
Aussies Warned Electricity Prices Could Increase: NSW Bills Set to Rise About 9 Percent
On May 26, the Australian Energy Regulator (AER) released the 2025-26 Default Market Offer (DMO) for energy prices for New South Wales (NSW), South East Queensland, and South Australia.
The DMO is the maximum price that retailers can charge electricity customers on contracts, and serves as a benchmark for comparing market offers.
Under the new DMO prices (
For example, a resident customer who uses around 3,900 kilowatt-hours of electricity a year in Ausgrid's distribution network will need to pay $1,965 (US$1282) from July 1, 2025, up from $1,810 previously–an 8.5 percent rise.
Meanwhile, the price hikes in the two other regions are smaller, with residents and businesses being warned of increases between 3.7 percent and 0.8 percent in SE Queensland, and 3.2 percent and 3.5 percent in South Australia, respectively.
Related Stories
5/25/2025
5/21/2025
AER Chair Clare Savage said it was a difficult decision for the agency to raise the DMO prices amid the current cost of living crisis.
'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.'
The new DMO price increases come as the Labor has introduced some measures to reduce the cost of living burden for Australians, including a $150
What is Causing Price Increases?
According to the AER, the latest price increases have been driven by the sharp rise in retail and network costs.
While retail costs make up a relatively small portion of the DMO, they recorded the largest increase among all cost components—rising 35.4 percent, compared to 8.3 percent in the previous period.
The AER report said this increase was due to growing costs reported by retailers, including bad and doubtful debts, the implementation of smart meters, and the cost of acquiring and retaining customers.
Regarding network costs, the AER cited market factors such as higher inflation and interest rates that are compelling operators to charge higher fees.
Other contributing factors include spending to improve network resilience to address climate change-related risks, integration of consumer energy resources (including rooftop solar, batteries and electric vehicles), and cyber security.
High voltage electricity transmission towers in Newcastle, Australia, on April 14, 2023.Amid the significant increase in DMO prices, Savage told consumers that they were unlikely to pay that much.
'While the DMO protects consumers on standing offers that can't or don't engage in the market, as of this month, 90 percent to 95 percent of competitive market offers are below the current DMO price,' she said.
'On average, the lowest offers across DMO regions are between 18 percent and 27 percent cheaper.'
The AER chair also advised consumers to actively look for better deals and contact their suppliers if they have difficulties.
'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,' she said.
'You can also compare available plans in the market by visiting our free and independent website–Energy Made Easy–www.energymadeeasy.gov.au.'
Energy Minister Calls for More Renewables
While Energy Minister Chris Bowen acknowledged the increases, he noted that it was 'encouraging news' as the price hike was not as high as previously anticipated in March.
The minister also said it was the reason why the Labor government decided to extend the recent energy bill relief for a further six months.
'It's clear energy bills for Australians remain too high, and we're providing help for people doing it tough as we deliver longer-term reform,'
In a statement on May 13, Bowen said that more renewable energy projects were needed to ensure 'cheaper energy' could flow into the grid and help lower electricity bills.
'The Albanese government's plan is the only one which is providing bill relief now and supported by experts to deliver a clean, cheap, reliable and resilient energy system into the future,'
Minister for Climate Change Chris Bowen speaks to the media during a press conference at Parliament House in Canberra, Australia, on March 19, 2024.
AAP Image/Mick Tsikas
Labor's Energy Policies Have Failed: Opposition
Meanwhile, opposition Liberal energy spokesperson, Ted O'Brien, said the latest DMO figures confirmed what Australians already knew–Labor's energy policies were struggling.
He also stated that Australian families and businesses were being 'crushed' by the policy.
'Three years ago, [Prime Minister] Anthony Albanese and Chris Bowen promised cheaper power bills,'
'Instead, they've delivered among some of the highest electricity prices in the world.
'Everywhere you look, Labor's policies are failing. Labor is struggling to keep the lights, can't get offshore wind projects off the ground, gas supply is on a knife edge, and they can't even deliver own their reckless emissions targets.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CBS News
3 hours ago
- CBS News
Safeway workers in Northern, Central California set Friday night deadline to avoid strike
Thousands of Safeway employees throughout Northern and Central California may soon go on strike, warning they could walk off the job as soon as this weekend. The United Food and Commercial Workers Union (UFCW) Local 8, Local 5 and Local 648 have issued a deadline of midnight on Friday, July 25 for a new contract. Workers are seeking higher wages and improved benefits. Both sides, along with a federal mediator, met for bargaining last week but no deal was reached. The unions are accusing Albertsons, which owns Safeway, of stalling negotiations. "The company has rejected several proposals—offering neither a rationale nor a counteroffer and has yet to offer a comprehensive wage proposal," UFCW 8 said in a statement. "We have been bargaining for months, our members have voted nearly unanimously to authorize a strike, and we're done waiting." Bargaining sessions are set to take place on Thursday. A spokesperson for Safeway said in a statement to CBS News Bay Area, which read in part, "We have scheduled bargaining sessions this week and continue to work with a federal mediator. While we are disappointed that the Unions have indicated the possibility of a strike at some of our stores, we fully respect our associates' right to engage in collective bargaining." "We are hopeful a resolution will be reached soon, as we have in other parts of the country through successful collaboration with our union partners to secure agreements that recognize and reward our dedicated associates while supporting the company's ongoing growth," the spokesperson added.


Bloomberg
6 hours ago
- Bloomberg
US Jobless Claims Fall for a Sixth Week, Lowest Since Mid-April
By Updated on Save Applications for US unemployment benefits fell for a sixth straight week, underscoring the resilience of the labor market. Initial claims decreased by 4,000 to 217,000 in the week ended July 19, still the lowest since mid-April. That marked the longest stretch of declines since 2022, and the figure fell short of the median forecast in a Bloomberg survey of economists.


Bloomberg
15 hours ago
- Bloomberg
Is AI Fueling the UK's Hiring Freeze?
Subscribe to In the City on Apple Podcasts Subscribe to In the City on Spotify Across the UK, companies are starting to rethink who they hire and, in many cases, if they hire at all. A new McKinsey & Co. report shows a sharp decline in job openings for roles most at risk of being automated, signaling that artificial intelligence isn't just looming on the horizon—it's already speeding up the UK's labor market slowdown.