‘Welcome relief’ on the way for many Aussie power bills
Hundreds of thousands of Australian households can expect to save up to $200 on electricity costs next financial year under safety net prices set by the regulator.
Default market quotes, as is known, are updated annually to reflect the cost of distributing electricity to businesses and households.
Comparative prices vary by region, but residential electricity customers in NSW, South Australia and south-east Queensland can expect price reductions of between 1.3 per cent and 10.1 per cent compared to the previous financial year.
The average household in NSW could pay between $58 and $226 less than in the previous year, and bills could be roughly $216 lower over 12 months in south-east Queensland.
A more modest drop of $31 can be expected for households in South Australia.
Small businesses will experience price drops of between 7.6 percent and 21.2 percent, depending on the region.
Wholesale electricity prices, pole and cable maintenance and construction, retail costs and compliance with government environmental plans influence the Australian Energy Regulator’s annual decision for the three states.
Regulatory chair Clare Savage said the lower default market quotes reflected the reduction in electricity costs, particularly wholesale power.
He said electricity contract prices have fallen, spot prices have become less volatile and wind and battery production has increased.
Lower retail operating costs and a more efficient price framework under government reforms were also highlighted.
“This draft decision signals the potential for welcome relief for households and small businesses following several years of rising energy costs following Russia’s invasion of Ukraine,” Ms Savage said.
Only 10 per cent of households and 18 per cent of small businesses unable to shop take advantage of retailers’ standard offers, and the regulator is encouraging customers to pursue more competitive offers.
Customers using the default offer will be able to save up to 12 percent on their energy bill by calling and switching to a mid-range offer.
Default market quotes also provide a basis for easily comparing other deals.
The regulator is expected to finalize the proposal in May.
Victoria reference prices were recommended by a separate state-based regulator last week.
The Essential Services Commission reported an average drop of 3 per cent, or $46, in annual bills across five regions compared to 2025/26.
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