- Rising wholesale costs: Retailers are paying more when they purchase electricity, especially at peak times.
- Network expenses: The cost of maintaining and upgrading the electricity grid is growing.
- Operational costs: Running call centres, payment systems, and managing default customers all add to the total cost.
Due to these combined pressures, both wholesale and retail charges are increasing.
DMO and VDO Explained
The Default Market Offer (DMO) in NSW, SE QLD, and SA, and the Victorian Default Offer (VDO), act as price caps. They limit what retailers can charge customers who remain on default standing offers. These plans include both supply and usage charges, and serve as benchmarks for comparing other plans. Most customers (about 92%) are on market offers, yet many of these deals are priced close to the default benchmarks, meaning the increase affects them too.
Official DMO and VDO Prices for 2025–26
These new rates are for households without controlled loads and are based on average annual electricity use:
New South Wales
- Ausgrid: $1,965 (+8.9%, +$155)
- Endeavour Energy: $2,411 (+8.5%, +$188)
- Essential Energy: $2,741 (+9.1%, +$228)
SA Power Networks
$2,301 (+3.2%, +$71)SE QLD (Energex)
$2,143 (+3.7%, +$77)
Victoria (VDO updates)
- United Energy: $1,579 (+0.2%, +$4)
- Powercor: $1,703 (+0.2%, +$4)
- Jemena: $1,638 (–1.6%, –$26)
- CitiPower: $1,546 (+6.2%, +$90)
- AusNet: $1,908 (+0.3%, +$6)
The VDO averages a 1% increase across all zones.
What Households Can Do to Stay Ahead
Move-in Connect recommends taking action now to reduce the impact of rising rates:
- Check your current plan: Look at your latest bill to see if you’re on a default plan or a standing offer.
- Compare and switch immediately: If you’re on a market plan, switching now could still save you money. Many better deals could beat the post-increase rate.
- Consider hardship support: If paying bills becomes difficult, providers must offer payment plans or support programs.
- Maximise energy efficiency: Simple actions like switching off unused lights, using appliances during off-peak times, and boosting home insulation can reduce usage.
Wider Cost-of-Living Context
These electricity increases come amid rising costs across housing, groceries, and fuel. While the federal government’s energy rebate has helped, it will end soon. Many households will feel the pressure of squeezing power bills into tight budgets.
Why Immediate Action Pays Off
Switching plans now can secure a lower rate before the July price hike takes effect. Even a small discount of 5–10% compared to the default band can yield real savings, sometimes up to hundreds of dollars per year. Waiting until after the increase could lock customers into higher rates longer.
How Move-in Connect Can Help
Move-in Connect helps by:
- Comparing current offers vs DMO/VDO rates
- Giving advice on switching plans for the July increases
- Finding hardship and rebate programs
- Giving energy usage tips to reduce your bill
We help you understand where your money is going and if a different plan would help lighten the load.
Rates are going up but there are things you can do to limit the impact. Check your plan, compare options and act as soong as possible. A quick look now could save you big later.
Visit Move-in Connect online or call 1300 786 045 to get started and find a plan for your home and budget.
