Energy prices are a key factor driving inflation and increasing the cost of living for many Australians. With the Energy Bill Relief Fund coming to an end, households will soon face higher electricity bills, adding to the financial pressure.
Why your bill is going up in 2026
Energy bills are expected to rise next year as temporary relief measures end and ongoing cost pressures continue.
One key factor is the end of the Energy Bill Relief Fund. In July 2025, the Government extended this scheme to provide households with two automatic $75 quarterly rebates applied directly to electricity bills through the end of 2025. However, these rebates will not continue into 2026, meaning households will lose this financial support and face higher costs. Other state rebate schemes have also been wound up.
Another important factor is the annual adjustment of Default Market Offer (DMO) prices, which occurs each July. In 2025, the DMO increased by close to 10% in some regions in response to rising wholesale energy and network costs. While the 2026 adjustment has not been announced yet, it is expected to reflect ongoing cost pressures, potentially leading to further increases in household energy bills.
What Australians are currently paying for energy
Energy prices are climbing steadily in Australia.
In July 2025, the Australian Energy Regulator (AER) increased the DMO – the benchmark electricity price set by the AER to protect customers on standard plans from paying too much – by as much as 9.7% in NSW, South Australia and parts of Queensland. Other states also saw rises due to higher wholesale and supply costs.
Based on standing offers across the country, our calculations show the average annual electricity bill is now about $1,994 – though this varies depending on where you live.
Average bill data is based on a three-person household using roughly 5,000 kWh of electricity per year.
However, thanks to a series of government rebates and relief schemes, many households haven’t felt the full impact of these rising costs – yet.
Data from the Australian Bureau of Statistics (ABS) highlights how these rebates have helped households, providing a buffer to help them save on their electricity bills.
These schemes have provided temporary relief, but as they wind down, households could begin feeling the full effect of higher electricity costs from the end of the year.
How to make sure you aren’t overpaying on your electricity bills
-
Review your plan before prices rise
Take a moment to review your energy plan. It’s easy to stay on the same deal for years without realising there might be better, cheaper options available. Checking now could save you from paying more down the track.
-
Check if you’re on a default offer
Being on a default plan could mean paying significantly more than necessary. Comparing your options and switching to a market offer can often save hundreds of dollars.
-
Pick the right tariff
Think about how you use electricity and whether your tariff matches that. For example, if you have the option to choose, a time-of-use tariff might save money if you use most electricity at night, while a flat rate could be cheaper if your usage is spread throughout the day.
-
Reduce unnecessary energy use
Leaving lights or appliances on when not in use adds to your electricity bill. Turning them off when you don’t need them can help lower your costs.
-
Think ahead with solar
If you’re in a position to, consider investing in solar panels. This reduces how much electricity you need to buy from the grid and could help shield you from future price rises.
How much you could save by comparing electricity plans
If you live in NSW, VIC, SA, ACT, TAS or South East QLD, there’s a wide range of electricity plans you can pick from. Not all are equal, however. Many will offer sign-up bonuses or discounts, and prices alone can still differ significantly – so it pays to shop around.
| State | Cheapest plan (quarterly) | Most expensive plan (quarterly) | Price difference |
|---|---|---|---|
| NSW | $369 | $490 | $121 |
| VIC | $295 | $385 | $90 |
| SE QLD | $455 | $534 | $79 |
| SA | $454 | $760 | $306 |
| TAS | $490 | $560 | $70 |
| ACT | $497 | $627 | $130 |
| Source: Econnex, Energy Made Easy Estimated costs based on a household on a single rate tariff and usage of 16.4 – 16.71 kWh per day as of November 2025. |
|||
Find a cheaper electricity plan
Unfortunately, if you reside in WA, the NT or regional QLD you can’t pick your electricity provider. However, if you’re in WA, you can still review your Synergy plan and make sure you’re on the cheapest one.
Are there any new government energy incentives?
Although the Energy Bill Relief Scheme is ending, you may still be eligible for various state concessions and rebates that can help lower your energy costs.
Looking ahead, in July 2026, the Government plans to introduce the Solar Sharer offer, letting households in NSW, South East Queensland and South Australia use free solar electricity during peak daylight hours – even if they don’t have solar panels. This could help families cut their energy bills and reduce overall pressure on the electricity grid.
New protections from the Australian Energy Market Commission (AEMC) will also be introduced in July 2026, making it easier for households to find fair energy deals. The changes will limit how often prices can rise, reduce unfair fees and penalties, and ensure customers won’t pay more if their plan benefits change.