Some states may see electricity bills rise by almost 10%

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Key Points

A draft paper opens the door for a rise in energy maximum prices across south-east Australia for 2025-26.
Some customers already had their prices hiked 40 per cent two years ago.
The default market offer is set to rise up to 9 per cent.

Energy bills are expected to rise from 1 July after the energy regulator released its draft ‘safety net’ prices for 2025-26.

Prices that electricity retailers can charge households and businesses in NSW, south-east Queensland and South Australia are limited by annual figures known as the default market offer (DMO), released by the Australian Energy Regulator (AER).

The planned price rise comes while Australians are already struggling with their energy bills.

Euan, a 61-year-old who receives the disability support pension and lives in social housing with his wife and children, said a rise in electricity prices would make life tougher.

“We’d have to really cut back and I’m talking about cutting back in food and maybe certain medications that I need,” he said.

“Although I have air conditioning in the room that I’m in here, the rest of the house doesn’t have air conditioning and it gets very, very hot in the summer when we’ve had the heat waves,” Euan said.

Mounting energy bill stress

Nearly two-thirds of the 1,011 people surveyed are struggling with the cost of energy bills, according to a new report from the Australian Council of Social Service (ACOSS), an advocate for action to reduce poverty and inequality.

The survey found half of respondents were going without food, medicine or other essentials to try to pay their energy bills.

First Nations people and renters were particularly impacted, with 88 per cent struggling to afford their bills, followed by renters (76 per cent), income support recipients (75 per cent) and people with a disability or chronic health condition (72 per cent).

ACOSS CEO Dr Cassandra Goldie said: “It’s a complete travesty that in one of the world’s wealthiest nations people are getting sick, skipping meals and delaying medical appointments because they can’t afford to cool and power their homes.”

She said there’s an urgent need to help people improve the thermal performance of housing, electrify and access rooftop solar and home batteries, with the most help going towards low-income and First Nations housing.

The findings also show 67 per cent of respondents have tried to reduce their energy use to lower their energy bills.

With the federal budget approaching, at least 80 per cent of Australians want the federal energy rebate to be extended, according to a survey conducted by comparison site Canstar Blue.

Sally Tindall, data and insights director at Canstar said: “Soaring summer temperatures have sent many households’ electricity use through the roof, and while the temporary rebate has helped keep a lid on bills since mid last year, the clock is now winding down.”

, but it’s unclear if it will be further extended, with the last round of installments set to be issued from 1 April.

How much will energy prices rise?

As per AER’s draft decision, NSW customers are set to experience the largest increase of 7.8 to 8.8 per cent under the draft prices.

This is set to result in prices between $2,714 to $3,174 for controlled load customers and $1,969 to $2,713 for other customers.

A phone with a screen lit next to cash on a table.

Energy bills are anticipated to increase starting 1 July, following the energy regulator’s release of draft ‘safety net’ prices for 2025-26. Credit: AAP

The price in south-east Queensland is set to be $2,475 for customers with controlled load and $2,185 for those without, an increase of 2.5 and 5.8 per cent.

Similar increases in South Australia will leave households with controlled load paying a maximum of $2,881 and for those without (increasing by 4.4 and 5.1 per cent respectively).

Controlled load refers to a separate rate charged for appliances such as hot water systems and swimming pool pumps that are wired separately from the rest of the home.

For small businesses, prices will increase between 4.2 per cent and 8.2 per cent ($4,439 and $6,183).

AER chair Clare Savage said: “We’ve seen cost pressures across nearly every component of the DMO.”

The default market offer remains in a draft stage as it is open for consultation until 3 April 2025, before being finalised in May.