Electricity prices will fall for most households and small businesses on the Default Market Offer (DMO) from 1 July, with the AER today releasing its final prices for 2026-27.
Go to the DMO final determination
The DMO provides a regulated safety net for households and small businesses on standing offer electricity plans and acts as a reference price to help consumers compare market offers.
In the three regions where the DMO applies, the residential flat rate standing offer price will fall by between 3.4% and 5.0% in New South Wales and by 7.2% in South East Queensland compared to last year, while South Australian households will have a modest increase of 1.4%.
For smart meter households on a time of use standing offer, there are savings across all three regions, from a 1.1% decrease in South Australia to up to 10.7% in South East Queensland. New South Wales reductions range between 3.7% and 7.7%.
Small businesses will see reductions across all three DMO regions, with prices decreasing from 6.8% to 12.1% in South Australia, 10.4% to 14.0% in South East Queensland, and 9.0% to 20.9% in New South Wales, depending on whether their standing offer uses a flat rate or time of use tariff.
For more detailed pricing and tariff information, refer to our DMO 2026-27 Information Kit
Today's outcome
Since releasing draft figures in March, the AER has considered stakeholder feedback, updated inflation and economic forecasts, and changes in wholesale, network, environmental and retail costs to make its final decision.
AER Chair Clare Savage said today’s outcome reflects easing cost pressures in parts of the electricity supply chain and addresses industry and consumer feedback to ensure prices remain fair and workable in practice.
“This is a positive outcome with prices coming down for the majority of households and all small businesses across the three regions where the DMO safety net applies,” Ms Savage said.
“The reductions compared to last year reflect easing costs across most components of the DMO, particularly in wholesale energy, where we’ve seen lower electricity contract prices, reduced spot price volatility, and increased output from wind and battery generation during evening peaks.”
“Despite uncertainty created by conflict in the Middle East, wholesale energy costs have not increased.”
Ms Savage said recent government reforms mean the DMO is now calculated using only efficient costs, and in applying the new methodology, adjustments have been made from the draft to the final decision.
“Following extensive consultation after the release of our draft decision, we have adjusted our approach to applying network costs, which is to now blend network tariffs for customers on flat rate retail tariffs to better reflect the mix of older-style legacy meters and newer smart meters across the population,” she said.
“Our energy system is progressing towards full implementation of smart meters by 2030, so this decision reflects this transition.”
“Throughout this process, we’ve maintained a strong focus on ensuring consumers have access to a trusted, fair, and reasonably priced Default Market Offer that will remain fixed for the next 12 months.”
Final DMO price changes
For flat rate DMO customers:
- In New South Wales, prices will decrease between -3.4% ($66) and -5.0% ($137) for residential customers and between -9.0% ($432) and -11.3% ($705) for small business customers.
- In South East Queensland, prices will decrease by -7.2% ($155) for residential customers and -10.4% ($445) for small business customers.
- In South Australia, prices will increase by +1.4% ($33) for residential customers and decrease by -6.8% ($379) for small business customers.
For time of use DMO customers:
- In New South Wales, prices will decrease between -3.7% ($72) and -7.7% ($211) for residential customers and between -9.4% ($449) and -20.9% ($1,303) for small business customers.
- In South East Queensland, prices will decrease by -10.7% ($229) for residential customers and -14.0% ($601) for small business customers.
- In South Australia, prices will decrease by -1.1% ($25) for residential customers and decrease by -12.1% ($673) for small business customers.
The combined range of price changes (flat rate and time of use) are:
- New South Wales: Residential -3.4% to -7.7%, Small business -9.0% to -20.9%
- South East Queensland: Residential -7.2% to -10.7%, Small business -10.4% to -14.0%
- South Australia: Residential -1.1% to +1.4%, Small business -6.8% to -12.1%
Retailers will now begin preparing to offer the DMO prices as their standing offers from 1 July.
Solar Sharer Offer
For the first time, retailers will be required to offer a default Solar Sharer Offer, announced earlier this year as a way for more households, including those without rooftop solar, to make better use of Australia’s abundant solar generation.
The opt-in energy plan for customers with smart meters provides three hours of free electricity in the middle of the day, allowing those who can shift their usage to this period to potentially reduce their bills.
As a consumer safeguard, the price of the Solar Sharer Offer will be regulated using the same annual price as the time of use DMO available in each distribution zone.
Ms Savage said the overall message to consumers was to explore the market and shop around for the best deal they can find.
She said retailers are required to tell their customers at least once every 100 days if they could offer them a better plan.
“Once new prices take effect in July, it will be worth exploring which retailers offer further discounts off the DMO or new energy plans that better suit individual circumstances,” she said.
“The new Solar Sharer Offer is an opportunity to make further savings if households can shift some of their electricity usage, such as washing machines, air conditioning, or electric vehicle charging, into the middle of the day.
“We encourage consumers to speak to their retailer about how this new option works because for some households it could be a transformative way to reduce their electricity bills.
“With the Solar Sharer Offer now part of the DMO, there’s the added safety of it being a regulated price, which means consumers can feel confident they are not being overcharged outside the free power period.”
Consumers can compare available plans using the AER’s free and independent comparison website.