Sydney and Brisbane households on Origin Energy plans are facing steep increases to their daily supply charges, with some seeing jumps of up to 100% from July 1, 2026. This move comes despite the Australian Energy Regulator (AER) confirming overall reductions in Default Market Offer (DMO) electricity prices for New South Wales and South East Queensland, leading to confusion and frustration among consumers expecting bill relief.

Energy retailer Origin has begun notifying customers this week about the impending changes. While usage charges are generally decreasing, the significant hike in daily supply charges will alter how many Australians’ electricity bills are calculated, potentially offsetting anticipated savings for some.

In late May, the AER released its final Default Market Offer (DMO 8) determination for 2026–27, outlining that residential flat rate standing offer prices would fall between 3.4% and 5.0% in New South Wales and by 7.2% in South East Queensland. For smart meter households on time-of-use tariffs, reductions were even larger, up to 7.7% in NSW and 10.7% in South East Queensland. These reductions were driven by easing wholesale costs, increased renewable generation, and improved interconnector capacity.

However, Origin’s revised pricing structure reveals a different picture for many customers. For instance, some customers on the ‘Origin Go Variable’ plan have been notified of their ‘Daily Supply’ charge increasing from AUD$1.79 per day to AUD$2.69 per day. Other reported increases include jumps from AUD$0.86 per day to AUD$1.72, and from AUD$1.28 to AUD$2.44 per day. These represent increases between approximately 50% and 100%.

“We understand increases to supply rates and decreases to usage rates have created confusion for some customers,” an Origin spokesperson stated. “The impact on a customer’s bill will ultimately depend on how much electricity they use.”

While Origin anticipates that overall bills will be lower for most customers, the distribution of these savings will vary significantly. Households with high electricity consumption may see greater benefits from reduced usage rates. Conversely, those with lower consumption, or those who heavily rely on rooftop solar and export a significant portion of their generation, might find the increased daily fixed charge eroding their expected savings or even leading to a net increase in their overall bill.

The DMO acts as a price cap for standing offers and a reference price for market offers. It’s crucial for consumers to understand that the DMO is not necessarily the cheapest plan available. Market offers from retailers are often priced below the DMO. This latest move by Origin underscores the importance for Australian households to actively compare their energy plans.

What These Changes Mean for Your Bill

The shift towards higher fixed daily supply charges and lower variable usage rates fundamentally changes the economics of electricity consumption. This structure can disproportionately impact households that have invested in energy efficiency measures or rooftop solar to reduce their usage. While the overall cost of electricity consumed might drop, the unavoidable daily fee increases.

For customers in NSW and South East Queensland, the AER’s DMO reductions were a welcome announcement. However, the details of individual retailer plans, like Origin’s, demonstrate that the benefits of these reductions are not always straightforward. This makes it more important than ever to engage with your energy provider or use comparison services to ensure you are on the most suitable plan for your consumption habits. Australians concerned about their energy bills should review their current plan against available market offers, especially as the new rates take effect from July 1.

For many, actively switching from a standing offer to a more competitive market offer could yield better savings than simply waiting for DMO changes to flow through. Resources like the AER’s EnergyMadeEasy website (for DMO regions) or the Victorian Energy Compare website (for Victoria) can assist consumers in finding a plan tailored to their needs. Understanding your household’s energy usage patterns – whether you use more power during peak times or are able to shift consumption to off-peak or solar soak periods – is vital for selecting the best tariff structure.

With these changes, consumers should:

  • Review their latest bill: Understand your current daily supply charge and usage rates.
  • Contact Origin (or your retailer): Clarify how the new July 1 pricing will specifically impact your household based on your consumption profile.
  • Compare market offers: Do not assume your current plan, even with the DMO changes, is the most competitive. Compare it against other retailers’ offers.

This period of price adjustments serves as a strong reminder that an informed approach to energy consumption and plan selection is key to managing household budgets. For further guidance on reducing your energy expenditure, consider exploring strategies beyond just your tariff. Navigating Australia’s Energy Bill Relief and Support in 2026: A Comprehensive Guide and Smart Home Energy Systems: Slash Your 2026 Australian Electricity Bills by Up To 30% offer valuable insights into optimising your energy use and leveraging technology for savings.

For those considering electrification or solar, understanding how these new tariff structures interact with your investments is crucial. For instance, households with electric vehicles should assess whether their current charging habits align with new time-of-use tariffs. Slash EV Charging Costs by Up To $800/Year: Best Electricity Plans in Australia 2026 provides detailed analysis on this.

The energy market continues to evolve, and while wholesale prices are showing signs of stabilisation due to renewable energy growth, the structure of retail tariffs remains dynamic. Staying proactive is the most effective way to protect your hip pocket.