Energy price hikes save Aussie families huge

Aussie households hit hard by rates and rising fuel prices could save hundreds on their electricity bills – with an extra three hours free every day – under new rates from the Australian Energy Regulator.

The AER’s draft prices for 2026-27 show households could save up to $226 a year and small businesses could cut costs by $1,320, something chairman Clare Savage said would be “a welcome relief … after several years of rising energy costs”.

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Draft determination of occupancy rates. Source: Australian Energy Regulator.

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But Donald Trump and Benjamin Netanyahu’s war on Iran could put a spanner in the works for that price release with AER warning that the conflict in the Middle East could have an impact on the cost of electricity before the final decision is made on May 26, 2026.

“DMO draft prices were calculated prior to the current conflict. Forward contracts are slightly higher, but below last year’s levels. We will continue to monitor closely,” Ms Savage said.

The AER’s draft market decision – released on Thursday – signed 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 house prices drop by a whopping 10.1 per cent ($216) and small businesses by 12.8 per cent ($550).

New South Wales residential customers on Essential Energy can save 8.2 per cent ($226) while small businesses can reduce costs by a whopping 21.2 per cent ($1,320).

South Australian households will see a smaller reduction of 1.3 per cent ($31), small businesses will save 15.2 per cent ($845).

Prices of automatic market offers. Source: Australian Energy Regulator.

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The AER said the DMO provided a safety net for homes and small businesses with standard electricity plans, offering you a fair price or no purchase.

From 1 July, homes with smart meters can access the Solar Sharer Offer, which offers three hours of free electricity every day from 11am to 2pm in NSW and SE QLD, and 12pm to 3pm in SA. Customers who switch energy use during those free windows, such as appliances or charging EVs, can reduce their bills even more.

Canstar.com.au data director Sally Tindall said “the situation is opening up electricity costs”.

“But,” he said, “families that can afford to buy can save hundreds more than the DMO itself.”

Ms Savage said less than 10 per cent of households and 15 per cent of small businesses remained in the DMO, with recent retail data showing some customers could save up to 13 per cent by moving to a mid-market unit in their region.

The AER said retailers are required to tell their customers at least once every 100 days if they can’t 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.