Sophie Foster
Updated 20 Mar 2026, 9:23am
First published 20 Mar 2026, 1:00am
Aussie households hard hit by rates and fuel prices rises could save hundreds off their electricity bill - some with three hours free daily - under new prices by the Australian Energy Regulator.
AER has released draft prices for the 2026-27 year. Picture Glenn Hampson
The AER’s 2026-27 draft prices show households could save up to $226 a year and small businesses slash costs by a jaw-dropping $1,320, something chair Clare Savage said would be “welcome relief … after several years of rising energy costs”.
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Draft determination of residential rates. Source: Australian Energy Regulator.
But Donald Trump and Benjamin Netanyahu’s war on Iran could still throw a spanner in the works for that price relief with the AER warning the Middle East conflict could influence wholesale electricity costs before the final determination is issued on May 26, 2026.
“The draft DMO prices were calculated prior to the current conflict. Forward contracts are slightly higher, but still below last year’s levels. We will continue monitoring closely,” Ms Savage said.
AER’s draft default market offer decision – released Thursday – signalled price drops across three major states: New South Wales, Queensland and South Australia.
Under the proposal, Queensland households on the Energex network – which operates across the south east – would see residential prices fall a massive 10.1 per cent (-$216) and small businesses 12.8 per cent (-$550).
New South Wales residential customers on Essential Energy could save 8.2 per cent (-$226) while small businesses could slash costs by a huge 21.2 per cent (-$1,320).
South Australian households would see smaller reductions of 1.3 per cent (-$31), with small businesses saving 15.2 per cent (-$845).
Default market offer prices. Source: Australian Energy Regulator.
AER said the DMO provided a safety net for households and small businesses on standard electricity plans, offering a fair price even if you don’t shop around.
From July 1, households with smart meters can opt into the Solar Sharer Offer, giving three hours of free electricity daily from 11am to 2pm in NSW and SE QLD, and 12pm to 3pm in SA. Customers who shift energy use into those free windows, such as running appliances or charging EVs, could cut their bills even further.
Canstar.com.au data insights director Sally Tindall said “the tide is finally turning on electricity costs”.
“But,” she said, “households who can shop around could save hundreds more than the DMO itself.”
Ms Savage said fewer than 10 per cent of households and about 15 per cent of small businesses remained on a DMO, with recent retail data showing some customers could save up to 13 per cent by moving to a mid-market offer in their region.
AER said retailers were also required to tell their customers at least once every 100 days if they could offer them a better plan.
The AER is now seeking feedback on the draft DMO through a three-week consultation process from March 18 to April 9.
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