Choosing the best electricity plan for your Australian home in 2026-27 is a critical financial decision, with market offers continuing to outperform regulated standing offers for most households. While Default Market Offer (DMO) and Victorian Default Offer (VDO) prices have seen general reductions from 1 July 2026, driven by easing wholesale costs, actively comparing and switching to a market offer remains the most effective way to secure savings, potentially hundreds of dollars annually. The key lies in understanding your consumption patterns and matching them with the right tariff structure – particularly with the rise of Time-of-Use (TOU) plans and new ‘solar soak’ periods.
The Australian Electricity Landscape in 2026-27
Australia’s electricity market is a complex web of wholesale costs, network charges, retailer margins, and environmental scheme costs. From 1 July 2026, the Australian Energy Regulator (AER) and the Essential Services Commission (ESC) in Victoria have set new Default Market Offer (DMO) and Victorian Default Offer (VDO) prices, respectively. These regulated prices act as a safety net for customers who haven’t actively chosen a market offer and serve as a reference point for comparing deals.
Notably, the AER’s 2026-27 DMO determination has explicitly defined the structure of tariffs, often placing a greater emphasis on fixed daily supply charges with comparatively lower usage rates. This means your daily connection fee is increasingly important, regardless of how much power you consume.
Default Market Offer (DMO) 2026-27: Key Changes
For NSW, South East Queensland (SE QLD), and South Australia (SA), the DMO effective from 1 July 2026 shows varied impacts:
- New South Wales: Residential flat rate standing offer prices are falling by between 3.4% and 5.0% compared to the previous year. Households on Time-of-Use (TOU) standing offers could see even larger reductions, ranging from 3.7% to 7.7%. For example, a typical Ausgrid customer could save up to $66-$137 annually on a flat rate.
- South East Queensland (Energex): Residential flat rate prices have seen a significant decrease of 7.2%. TOU customers in SE QLD benefit from the largest reductions, down by up to 10.7%, equating to potential savings of $229 annually for residential customers.
- South Australia (SA Power Networks): This is the outlier, with residential flat rate standing offer prices seeing a modest increase of 1.4%. However, residential TOU customers will still see a decrease of 1.1%. SA continues to have one of the highest regulated usage rates in the country.
“This is a positive outcome with prices coming down for the majority of households and all small businesses across the three regions where the DMO safety net applies.” – AER Chair Clare Savage, May 26, 2026
Victorian Default Offer (VDO) 2026-27: Price Reductions
Victoria’s Essential Services Commission (ESC) has confirmed that VDO prices will decrease across all five distribution zones from 1 July 2026. Residential customers can expect an average annual bill reduction of 5%, while small businesses will see a 6% drop. These reductions are primarily driven by lower environmental, wholesale, and network costs.
For instance, residential customers in the AusNet area could see annual savings of up to $160, while those in the United Energy area might save around $50 (based on 4,000 kWh/year usage).
Regulated Markets: WA, NT, ACT, Tasmania
Outside the DMO/VDO regions, electricity prices are set by state and territory governments or their appointed regulators:
- Western Australia (Synergy/Horizon Power): Regulated tariffs increased by 2.75% from 1 July 2026 for the standard residential Home Plan (A1). The daily supply charge is now 119.24c per day, and the usage rate is 33.26c per kWh. WA does not have a competitive retail market, so shopping around between retailers is not an option.
- Northern Territory (Jacana Energy): Residential prices increased by 5.3% from 1 July 2026. The standard residential usage rate is 31.6788 c/kWh, with a fixed daily charge of 62.45 cents. A new residential tariff threshold of 164 kWh per day applies, with usage above this charged at a higher business tariff rate.
- Australian Capital Territory (ActewAGL): The standing offer for 2026-27 includes a usage charge of 36.9536 c/kWh and a daily supply charge of $1.3420.
- Tasmania (Aurora Energy): For 2026-27, the regulated usage charge is 24.7500 c/kWh, with a daily supply charge of $1.8200 per day.
Navigating New Tariffs: Time-of-Use and Fixed Charges
Time-of-Use (TOU) Tariffs: These plans charge different rates depending on the time of day and week. Peak periods (e.g., late afternoon/evening) are most expensive, while off-peak (e.g., overnight) and shoulder (e.g., midday) are cheaper. With the rise of solar generation, many networks are introducing a ‘solar soak’ or ‘super off-peak’ period during the middle of the day to encourage daytime consumption.
- NSW, SE QLD, SA: From 1 July 2026, a new “Solar Sharer Offer” is available. This opt-in plan provides three hours of free electricity (up to 24 kWh/day) in the middle of the day (11 am-2 pm in NSW/SE QLD, 12 pm-3 pm in SA). This is ideal for households with smart meters who can shift heavy appliance use or EV charging to these times.
- Victoria: The VDO 2026-27 introduces a new three-period TOU tariff structure, including a specific solar soak window (11 am-4 pm) with lower-priced power.
Fixed Charges (Daily Supply Charges): As noted, the AER’s DMO 2026-27 has shifted towards higher daily supply charges relative to usage rates. This impacts low-usage households more significantly, as a larger portion of their bill is fixed. Always consider the daily supply charge in conjunction with usage rates when comparing plans.
Solar Feed-in Tariffs (FiTs) 2026-27
For solar households, feed-in tariffs (FiTs) are credits received for excess solar electricity exported to the grid. While FiTs vary widely by state, retailer, and plan, the benchmark rates for 2026-27 are generally lower than import rates, reinforcing that self-consumption (using your solar power directly) offers the greatest savings.
| State/Territory | 2026-27 Flat Rate Benchmark/Regulated FiT | Notes |
|---|---|---|
| NSW (IPART) | 3.4 to 6.5 c/kWh | Retailer offers can vary, typically 4c-10c/kWh. |
| SE QLD (Energex) | Retailer-set | No regulated minimum, varies by plan. |
| Regional QLD (QCA) | 6.006 c/kWh | Regulated minimum. |
| SA | Retailer-set | No regulated minimum, varies by plan. |
| Victoria (ESC) | Retailer-set | No regulated minimum, varies by plan. |
| Tasmania (Regulated) | 9.276 c/kWh | Regulated minimum. |
| ACT | Retailer-set | No regulated minimum, varies by plan. |
| NT (Jacana Energy) | 9.33 c/kWh (anytime), 18.66 c/kWh (3pm-9pm Super FiT) | Often with daily export caps. |
If you have a home battery, optimising your solar usage and potentially participating in a Virtual Power Plant (VPP) can significantly boost your savings. Explore Maximise Your Home Battery Savings: Earn $1,000+ Annually with a VPP in 2026 for more details. For those considering solar, understanding Solar System Installation Costs in Australia 2026: A Complete Guide is essential.
Energy Bill Relief in 2026-27: What’s Available?
The universal federal Energy Bill Relief Fund concluded on 31 December 2025, meaning most households will no longer receive automatic credits. However, state and territory governments continue to offer targeted concessions for eligible cardholders:
- NSW: Commonwealth Seniors Health Card holders can access a $200 annual rebate.
- Victoria: The $100 Power Saving Bonus closed in March 2026, but the Utility Relief Grant Scheme (up to $650 per energy type) is still available for households facing short-term crisis.
- Queensland: The Queensland Electricity Rebate provides $399.47 annually for eligible concession card holders. The one-off $1,000 Cost of Living Rebate from 2024-25 has not been extended.
- South Australia: The Energy Bill Concession offers up to $291.27 annually, and the Cost of Living Concession provides a further $270.60 (2025-26 figures).
- Western Australia: The Energy Assistance Payment provides $377.14 annually. The 2024-25 $400 Household Electricity Credit was a one-off measure and has not been continued.
For a detailed breakdown of all available support, consult Australia’s Energy Bill Relief Landscape in 2026: A Comprehensive Guide to State and Federal Support.
How to Find the Best Plan for Your Home
- Understand Your Usage: Review past electricity bills to understand your average daily kWh consumption and, if you have a smart meter, identify your peak and off-peak usage patterns. This is crucial for determining if a TOU plan or the new ‘Solar Sharer Offer’ is right for you.
- Use Comparison Tools: The federal government’s Energy Made Easy website (energymadeeasy.gov.au) is the official, free, and independent comparison tool for NSW, SE QLD, and SA. For Victoria, use Victorian Energy Compare (victorianenergycompare.vic.gov.au). These platforms allow you to input your actual usage data for personalised comparisons.
- Compare Market Offers vs. Default Offers: Always aim for a market offer. While DMO/VDO prices have decreased, market offers are almost always more competitive. In Victoria, for example, households on a flat rate tariff could pay up to 27% less than the VDO price by switching to a market offer.
- Look Beyond the Headline Rate: Consider the entire plan. A high solar FiT might be offset by higher usage charges or daily supply charges. Pay attention to discounts, conditional offers, and contract terms.
- Check Daily Supply Charges: With the AER’s shift, these fixed charges are a growing component of your bill. Ensure they don’t disproportionately inflate your costs, especially if you have low usage.
- Review Regularly: Electricity plans and market conditions change frequently. Make it a habit to review your plan at least once a year, or whenever DMO/VDO prices are updated.
Bottom Line
For most Australian households, the best electricity plan in 2026-27 will be a competitive market offer tailored to your specific energy consumption habits, rather than a default standing offer. While DMO and VDO prices have seen welcome reductions, particularly in NSW, SE QLD, and Victoria, significant savings of hundreds of dollars annually are still available by actively comparing and switching. Embrace Time-of-Use tariffs, especially new ‘solar soak’ periods or the ‘Solar Sharer Offer’ if you have a smart meter and can shift your energy use. For those in regulated markets like WA and NT, understanding the government-set tariffs and maximising existing concessions is paramount. Use official comparison websites and review your plan regularly to ensure you’re not overpaying.