Millions of Australian households and small businesses across New South Wales, South East Queensland, and South Australia will see changes to their electricity bills from July 1, 2026, following the Australian Energy Regulator’s (AER) final Default Market Offer (DMO) determination. Released on May 26, 2026, the DMO 8 decision reveals varied price shifts, with many customers set for significant annual savings, including up to $211 for some NSW households on time-of-use tariffs. For the first time, the determination also introduces a new ‘Solar Sharer Offer’, providing three hours of free midday electricity for eligible smart meter customers.
Separately, the Queensland Competition Authority (QCA) announced on June 5, 2026, that regulated electricity prices for regional Queensland will also decrease, with typical households on Tariff 11 saving approximately $151 annually.
DMO 8: What Changes for NSW, SE QLD, and SA?
The AER’s DMO acts as a safety net, setting the maximum price retailers can charge residential and small business customers on standing offer contracts. It also serves as a reference price, helping consumers compare market offers. The latest determination reflects easing wholesale electricity costs and reduced environmental scheme costs, though network charges have seen some adjustments.
Residential Flat Rate Customers (Typical Annual Savings/Increases):
| State/Network Zone | Average Change (Flat Rate) | Estimated Annual Impact (Residential) |
|---|---|---|
| NSW (Ausgrid) | -3.4% | -$66 |
| NSW (Endeavour Energy) | -5.0% | -$137 |
| NSW (Essential Energy) | -3.4% | -$66 |
| SE QLD (Energex) | -7.2% | -$155 |
| SA (SA Power Networks) | +1.4% | +$33 |
Note: Figures are for typical residential customers on flat rate standing offers.
For households with smart meters on time-of-use standing offers, the savings can be even more substantial. NSW customers could see reductions between 3.7% ($72) and 7.7% ($211), while those in South East Queensland might experience a 10.7% ($229) decrease. South Australian residential time-of-use customers will see a 1.1% ($25) decrease.
“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,” stated AER Chair Clare Savage. “The reductions compared to last year reflect easing cost pressures in parts of the electricity supply chain.”
Small businesses will also benefit, with reductions across all three DMO regions, ranging from 6.8% to 20.9% depending on the state and tariff type.
Introducing the Solar Sharer Offer
A significant new feature of the DMO 8 is the introduction of the Solar Sharer Offer. This opt-in electricity plan, available from July 1, 2026, is designed for customers with smart meters and offers three hours of free electricity during the middle of the day.
- NSW & SE QLD: Free electricity between 11 am and 2 pm.
- South Australia: Free electricity between 12 pm and 3 pm.
The Solar Sharer Offer aims to encourage households to shift energy-intensive activities to periods of abundant solar generation, potentially lowering overall system costs. While the annual cost is regulated to be the same as the DMO Time-of-Use tariff, the free midday period is offset by slightly higher rates during other times. This initiative is particularly beneficial for those who can adapt their energy usage, such as running washing machines, dishwashers, or charging an electric vehicle during the designated free window.
Regional Queensland Sees Significant Relief
Customers in regional Queensland, whose electricity prices are regulated by the Queensland Competition Authority (QCA), are also set for reductions. The QCA’s final determination, released on June 5, 2026, confirms that most residential and small business customers will see lower bills from July 1.
For typical households on Tariff 11, annual bills are expected to decrease by 6.9%, equating to approximately $151 in savings. Small businesses on the main small business Tariff 20 could see an average reduction of 11.3%. These decreases are largely attributed to lower wholesale energy costs.
Victoria’s Default Offer Also Reduced
While the AER’s determination covers NSW, SE QLD, and SA, Victoria has its own independent regulator, the Essential Services Commission (ESC). The ESC announced on May 25, 2026, a reduction in the Victorian Default Offer (VDO) for 2026-27, with residential customers seeing an average 5% ($84) decrease to their annual electricity bills. This ensures a consistent trend of price adjustments across most of the National Electricity Market (NEM).
What This Means for Your Bill
Despite the positive changes for many, it’s crucial for consumers to understand that the DMO and VDO are safety net prices. They are not necessarily the cheapest plans available on the market. Regulators and consumer advocates consistently urge households and small businesses to actively compare energy plans and switch providers to secure the best possible deal.
Retailers are mandated to inform customers if they can offer a better plan. Households who haven’t reviewed their energy plan in the last 12 months are likely paying more than necessary. Exploring market offers can unlock further discounts beyond the default rates. For those facing continued cost-of-living pressures, understanding available support and making informed choices is key. Further information on managing energy costs can be found in our comprehensive guide, Navigating Australia’s Energy Bill Relief and Support in 2026: A Comprehensive Guide.
The introduction of the Solar Sharer Offer also highlights the growing importance of smart energy management. Households with smart meters who can shift their energy use to midday periods could significantly reduce their bills. For broader strategies on reducing winter energy consumption, refer to Slash Your Winter 2026 Electricity Bill by $500+: Post-Rebate Strategies for Australian Homeowners.
These latest determinations signal a dynamic period for Australian electricity prices, driven by evolving wholesale markets and increasing renewable energy penetration. Savvy consumers who engage with the market and leverage new offers like the Solar Sharer plan stand to benefit the most from these changes.