The Australian Energy Regulator (AER) today released its final determination for the Default Market Offer (DMO) for electricity prices in 2025–26, known as DMO 7.

The DMO is a safety-net price for household and small business customers on standing offer plans in New South Wales (NSW), South East Queensland (SE Queensland) and South Australia (SA). It also acts as a reference price for all other market offers in each region.

From 1 July 2025, residential customers on standing offer plans will experience increases of 8.3% to 9.7% in NSW. Small business customers on standing offer plans will experience increases of 0.8% to 8.5%, depending on the region.

Energy Regulator Chair Ms Clare Savage said it was a difficult decision, with ongoing pressures across the majority of the DMO cost stack causing increases since the release of DMO 6 in 2024.

“We know this is not welcome news for consumers in the current cost-of-living environment. As noted in our draft determination, 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% and 11%, and retail costs between 8% and 35% compared with last year,” Ms Savage said.

“Since the draft determination we have used our compulsory information gathering powers to further scrutinise retail costs and refined part of this component of the DMO as a result.”

While economic conditions appear to have moderated in the most recent ABS update, this does not provide sufficient evidence of sustained easing of cost-of-living pressures and the Reserve Bank of Australia has noted the economic outlook remains uncertain.

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

“While the DMO protects consumers on standing offers that can’t or don’t engage in the market, as of this month 90% to 95% of competitive market offers are below the current DMO price. On average, the lowest offers across DMO regions are between 18% and 27% cheaper,” she said.

“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 your retailer must tell you on the front page of your bill if they can offer you a better deal.”