Default Offers announced for FY26

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From July 1, 2025, new Default Offer pricing will take effect across Australia, affecting both the Default Market Offer (DMO) set by the Australian Energy Regulator (AER) and the Victorian Default Offer (VDO) determined by the Essential Services Commission (ESC).

Default Offers

‘Default Offer’ prices put a cap on what retailers can charge for their standing offers, plus set the benchmark for discounting. Here’s everything you need to know

Savings as a ServiceRichard Foxworthy

Although only a minority of energy consumers are on default offers—approximately 8% in DMO regions and 12% of households in Victoria—these offers serve as benchmarks for the broader electricity market.

Changes in default offer prices often influence market offers, affecting a larger segment of consumers, and impact the apparent pricing for Market Offers since Market Offers are quoted as being x% above or below the Default Offer price.

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What Are Default Offers?

There are two kinds of Default Offer:

Default Market Offer (DMO): Set by the Australian Energy Regulator (AER), the DMO applies to New South Wales (NSW), South East Queensland (SE QLD), and South Australia (SA). It caps the maximum price retailers can charge residential and small business customers on standing offers and serves as a reference point for market offers.

Victorian Default Offer (VDO): Established by the Essential Services Commission (ESC) for Victoria, the VDO ensures that consumers who haven't engaged in the market receive a fair and reasonable price for electricity.esc.vic.gov.au+1esc.vic.gov.au+1

2025–26 Default Offer Prices

2025–26 Price Changes

Australian Energy Regulator (DMO):

From July 1, 2025, the AER's final determination indicates:

New South Wales: Residential customers on default plans will see increases between 8.3% and 9.7%. For instance, households in areas serviced by Essential Energy may experience annual bill increases from $2,513 to $2,741 .
South East Queensland: Increases range from 0.5% to 3.7% for residential customers.
South Australia: Residential customers face hikes between 2.3% and 3.2% .

Essential Services Commission (VDO):

In Victoria, the ESC's final decision for 2025–26 includes:

Residential Customers: An average annual bill increase of $20 (approximately 1%), with variations depending on the distribution zone. For example, customers in the CitiPower zone may see a $90 increase, while those in the Jemena zone could experience a $26 decrease.
Small Business Customers: An average annual bill increase of $90 (about 3%), with changes ranging from $10 to $177 across different zones