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ABC News
5 days ago
- Business
- ABC News
How much will power prices increase by next financial year? That depends on where you live
The Australian Energy Regulator's (AER) latest decision is set to see power prices rise for many people in three states. It announced what's called a Default Market Offer for the next financial year. Here's what it means for people in those three states — and what people in the rest of the country can expect. What's a default market offer? It's a cap electricity retailers can charge for power prices. Electricity retailers are the individual companies that sell power to homes and businesses — the company that sends you your power bill. But they don't generate the power they sell; they buy it from the wholesale market. The AER's default market offer (DMO) limits how much the retailers can increase their prices by to recoup their increasing costs. These companies might offer a range of different contracts or plans for power prices. But customers will typically be on a company's default plan unless they contact their energy provider and actively choose a different plan. DMO is a cap on how much companies can charge for that basic, automatic plan each year. "When advertising or promoting offer pricing, retailers must show the price of their offer in comparison to the DMO/reference price," the AER says. "This assists customers when comparing the price of different offers" The regulator officially announced the 2025-26 DMO yesterday, reigniting conversations about power prices and the rising cost of living. Does this apply to all states? No. While the AER sounds like it should be a national body, it only covers two-and-a-bit states: New South Wales New South Wales South Australia South Australia South-east Queensland "The DMO price does not apply in the ACT, Northern Territory, regional Queensland, Tasmania, Victoria or Western Australia because maximum standing offer prices in those regions are set by or under a law of a state or territory," the AER says. How much will my power bills go up by? That depends on which state you're in, which power company you go with and what plan you're on. So we can't give a definitive answer on that — but, by looking at the DMO figures, we can give you a general idea for the three states covered by the AER. Let's break it down state-by-state: Price changes will depend on where you live. That's because there's a cap for each distribution network, which is the system of power poles and wires that connect your place with power. Distribution networks are locationally specific, so you can't choose what distributor connects your place to power. Distributors are different to retailers, who just sell you power. There are three electricity distributors operating in the state: Most of regional NSW is on the Essential Energy network, which covers about 95 per cent of the state. AusGrid's area spans across Sydney, the Central Coast and Hunter regions. And Endeavour Energy Sydney's Greater West, the Blue Mountains, Southern Highlands and the Illawarra, and the South Coast. Residential customers without a controlled load*: Ausgrid distribution region: Increase by $155 Increase by $155 Endeavour Energy distribution region: Increase by $188 Increase by $188 Essential Energy distribution region: Increase by $228 Residential customers with controlled load*: Ausgrid distribution region: Increase by $208 Increase by $208 Endeavour Energy distribution region: Increase by $271 Increase by $271 Essential Energy distribution region: Increase by $280 * An example of a controlled load is metering for a specific device that can use off-peak power, like underfloor heating or off-peak hot water South Australia Residential customers without a controlled load*: Increase by $71 Increase by $71 Residential customers with controlled load*: Increase by $64 * An example of a controlled load is metering for a specific device that can use off-peak power, like underfloor heating or off-peak hot water South-east Queensland Residential customers without a controlled load*: Increase by $77 Increase by $77 Residential customers with controlled load*: Increase by $11 * An example of a controlled load is metering for a specific device that can use off-peak power, like underfloor heating or off-peak hot water When will these prices kick in? The DMO prices don't come into affect until the new financial year — so not until July 1. What about the rest of the country? Caps in the ACT are set by theIndependent Competition and Regulatory Commission. In a report also published on Monday, the commission estimated how much extra certain households would pay. Here's how much more the commission reckons people will pay: Small household: Annual increase of $125 Annual increase of $125 Average household: Annual increase of $214 Annual increase of $214 Large family household: Annual increase of $247 Northern Territory The Northern Territory's version of the AER is the Electricity Pricing Order. It sets regulated prices for retail customers consuming less than 750 MWh of electricity each year. This figure is generally the territory's treasurer, but you can find out more about it from the Utilities Commission of the Northern Territory. The commission's website only features the order currently in place, so it's unclear what changes people in the Northern Territory can expect to see on their bills yet. Tasmania Tasmania's version of the DMO is generally referred to as a standing offer. And this is set by the Office of the Tasmanian Economic Regulator. Residential bills for average customers would increase by about $49 per year for 2025-26, the regulator said earlier this month. At the moment, Aurora Energy is the only retailer required to offer standard retail contracts. "These regulated prices provide a safety net for small customers," the regulator said in its final report. "Standing offer prices are particularly important in Tasmania, with approximately 91 per cent of all Tasmanian small customers on a regulated tariff with Aurora Energy as at 31 December 2024." The rest of Queensland While the south-east corner of Queensland is covered by the AER, the rest of the sunshine state is covered by the The Queensland Competition Authority QCA. The CQA's final determination isn't out yet, but we have looked at its draft determination published in March. At the time, it said typical customers on the main residential tariff (tariff 11) could expect to pay about an extra $100annually in the coming financial year. Victoria Victoria's energy regulator the Essential Services Commission (ESC) has a similar cap, called the Victorian Default Offer. It was also published on Monday. The ESC said the statewide annual average increase would be $20. However, here's a breakdown according to the five distribution zones: AusNet: Increase by $6 Increase by $6 CitiPower: Increase by $90 Increase by $90 Jemena: Decrease by $26 Decrease by $26 Powercor: Increase by $4 Increase by $4 United Energy: Increase by $25 Western Australia The West Australian government determines household prices each year when handing down the state budget. This year, that won't happen until June 19. How can I get a better deal? For people in areas with multiple power companies, the general advice is to see what prices other companies are offering. If you find a price that's cheaper than what you're paying, ask the company you're currently with if they'll match this price. Then consider whether you'll stay with the company you're already with, or go with another company. But not everyone can choose their energy providers —here's more from ABC's climate reporting team on that: Posted 11m ago 11 minutes ago Tue 27 May 2025 at 2:32am
Epoch Times
5 days ago
- Business
- Epoch Times
Aussies Warned Electricity Prices Could Increase: NSW Bills Set to Rise About 9 Percent
Residents and business owners are being warned to expect electricity prices across three states amid the Labor government's push for more renewable energy. On May 26, the Australian Energy Regulator (AER) released the 2025-26 Default Market Offer (DMO) for energy prices for New South Wales (NSW), South East Queensland, and South Australia. The DMO is the maximum price that retailers can charge electricity customers on contracts, and serves as a benchmark for comparing market offers. Under the new DMO prices ( For example, a resident customer who uses around 3,900 kilowatt-hours of electricity a year in Ausgrid's distribution network will need to pay $1,965 (US$1282) from July 1, 2025, up from $1,810 previously–an 8.5 percent rise. Meanwhile, the price hikes in the two other regions are smaller, with residents and businesses being warned of increases between 3.7 percent and 0.8 percent in SE Queensland, and 3.2 percent and 3.5 percent in South Australia, respectively. Related Stories 5/25/2025 5/21/2025 AER Chair Clare Savage said it was a difficult decision for the agency to raise the DMO prices amid the current cost of living crisis. 'We know this is not welcome news for consumers in the current cost-of-living environment,' 'As noted in our draft determination, sustained pressures across almost all components of the DMO have driven these price rises.' The new DMO price increases come as the Labor has introduced some measures to reduce the cost of living burden for Australians, including a $150 What is Causing Price Increases? According to the AER, the latest price increases have been driven by the sharp rise in retail and network costs. While retail costs make up a relatively small portion of the DMO, they recorded the largest increase among all cost components—rising 35.4 percent, compared to 8.3 percent in the previous period. The AER report said this increase was due to growing costs reported by retailers, including bad and doubtful debts, the implementation of smart meters, and the cost of acquiring and retaining customers. Regarding network costs, the AER cited market factors such as higher inflation and interest rates that are compelling operators to charge higher fees. Other contributing factors include spending to improve network resilience to address climate change-related risks, integration of consumer energy resources (including rooftop solar, batteries and electric vehicles), and cyber security. High voltage electricity transmission towers in Newcastle, Australia, on April 14, the significant increase in DMO prices, Savage told consumers that they were unlikely to pay that much. 'While the DMO protects consumers on standing offers that can't or don't engage in the market, as of this month, 90 percent to 95 percent of competitive market offers are below the current DMO price,' she said. 'On average, the lowest offers across DMO regions are between 18 percent and 27 percent cheaper.' The AER chair also advised consumers to actively look for better deals and contact their suppliers if they have difficulties. 'I strongly encourage all consumers to avoid staying on an old or uncompetitive plan. Contact your retailer to see if you can get a better offer or shop around. At least every 100 days, your retailer must tell you on the front page of your bill if they can offer you a better deal,' she said. 'You can also compare available plans in the market by visiting our free and independent website–Energy Made Easy– Energy Minister Calls for More Renewables While Energy Minister Chris Bowen acknowledged the increases, he noted that it was 'encouraging news' as the price hike was not as high as previously anticipated in March. The minister also said it was the reason why the Labor government decided to extend the recent energy bill relief for a further six months. 'It's clear energy bills for Australians remain too high, and we're providing help for people doing it tough as we deliver longer-term reform,' In a statement on May 13, Bowen said that more renewable energy projects were needed to ensure 'cheaper energy' could flow into the grid and help lower electricity bills. 'The Albanese government's plan is the only one which is providing bill relief now and supported by experts to deliver a clean, cheap, reliable and resilient energy system into the future,' Minister for Climate Change Chris Bowen speaks to the media during a press conference at Parliament House in Canberra, Australia, on March 19, 2024. AAP Image/Mick Tsikas Labor's Energy Policies Have Failed: Opposition Meanwhile, opposition Liberal energy spokesperson, Ted O'Brien, said the latest DMO figures confirmed what Australians already knew–Labor's energy policies were struggling. He also stated that Australian families and businesses were being 'crushed' by the policy. 'Three years ago, [Prime Minister] Anthony Albanese and Chris Bowen promised cheaper power bills,' 'Instead, they've delivered among some of the highest electricity prices in the world. 'Everywhere you look, Labor's policies are failing. Labor is struggling to keep the lights, can't get offshore wind projects off the ground, gas supply is on a knife edge, and they can't even deliver own their reckless emissions targets.'
West Australian
6 days ago
- Business
- West Australian
Energy bills set to rise again after sharp increase in cost of maintaining and upgrading networks
Australian households and small businesses are set to pay more for electricity from July 1, as the energy regulator confirms price hikes driven by a sharp escalation in the cost of maintaining and upgrading the nation's power networks. The Australian Energy Regulator benchmark prices for electricity customers in New South Wales, South East Queensland and South Australia will rise between 0.5 per cent and 9.7 per cent, depending on their region. NSW customers will bear the brunt, with average household price rises of 8.3 to 9.7 per cent, driven primarily by higher wholesale electricity contract costs. NSW small business customers across the east coast will see increases of up to 8.5 per cent. The other jurisdictions under the Default Market Offer would not be a heavily affected, with price rises of 0.5 to 3.7 per cent in South East Queensland and 2.3 to 3.2 per cent in South Australia, with small business customers facing rises of up to between 0.8 per cent to 3.5 per cent. AER chair Clare Savage described it as a 'difficult decision' amid persistent cost-of-living pressures. 'Sustained pressures across almost all components of the DMO (Default Market Offer) have driven these price rises,' Ms Savage said, citing wholesale and network increases of up to 11 per cent and retail cost rises of up to 35 per cent in the past year. Ms Savage urged consumers to shop around, noting that 90 to 95 per cent of market offers remain below the DMO price, with discounts averaging between 18 and 27 per cent. The bill hikes reflect a blowout in construction costs for the network, a deeper structural issue that will continue to put upward pressure on bills, according to the Australian Energy Market Operator's Draft 2025 Electricity Network Options Report, released Friday. The report shows the cost of building and maintaining the high-voltage transmission system has ballooned by up to 55 per cent since the last planning cycle, driven by supply chain constraints, workforce shortages, and the sheer scale and complexity of new projects. 'AEMO recognises that increases in costs for electricity transmission network development would impact bills for electricity consumers,' the report noted. Even after accounting for inflation, the real costs of overhead line projects are up 25 to 55 per cent, while substation costs have climbed 10 to 35 per cent. Distribution upgrades needed to accommodate growing rooftop solar and battery use are also proving expensive, with augmentation costs ranging from $730,000 to $2.4 million per megawatt depending on location. For example, SA Power Networks faces average distribution upgrade costs of $1.6 million per megawatt, while Ausgrid in NSW is at the lower end at $730,000 per megawatt, according to AEMO. The surge in infrastructure costs is expected to feed through to retail electricity bills in the coming years, particularly as the energy system adapts to electrification, more variable renewables, and consumer energy resources such as rooftop solar, electric vehicles and batteries.
Yahoo
6 days ago
- Business
- Yahoo
Aussies facing major bill price hike
NSW households could have energy bill increases of up to 9.7 per cent from July 1, with South Australian and south east Queensland customers facing a hit of up to 3.7 per cent, according to the energy regulator. The figures were released in the final determination of the Default Market Offer, set by the Australian Energy Regulator (AER) on Monday. The offer sets the maximum price caps for bill increases for residential customers on standing offer plans in the 2025-26 financial year. Households in south east Queensland will see prices increase by 0.5 per cent to 3.7 per cent, South Australians face price hikes of between 2.3 per cent and 3.2 per cent, while NSW residents will be hit the hardest, with increases between 8.3 per cent and 9.7 per cent. Prices for NSW residents were slightly higher than the hikes listed in the AER's April draft determination. AER chair Clare Savage attributed the increases to the rising cost of energy production. 'We know this is not welcome news for consumers in the current cost-of-living environment,' she said. 'As noted in our draft determination, sustained pressures across almost all components of the DMO have driven these price rises, with wholesale and network costs rising in most jurisdictions between 1 per cent and 11 per cent, and retail costs between 8 per cent and 35 per cent compared with last year.' Modelling by Canstar Blue estimates annual power prices for the 2025-26 financial year will increase between $71 to $228 for households. The increase will hit NSW customers with Essential Energy the hardest, with the average annual electricity bill tipped to increase by 9.1 per cent from $2513 to $2741. Energy Minister Chris Bowen acknowledged that energy bills remained 'too high,' and urged households to compare plans using platform's like the government's Energy Made Easy comparison tool. 'With energy plans that are between 18 per cent and 27 per cent cheaper than the DMO it's worth shopping around,' he said. 'We also know 80 per cent of households aren't on the cheapest energy plan they could be which is why we're making it easier for households to find and switch to better plans. Check the Energy Made Easy website or for the cheapest plans in your area.' Error while retrieving data Sign in to access your portfolio Error while retrieving data
West Australian
6 days ago
- Business
- West Australian
Households face up to $228 electricity bill shock after Australian Energy Regulator issues final default market prices
NSW households could have energy bill increases of up to 9.7 per cent from July 1, with South Australian and south east Queensland customers facing a hit of up to 3.7 per cent, according to the energy regulator. The figures were released in the final determination of the Default Market Offer, set by the Australian Energy Regulator (AER) on Monday. The offer sets the maximum price caps for bill increases for residential customers on standing offer plans in the 2025-26 financial year. Households in south east Queensland will see prices increase by 0.5 per cent to 3.7 per cent, South Australians face price hikes of between 2.3 per cent and 3.2 per cent, while NSW residents will be hit the hardest, with increases between 8.3 per cent and 9.7 per cent. Prices for NSW residents were slightly higher than the hikes listed in the AER's April draft determination. AER chair Clare Savage attributed the increases to the rising cost of energy production. 'We know this is not welcome news for consumers in the current cost-of-living environment,' she said. 'As noted in our draft determination, sustained pressures across almost all components of the DMO have driven these price rises, with wholesale and network costs rising in most jurisdictions between 1 per cent and 11 per cent, and retail costs between 8 per cent and 35 per cent compared with last year.' Modelling by Canstar Blue estimates annual power prices for the 2025-26 financial year will increase between $71 to $228 for households. The increase will hit NSW customers with Essential Energy the hardest, with the average annual electricity bill tipped to increase by 9.1 per cent from $2513 to $2741. More to come
