Switching electricity providers in Australia in 2026 is a straightforward process that can genuinely save households hundreds of dollars annually, especially following recent price adjustments. While the federal Energy Bill Relief Fund concluded at the end of 2025, new Default Market Offer (DMO) and Victorian Default Offer (VDO) price reductions, alongside ongoing state-specific rebates, mean there’s never been a better time to compare and switch. Households on uncompetitive standing offers could be overpaying by hundreds of dollars each year compared to the cheapest market deals.
Why 2026 is the Year to Switch
From 1 July 2026, benchmark electricity prices, including the Default Market Offer (DMO) and Victorian Default Offer (VDO), have seen significant changes across most of the National Electricity Market (NEM). The DMO, set by the Australian Energy Regulator (AER), acts as a price cap for standing offers in New South Wales, South East Queensland, and South Australia, and as a reference price for all other market offers. Similarly, Victoria’s Essential Services Commission (ESC) sets the VDO as a safety net for its customers.
For many, these changes bring a welcome reduction:
- New South Wales: Residential flat-rate DMO prices decreased by 3.4% to 5.0%, equating to annual savings of between $66 and $137. Time-of-use tariffs saw even greater reductions, down 3.7% to 7.7% (saving $72 to $211).
- South East Queensland: Residential flat-rate DMO prices fell by 7.2%, saving a typical household $155 annually. Time-of-use tariffs dropped by 10.7% (saving $229).
- Victoria: The average domestic VDO fell by 5%, making average annual bills for a typical household around $1,591, a significant reduction from previous years.
- South Australia: This state was an exception, with residential flat-rate DMO prices increasing by 1.4% (an average $33 annual rise). However, time-of-use tariffs still saw a slight decrease of 1.1% (saving $25).
These DMO and VDO figures represent the maximum a retailer can charge for standing offers. Competitive market offers are typically priced below these benchmarks, often providing even greater savings.
“Households on the default plan overpay up to $728 a year against the cheapest market offer we track.”
Step-by-Step Guide to Switching Electricity Providers
Switching is simpler than many Australians realise, often taking just minutes online. Here’s how:
Step 1: Gather Your Current Bill
Before you start comparing, have your most recent electricity bill handy. This bill contains crucial information, including:
- Your current retailer and plan name.
- Your National Meter Identifier (NMI) – a unique 10-digit number for your electricity connection.
- Your average daily and quarterly electricity usage (in kWh).
- Your current supply charge (daily rate) and usage charges (c/kWh).
- Any solar feed-in tariff (FiT) if you have solar panels.
Understanding your usage patterns is key to finding a plan that truly suits your needs, especially if you’re considering time-of-use tariffs or new options like the Solar Sharer Offer.
Step 2: Use Government Comparison Websites
Australia has free, independent government comparison tools that show all available offers for your specific address and usage. These are the most reliable way to compare:
- Energy Made Easy: For residents in NSW, QLD, SA, ACT, and Tasmania.
- Victorian Energy Compare: Exclusively for Victorian residents.
Input your NMI and usage data, and these tools will provide a personalised comparison of plans from various retailers, including estimated annual costs. This ensures you’re comparing apples with apples, factoring in all charges and discounts.
Step 3: Compare Offers and Retailers
Look beyond just the headline discount. Consider:
- Usage and Supply Charges: These are the core costs. Compare the cents per kilowatt-hour (c/kWh) and daily supply charge.
- Conditional Discounts: Are discounts conditional on direct debit, paying on time, or bundling with gas? Understand the terms.
- Contract Length and Exit Fees: Many market offers have no exit fees, offering flexibility.
- Solar Feed-in Tariffs (FiT): If you have solar, a good FiT can significantly reduce your bill. Be aware that some FiTs have decreased in 2026; for example, Momentum Energy’s NSW FiT decreased from 5c/kWh to 3c/kWh.
- Customer Service Reputation: Retailers like Red Energy are consistently rated highly for customer satisfaction. Momentum Energy was named Australia’s Best Energy Retailer in the 2026 Mozo Experts Choice Awards.
- Green Energy Options: Many retailers offer GreenPower options or carbon offsets. Leading retailers in Australia include Origin Energy, AGL, EnergyAustralia, Red Energy, and Alinta Energy.
New for 2026: The Solar Sharer Offer (SSO). This opt-in standing offer is available from 1 July 2026 in DMO jurisdictions (NSW, QLD, SA) for smart meter customers. It provides 3 hours of free electricity during the middle of the day (e.g., 11 am to 2 pm in NSW and South East Queensland). This can save households up to 24 kWh daily, even if they don’t have solar panels, by shifting usage to these free periods.
Step 4: Check for State-Specific Rebates and Concessions
While the federal energy bill relief has ended, numerous state-based rebates and concessions are still available in 2026. These can provide substantial savings for eligible households. For a comprehensive overview, refer to our guide: Australia’s Energy Bill Relief Landscape in 2026: A Comprehensive Guide to State and Federal Support.
| State/Territory | Key Rebates/Concessions (2026) | Annual Value (approx.) |
|---|---|---|
| New South Wales | Low Income Household Rebate | Up to $285 (retail) / $313.50 (embedded) |
| Family Energy Rebate | Up to $180 (retail) / $198 (embedded) | |
| Seniors Energy Rebate | $200 | |
| Medical Energy Rebate | Up to $285 | |
| Home Energy Saver Program (loans/discounts) | Up to $15,000 loan, $4,000 discount (later 2026) | |
| Victoria | Annual Electricity Concession | |
| Utility Relief Grant Scheme | Up to $650 per energy type (max $1,300) | |
| Solar Homes Program (solar/battery) | Up to $1,400 solar rebate + $1,400 loan | |
| Federal Cheaper Home Batteries Program | ~$252 per usable kWh (from May 2026) | |
| Queensland | Electricity Rebate | $399.47 |
| Medical Cooling & Heating Concession | $522.09 (from 1 July 2026) | |
| South Australia | Energy Bill Concession | Up to $291.27 |
| Cost of Living Concession (COLC) | $270.60 (2025-26) | |
| SACEDO (Origin Energy) | 20% off electricity usage/supply | |
| ACT | Electricity, Gas and Water Rebate | $800 (2026-27) |
| Home Energy Support Program | Up to $5,000 for upgrades |
Step 5: Make the Switch
Once you’ve chosen a new retailer and plan, the switching process is handled by your new provider. They will contact your old retailer and manage the transfer. This typically takes a few business days, and you won’t experience any interruption to your electricity supply.
Average Electricity Bills in Australia (2026)
Understanding average bills can help benchmark your potential savings. While individual usage varies, here’s a snapshot based on recent data:
| State | Average Quarterly Electricity Bill (Canstar, May 2026) | Average Annual Electricity Bill (approx.) |
|---|---|---|
| Queensland | $518 | $2,072 |
| Victoria | $470 | $1,880 |
| New South Wales | $497 | $1,988 |
| South Australia | $477 | $1,908 |
| Tasmania | $584 | $2,336 |
| Western Australia | $518 | $2,072 |
| ACT | $433 | $1,732 |
Note: Finder’s 2026 Energy Report indicates a national quarterly average range of $292 to $429. These figures are averages and your actual bill will depend on usage, household size, and specific tariffs. For example, a typical Brisbane household pays approximately $420 per quarter, or $1,680 annually. A 2-person household in Queensland averages around $497 per quarter.
Beyond Switching: Further Savings for 2026
Switching providers is a crucial first step, but it’s not the only way to save. Consider these additional strategies:
- Solar & Batteries: If you have solar, ensure your system is optimised. Adding a home battery can dramatically increase self-consumption and allow participation in Virtual Power Plants (VPPs) for additional earnings. Read our guides: Maximise Your Home Battery Savings: Earn $1,000+ Annually with a VPP in 2026 and Solar System Installation Costs in Australia 2026: A Complete Guide.
- Energy Efficiency Upgrades: Many states offer rebates for energy-efficient appliances, insulation, and heating/cooling systems. NSW’s Home Energy Saver Program offers zero-interest loans and discounts for such upgrades.
- Smart Energy Management: Utilise smart home devices and energy management systems to monitor and control your usage. This is particularly effective for shifting consumption to cheaper off-peak periods or free SSO periods. Explore: Best Home Energy Management Systems in Australia 2026: Slash Bills by $1,000+ Annually.
- Electric Vehicles (EVs): If you own an EV, consider how it can integrate with your home energy system. Some EVs can even act as home batteries (V2H/V2G) to power your home during peak times or outages. Our guide: Unlock $2,000+ Annual Savings: Your 2026 Guide to Using Your EV as a Home Battery (V2H/V2G).
Bottom Line
Don’t remain on an outdated or default electricity plan. The energy market in Australia is dynamic, and 2026 has brought both price adjustments and new opportunities for savings. By taking a proactive approach and using government comparison tools, you can easily switch providers and potentially save hundreds of dollars on your annual electricity bill. Prioritise comparing market offers against the DMO/VDO benchmarks, leverage available state rebates, and investigate further energy-saving technologies to future-proof your household budget.