What Rising Energy Costs Mean for Australian Homes (and How to Navigate Them)

Energy prices are on the rise across Australia, affecting households in every state and territory. Whether you’re in New South Wales, Victoria, or South Australia, understanding what’s driving these increases and learning how to mitigate their impact is essential. 

This comprehensive guide explains the reasons behind the 2025–26 residential electricity price increases under the Default Market Offer (DMO 7) and Victorian Default Offer (VDO). These regulated prices apply to customers on standing offer contracts in relevant regions. We’ll also provide actionable tips to help you compare electricity plans, manage your energy usage, and make informed choices for your household. 

Note: This content is general in nature and does not consider your personal circumstances. Consider seeking independent advice before making energy or financial decisions. 

Why Are Energy Prices Increasing in Australia? 

Several factors are contributing to residential energy price rises, including: 

• Higher Network Tariffs: The cost of maintaining and upgrading transmission and distribution networks has increased, impacting overall electricity prices. 
• Wholesale Energy Costs: Fluctuations in coal, gas, and renewable energy inputs have raised wholesale prices.  
• Smart Meter Rollout: Efforts to improve energy tracking and efficiency through widespread smart meter installations come with initial costs. 
• Bad Debt Provisions: Rising financial hardships have led to higher overdue accounts, which utilities account for in their pricing. 

With these drivers in play, monitoring your energy usage and exploring better plans can help you stay on top of rising costs. 

Energy Price Changes by State 

Here’s a snapshot of the 2025–26 energy price increases under the Default Market Offer (DMO 7) and Victorian Default Offer (VDO): 

Default Market Offer (DMO 7) 

The DMO sets base prices in regions like New South Wales (NSW), South East Queensland (SEQ), and South Australia (SA). Here's an overview:  

New South Wales (NSW)

• Residential customers without controlled load 

Ausgrid: $1,965/year (+$155, 8.6%) 

Endeavour Energy: $2,411/year (+$188, 8.5%) 

Essential Energy: $2,741/year (+$228, 9.1%) 

• Residential customers with controlled load 

Ausgrid: $2,717/year (+$208, 8.3%) 

Endeavour Energy: $3,072/year (+$271, 9.7%) 

Essential Energy: $3,211/year (+$280, 9.6%) 

South East Queensland (SEQ)  

• Residential customers 

Energex: $2,143/year (+$77, 3.7%) 

• With controlled load 

$2,425/year (+$11, 0.5%) 

South Australia (SA)  

• Residential customers 
• SA Power Networks (SAPN): $2,301/year (+$71, 3.2%) 
• With controlled load 
• $2,824/year (+$64, 2.3%)

Source: aer.gov.au 

Victorian Default Offer (VDO) 

The VDO serves as the reference price for residential customers on standing offers with flat tariffs, as defined by Victorian energy regulators. 

• 2025–26 Average Prices Across Victoria: $1,675/year (+$20, 1.2%) 
• Price breakdown by distribution zone (based on 4,000 kWh/year): 

AusNet Services: $1,908 (+$6, 0.3%) 

CitiPower: $1,546 (+$90, 6.2%) 

Jemena: $1,638 (–$26, –1.6%) 

Powercor: $1,703 (+$4, 0.2%) 

United Energy: $1,579 (+$25, 1.6%) 

• Electricity Price Changes for 2025–26 (Flat Tariff)  

NSW – Ausgrid: $1,965 (+$155, +8.6%)  

NSW – Endeavour: $2,411 (+$188, +8.5%)  

NSW – Essential: $2,741 (+$228, +9.1%)  

SEQ – Energex: $2,143 (+$77, +3.7%)  

SA – SAPN: $2,301 (+$71, +3.2%)  

VIC (Average): $1,675 (+$20, +1.2%) 

Source: esc.vic.gov.au 

What You Can Do to Manage Rising Energy Costs 

Although energy prices are climbing, there are ways to effectively manage your bills and find better deals. Here are some practical tips: 

1. Compare Electricity Prices  

Start by shopping around for a better deal. Many Australians stick with their existing provider, missing out on potentially significant savings. 

• Use trusted platforms like Electricity Provider to compare electricity prices and plans tailored to your location and energy usage. 
• Compare offers using tools like the Australian Energy Regulator’s Energy Made Easy website. 

2. Audit Your Energy Usage  

Understanding where and how you use energy can make a big difference. Install a smart meter to monitor your consumption in real time and identify habits that could be costing you. 

• Shift energy-intensive tasks (like laundry) to off-peak hours if you're on a time-of-use tariff. 
• Use heating and cooling systems efficiently—for example, adjusting thermostats by just 1 degree can lower energy consumption by up to 10%. 

3. Invest in Energy-Efficient Appliances  

Replace older appliances with energy-efficient models. Look for the Energy Rating label to evaluate appliances based on their energy consumption and opt for higher star ratings where possible. 

• Switch to LED lighting, which uses 75–80% less energy than traditional incandescent bulbs. 
• Use an energy-saving mode on appliances like dishwashers and washing machines. 

4. Take Advantage of Solar Power  

If it’s within your budget, installing solar panels is one of the most effective ways to reduce reliance on the grid and lower electricity bills. Many regions offer rebates and incentives to reduce upfront costs. 

• Feed-In Tariffs: Earn credits by selling excess energy generated by your solar system back to the grid. Compare plans to find the ideal provider for solar households. 

5. Apply for Concessions and Rebates  

Check whether your state or territory offers energy concessions, rebates, or hardship programs. These can make a significant impact on your overall electricity costs. 

• Explore options such as the Victorian Power Saving Bonus or NSW Energy Rebates. 

6. Switch to Renewable Energy Plans  

Support sustainability while reducing energy costs by exploring GreenPower plans, which allow you to purchase certified renewable energy from your supplier. 

7. Bundle Your Utilities  

Some providers offer discounts when you bundle electricity with gas or internet plans. Just ensure the bundled deal actually saves you money and meets your needs. 

Trusted Resources to Explore  

• How to Connect Electricity to a New Home in Australia  
• How to Change Electricity Providers in Australia  
• What Is the Price of Electricity per kWh in Australia 

Take Control of Your Energy Bills Today  

Rising electricity prices don’t have to leave you feeling powerless. By understanding the factors driving these increases and exploring strategies to reduce your bills, you can take control of your energy costs. 

Don’t wait for your next electricity bill to shock you. Take action today by comparing energy plans to find the ideal deal for your home.  

Visit comparison platform like Electricity Provider to explore available energy plans based on your location and usage profile.