Power Price Increases: A State-by-State Breakdown

The Australian Energy Regulator's (AER) latest decision will see power prices rise for many in NSW, SA, and SE Queensland. The Default Market Offer (DMO) caps how much retailers can increase prices to recoup costs. The AER announced the 2025-26 DMO, with price changes depending on location and power company. In NSW, price changes will depend on where you live and which distribution network connects your place to power.

The Australian Energy Regulator (AER) has released its final determination for the Default Market Offer (DMO) prices for 2025-26, impacting households and small businesses in New South Wales (NSW), South East Queensland (SE Queensland), and South Australia (SA). The DMO sets a safety-net price for customers on standing offer plans and serves as a reference for other market offers.

Key changes in the DMO 2025-26 determination include:

- NSW: Residential customers will face increases of 8.3% to 9.7%, while small business customers will see increases of 0.8% to 8.5%.
- SE Queensland: Residential customers will experience increases of 0.5% to 3.7%, and small business customers will see increases of 0.8% to 8.5%.
- SA: Residential customers will face increases of 2.3% to 3.2%, and small business customers will see increases of 0.8% to 8.5%.

The AER noted that these increases are due to sustained pressures across most components of the DMO, with wholesale and network costs rising between 1% and 11% and retail costs between 8% and 35% compared to last year. The AER did not apply a competition allowance, which will alleviate a small amount of cost-of-living pressure on consumers.

AER Chair Ms. Clare Savage emphasized that better offers are available in the market, with 90% to 95% of competitive market offers below the current DMO price. On average, the lowest offers across DMO regions are between 18% and 27% cheaper.

The DMO determination, which comes into effect from 1 July 2025, highlights the ongoing challenges in the energy sector and the need for consumers to stay informed and engaged with their energy providers. Consumers are encouraged to compare available plans and seek better offers.

References:
[1] https://www.aer.gov.au/news/articles/news-releases/final-determination-2025-26-safety-net-prices-nsw-sa-and-se-qld
[2] https://www.pv-magazine.com/2024/09/17/genex-secures-state-backed-ppa-for-750-mw-of-solar-in-australia/