Australian households in New South Wales and Queensland are grappling with unexpected changes to their electricity bills from Origin Energy, with daily supply charges set to jump by as much as 100% from 1 July 2026. This comes despite broader announcements of overall bill reductions for many customers following the Australian Energy Regulator’s (AER) Default Market Offer (DMO) determination.
Origin Energy has begun notifying customers this week about these pricing adjustments, which will see usage rates decrease, but fixed daily supply charges surge. For some customers on plans like the Origin Go Variable, the daily supply charge will increase from AUD$1.79 to AUD$2.69 per day. Other reports indicate jumps from AUD$0.86 to AUD$1.72 per day, or from AUD$1.28 to AUD$2.44 per day, representing increases of up to 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 most customers will see an overall reduction in their bills, the significant increase in fixed daily charges has caused widespread frustration and confusion. Higher consumption households are more likely to benefit from the reduced usage rates, potentially offsetting the increased supply charge. However, those with lower consumption or those who have actively managed their usage may find the fixed charge increase disproportionately impacts their savings.
The Discrepancy: DMO Cuts vs. Retailer Adjustments
The AER’s final Default Market Offer (DMO) for 2026–27, released on 26 May 2026, confirmed lower default electricity prices across most regions from 1 July 2026. Residential flat rate standing offer prices in NSW were set to fall by 3.4% to 5.0%, and in South East Queensland by 7.2%. Small businesses were also slated for significant reductions.
However, the DMO primarily serves as a safety net for customers on standing offers and acts as a reference price for market offers. While approximately 10% of households are on a DMO, major retailers like Origin use these determinations as a reference point for their own market offer pricing.
Origin has clarified that while they consider DMO changes, their market offer rates are not necessarily identical to the DMO. The company factors in network costs, wholesale energy costs, operational expenses, and market conditions when setting prices.
Impact on Households
For an Origin customer on the ‘Go Variable’ plan, a daily supply charge increase from AUD$1.79 to AUD$2.69 represents an additional AUD$0.90 per day, or approximately AUD$328.50 annually, before considering usage. This substantial fixed cost shifts more of the bill burden from variable consumption to simply being connected to the grid.
Customers who have invested in energy efficiency measures or rooftop solar to reduce their usage may find this change particularly jarring, as a larger portion of their bill becomes unavoidable. For those with rooftop solar, maximising self-consumption remains the most effective strategy to mitigate rising costs. For more insights on managing your energy use, consider exploring guides on Smart Home Energy Systems: Slash Your 2026 Australian Electricity Bills by Up To 30%.
What Origin Customers Should Do
Given these changes, it is imperative for Origin customers in NSW and Queensland to review their latest billing notifications carefully. Understanding the new daily supply charges and usage rates is the first step. Customers should then consider using energy comparison websites to evaluate if their current Origin plan remains competitive against other market offers.
| Charge Type | Old Rate (Example) | New Rate (Example) | Change (Approx.) |
|---|---|---|---|
| Daily Supply Charge | AUD$1.79/day | AUD$2.69/day | +AUD$0.90/day |
| Daily Supply Charge | AUD$0.86/day | AUD$1.72/day | +AUD$0.86/day |
| Daily Supply Charge | AUD$1.28/day | AUD$2.44/day | +AUD$1.16/day |
| General Usage | AUD$0.404/kWh | AUD$0.348/kWh | -AUD$0.056/kWh |
This table illustrates reported examples of changes, which vary by location and specific plan.
An Origin spokesperson advised customers seeking clarification to contact the company directly. For those experiencing financial difficulty, energy retailers offer assistance programs. Information on broader energy bill support can be found in resources like Navigating Australia’s Energy Bill Relief and Support in 2026: A Comprehensive Guide.
The shift towards higher fixed charges underscores the importance of actively engaging with the energy market. While overall average bills may decrease, individual circumstances will dictate the true impact, making proactivity in comparing plans essential for managing household budgets effectively in the lead-up to winter. For further advice on reducing your energy expenditure, our article on Slash Your Winter 2026 Electricity Bill by $500+: Post-Rebate Strategies for Australian Homeowners offers practical strategies.