Household and small business energy bills across parts of eastern Australia are set to fall by up to 10 per cent under the Australian Energy Regulator’s latest Default Market Offer (DMO).
The DMO sets a price cap on what retailers can charge customers on standing offers and outlines modest reductions for households, along with larger savings for small businesses in New South Wales, southeast Queensland, and South Australia.
In New South Wales, residential customers on flat-rate plans will see price reductions ranging from 3.4 per cent ($66) to 5.0 per cent ($137), while households in southeast Queensland will receive a 7.2 per cent cut, equivalent to around $155.
Customers on time-of-use tariffs are also expected to benefit, with lower standing offer prices across all three states.
In South Australia, household bills are forecast to fall by 1.1 per cent ($25), while small businesses are set to receive a significant reduction of about 20.9 per cent ($673).
In southeast Queensland, household bills will decrease by 10.7 per cent ($229), while small business customers could see reductions of up to 14 per cent ($601).
In New South Wales, small businesses are expected to benefit from cuts ranging between 9.4 per cent ($449) and 20.9 per cent ($1303), depending on their usage profile.
The federal government said the 2026–27 determination is the first under a revised pricing framework designed to improve consumer protection and deliver better value.
Energy Minister Chris Bowen said the price reductions are being driven by increased renewable energy generation and expanded battery storage, which are reducing reliance on coal and gas during peak demand periods.
He added that Australia has reached around 50 per cent renewable energy generation, with more than 400,000 home batteries installed since mid-2025 under federal incentives.
New consumer protection rules will also come into effect from July 1, including restrictions on price increases during fixed-term contracts, limits on annual price adjustments, and bans on misleading fees.
Despite the reductions, Australian households are still facing higher electricity costs overall, with official data showing a 25.4 per cent rise in power prices over the past year.
