Electricity Bills Could Surge by Up to $200 from July: What You Need to Know
From 1 July 2025, millions of Australians could see electricity bills rise by as much as $200 a year, following draft price updates announced by Australia’s energy regulators. The Australian Energy Regulator (AER) and Victoria’s Essential Services Commission (ESC) have both released their draft determinations for the next Default Market Offer (DMO) and Victorian Default Offer (VDO). These changes are set to impact households in New South Wales, Queensland, South Australia, and Victoria. The announcements come just as the federal government prepares to issue the final round of electricity rebates in April.
How Much Will Default Electricity Prices Rise?
If approved, annual electricity bills for customers on standing offers could increase between 5.1% and 8.8%, depending on the state and distributor. That could mean up to $200 more each year.
In Victoria, the changes are smaller. Draft figures show some regions might actually see a small decrease, while others could face increases of up to $68 per year.
While most Australians are on market offers (which are usually cheaper), default offers still influence overall pricing and act as safety nets for customers who haven’t actively chosen a plan.
| Region | Price | Change |
|---|---|---|
| Ausgrid (NSW) | $1,969 | up $159 or 8.8% |
| Endeavour Energy (NSW) | $2,397 | up $174 or 7.8% |
| Essential Energy (NSW) | $2,713 | up $200 or 8.0% |
| Energex (QLD) | $2,185 | up $119 or 5.8% |
| SA Power Networks (SA) | $2,344 | up $114 or 5.1% |
| Distributor | Price | Change |
|---|---|---|
| AusNet Services | $1,883 | down $19 or -1% |
| CitiPower | $1,524 | up $68 or 5% |
| Jemena | $1,680 | up $16 or 1% |
| Powercor | $1,680 | up $19 or 1% |
| United Energy | $1,569 | up $15 or 1% |
What Happens Next?
These draft prices are open for public consultation and may change before they’re finalized. Final prices will be confirmed by:
24 May 2025 (Victoria)
26 May 2025 (NSW, Queensland, and South Australia)
The new prices will come into effect from 1 July 2025.
⚡ Comparing Energy Plans: Finding the cheapest energy plan can save you hundreds of dollars a year. Compare providers based on usage rates, supply charges, and discounts using Selectra's Website. Click below to get the best deal for your home—savings are only one click away!
Prices Could Still Go Higher
It’s worth noting that draft prices often increase before they’re finalized. Over the past six years, 67% of draft DMO prices were revised upwards. In 2024–25, four out of five draft prices were raised in the final decision—one distributor even saw a $44 jump.
| Distributor | Draft Price | Final Price |
|---|---|---|
| Ausgrid | $1,773 | $1,810 (+$37) |
| Endeavour | $2,185 | $2,223 (+$38) |
| Essential | $2,549 | $2,513 (-$36) |
| Energex | $2,022 | $2,066 (+$44) |
| SA Power | $2,222 | $2,230 (+$8) |
What Is a Standing Offer?
A standing offer is the default rate a retailer must offer you if you haven’t chosen a specific plan. It’s typically more expensive than market offers but acts as a regulated fallback. While only 8.1% of customers in AER zones are on standing offers, these offers still act as reference prices for marketing and comparison.
Switching Now Could Save You Hundreds
You don’t need to wait until July to save money. Selectra’s research shows that switching to a competitive market plan could save you up to $386 per year in NSW alone.
| City | Potential Savings |
|---|---|
| Sydney | Up to $386 |
| Melbourne | Up to $319 |
| Brisbane | Up to $445 |
| Adelaide | Up to $425 |
| Hobart | Up to $139 |
| Canberra | Up to $444 |
Stay Ahead of the Price Surge
With energy bills set to rise again—particularly in NSW, South East Queensland, and South Australia—now is the time to take action. With government rebates ending soon and other costs increasing, comparing plans today could save you hundreds before the July changes kick in.
Need help switching electricity providers? Call Selectra on 1300 560 964 and we’ll help you find a cheaper deal in just a few minutes.
Frequently Asked Questions: Electricity Price Changes in Australia (2025)
Why are electricity prices increasing in Australia in 2025?
Electricity prices are rising due to increased wholesale costs, higher network charges, ongoing maintenance and upgrades of electrical infrastructure, and retailer operational expenses.
How much will electricity prices increase for households?
Draft price updates project a rise of 5.1% to 8.8%, leading to increases of up to $200 annually for households on default offers in NSW, Queensland, and South Australia, with more moderate changes in Victoria.
What are Default Market Offer (DMO) and Victorian Default Offer (VDO)?
DMO and VDO are regulated maximum prices retailers can charge customers on default electricity plans — often those who haven't chosen a competitive market plan. They set benchmark prices and act as consumer safeguards.
What are the new draft electricity prices for 2025-26?
Examples include: Ausgrid (NSW) $1,969 (+8.8%), Endeavour Energy (NSW) $2,397 (+7.8%), Essential Energy (NSW) $2,713 (+8.0%), Energex (QLD) $2,185 (+5.8%), SA Power (SA) $2,344 (+5.1%). In Victoria, prices vary by zone from decreases to increases up to $68/year.
When will the new electricity prices take effect?
The new prices are scheduled to take effect on 1 July 2025, after regulatory decisions are finalized by late May 2025.
Can prices still increase after these drafts?
Yes, historically, final prices have often been higher than draft figures, with many draft prices revised upwards before approval.
What can households do to reduce the impact of rising electricity prices?
Households can save money by switching to competitive market plans, using less electricity during peak times, investing in energy-efficient appliances, or installing solar panels where suitable.
Where can consumers find help comparing energy plans?
Services like Selectra provide tools and expert advice to compare and switch to the best energy deal based on individual usage and preferences.
Click below to find a better deal for your home!
At Selectra Australia, we pride ourselves on delivering content that is 100% written, reviewed, and fact-checked by real people. We do not use artificial intelligence tools—such as ChatGPT, Google Gemini, or any other generative AI platforms—to produce or edit the content found on this page. Every article and guide is created by our in-house team of Australian content specialists, energy experts, and researchers who understand the local market and care deeply about providing accurate, up-to-date, and genuinely helpful information. We believe trust is built through transparency and human insight—never automation.
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