The Australian Energy Regulator (AER) has published its “default market offer” (DMO), which is the regulated maximum price for electricity. This DMO acts as a protective measure for residential and small business consumers.

While power companies cannot charge above the DMO, consumers are free to shop around for improved deals.

Residential users in New South Wales are expected to see the most significant increases starting July 1, 2025, with those on standard plans witnessing increases ranging from 8.3% to 9.7%.

South-east Queensland households will be hit with rises of between 0.5 per cent to 3.7 per cent, while customers in South Australia will experience price hikes of 2.3 per cent to 3.2 per cent.

Small business customers on standing offer plans will face increases of 0.8 per cent to 8.5 pe rcent, depending on the region.

The three states are home to about 17 million of Australia’s roughly 27 million population.

AER chair Clare Savage says increasing transmission and wholesale electricity costs were behind the price rises for households and small businesses.

“We know this is not welcome news for consumers in the current cost-of-living environment,” she said.

“Sustained pressures across almost all components of the DMO have driven these price rises, with wholesale and network costs rising in most jurisdictions between 1 per cent and 11 per cent, and retail costs between 8 per cent and 35 per cent compared with last year.”

Savage says better offers below the DMO price are available, and that retailers are obliged to support customers under national energy laws.

“I strongly encourage all consumers to avoid staying on an old or uncompetitive plan. Contact your retailer to see if you can get a better offer or shop around.”

At least every 100 days, retailers must tell customers on the front page of their bill if they can offer a better deal.