Australians are being warned that their electricity prices will change from 1 July, with the Australian Energy Regulator (AER) and Victorian Essential Services Commission (ESC) confirming what the electricity market benchmark will be for the 2024-25 financial year for those in Victoria, South Australia, South East Queensland and New South Wales. But, no matter if your prices are expected to increase or decrease, Compare the Market says comparison is key in looking for an even better electricity deal, as the default offer is rarely the cheapest available.

According to the AER, the majority of residential customers will see price reductions, with price cuts confirmed for all distribution zones in New South Wales and South Australia. However, South East Queenslanders on the DMO will see prices increase by an average of 4.9% from 1 July.

Victoria’s electricity market is regulated separately from other parts of the country, but the Essential Services Commission (ESC) has confirmed that residential electricity customers in Victoria on the Victorian Default Offer will be around $100 better off from 1 July, on average. However, this average varies between the distribution zones across Victoria.

Source: AER and ESC. Based on residential customers without a controlled load on the Default Market Offer (DMO) or Victorian Default Offer (VDO). Prices may vary based on actual usage.

Compare the Market’s Head of Energy, Meredith O’Brien, said the final determinations would be welcomed news for many households that have battled the cost-of-living crisis over the past few years, but there’s more households can do to see even bigger savings.

“While any reduction in the electricity market benchmark is a win for Australians, our message for households is to see if you can save even more, because more often than not, there are savings out there,” Ms O’Brien said.

“About 80% of Australians we recently surveyed told us that they haven’t switched energy plans in the last 12 months – meaning they could be paying more than they need to for their gas or electricity supply. We’ve seen a number of new players enter the market and offer plans that are significantly below the default offer. We’re not in the same energy crisis we were a few years ago and things have really bounced back, so a standing offer is rarely the cheapest available.

“Even if you’re in a region where prices will increase from 1 July, you may still be able to save by comparing and switching to a more competitive offer. Of course, you may also see savings by changing your electricity consumption habits around the house. Whether it’s turning off standby power, utilising solar energy that’s generated during the day or investing in smart appliances, our message is to switch off and switch over to save.”

Ms O’Brien said the purpose of the DMO and VDO is to be a fair price for Australians on electricity standing offers and act as a reference price benchmark to compare alternative market electricity offers against.

The DMO was first introduced in 2019 as a cap on the price that retailers charge consumers for electricity on standing offer contracts in New South Wales, South East Queensland and South Australia, while it was introduced in the ACT in 2022. The VDO was introduced in July 2019 and has since replaced all standing offers following the Independent and Bipartisan Review of the energy market in Victoria.

The DMO is a cap i.e. the standing offer is the most expensive electricity plan that a retailer can sell in these jurisdictions, so all market offers must be equal to or less than this. The VDO is considered an average of available market offers. Market offers can be higher than the VDO in Victoria.

Around 495,884 (8.6%) of all households in NSW, SA and SE QLD are currently on the default offer – meaning they could be paying more than they need to for electricity. In Victoria, around 360,000 residential customers are currently on the VDO.

You may be on a standing offer contract if you’ve never switched to a market offer or if you switched electricity plans more than a year ago and their discounts have expired.

How can Compare the Market help?

Further energy bill relief could be just minutes away for thousands of Australians thanks to a new electricity and gas fully-online comparison tool helping households compare usage-generated prices from some of the country’s biggest retailers.

Compare the Market’s new digital end-to-end comparison service allows Aussies to enter bill details, personal energy usage information and solar export amounts to look for plans based on their actual energy usage. While bill comparison doesn’t mean that’s the amount you’ll pay on a future bill, it gives you a better idea of what you could pay compared to some of the generic comparison tools available online.

“There’s little value in getting a quote that’s irrelevant to your circumstances, which is why our new service allows you to input your actual usage, your electricity tariff type, whether you have a controlled load, and whether you have solar when comparing electricity. For gas, you can also add any additional or off-peak usage for optimal results,” Ms O’Brien said.

“The best part is it’s an easy digital-only service, meaning you are no longer waiting on hold on the phone or compare during office hours. We understand Australians are busy, so now you can use our energy comparison service 24/7.”

The new electricity market benchmarks will come into effect from 1 July. Australians can use Compare the Market’s free online energy comparison tool here.

For more information, please contact:  

Phillip Portman | 0437 384 471 | [email protected]

Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.