Time to read : 4 Minutes
The draft Default Market Offer (DMO) and Victorian Default Offer (VDO) for 2025-2026 has been released and Aussies should brace themselves as energy prices are on their way up again from 1 July.
Before we jump into the numbers and what you can do to manage your energy bills, here’s a quick explanation of the DMO and VDO.
The DMO is a government-set reference price for electricity for NSW, South East Queensland and South Australian residents.
The VDO applies to residents in Victoria.
Reference prices are a benchmark which makes it easier to compare energy plans from different retailers.
They act as a safety net to help prevent retailers from charging higher prices above the benchmark.
Be aware: don’t be mistaken that the term ‘draft’ means there’ll be adjustments. Draft essentially refers to the period leading up to 1 July. It gives the market – wholesalers, retailers and consumers time to make any changes before the new pricing is applied.
What the new pricing will be in NSW, SE Qld and SA?
The below table outlines what you can expect from the DMO. While the Sydney City and northern suburbs have the highest percentage increase, residents in regional NSW can expect to pay more with a yearly increase of $200.
Area | Provider | Percentage increase | Annual increase* |
Sydney city & northern suburbs | Ausgrid | 8.8% | $159 |
Sydney western & southern suburbs, Wollongong | Endeavour | 7.8% | $174 |
Regional NSW | Essential | 8% | $200 |
South East Qld | Energex | 5.8% | $119 |
South Australia | SA Power Networks | 5.5% | $114 |
Source: DMO 25-26
*annual increase compared to the current reference price for a single rate meter.
What about Victorian residents?
Residents in Victoria will be less impacted by electricity price increase with some retailers actually offering slightly lower prices. This may be more of a case of flattening out from higher increases previously.
Customers of CitiPower which services the city and inner suburbs will feel the increase the most with a 5% hike.
Area | Provider | Percentage increase | Annual increase* |
Outer northern & eastern suburbs, Eastern Victoria | Ausnet | -1% | -$19 |
Melbourne city & inner suburbs | CitiPower | 5% | $68 |
Northern & north-western suburbs | Jemena | 1% | $16 |
Western suburbs, Western Victoria | Powercor | -1% | -$19 |
Southern suburbs, Mornington Peninsula | United Energy | 1% | $15 |
Source: VDO 25-26
*annual increase compared to the current reference price for a single rate meter.
When you should shop around
Whether you’re on last year’s DMO / VDO or you negotiated a market offer, now’s the time to find a better deal. Let’s take a quick look at each scenario…
Is your current electricity bill on last year’s DMO / VDO?
If your electricity plan is currently your retailer’s default offer (sometimes also referred to as the reference price), and if you choose to do nothing, come 1 July you’ll start paying the new default price.
My tip is to shop around and find a 12-month market offer to help slash your bills. We have very competitive offers through Compare Club and it simply takes a phone call to find out more.
Are you currently on a market offer?
If you previously negotiated a market offer – in other words you switched retailers or plans for a better deal, you’re not paying the DMO/ VDO. It’s important you look at this every 12 months, because most plans only have a 12 month benefit period.
Tip: there’s no penalty for switching and you can switch retailers while on an offer, so there’s nothing to stop you.
Be aware: your retailer will provide some fine print to alert you about pricing changes from 1 July but they generally leave it up to you to take action. It’s a good idea to mark your calendar to shop around for a better deal to help you save money.
Not sure what plan you’re on?
Navigating your way around energy plans and pricing can be a tad complicated. You really need to compare like-for-like.
If you’re in Victoria, NSW, ACT, SE QLD or SA, the experts at Compare Club can help you find an electricity plan to shave some dollars from your bill.
If you’ve got your bill to hand when you speak to us, we’re able to quickly compare like-for-like and tell if you’re overpaying.
You can also upload your energy bill into Club+, Compare Club’s membership hub, so it’s easily available when you come to compare.
Energy rebates and concessions
While it’s unclear whether the federal government rebate of $300 will be extended in any capacity, Compare Club research showed that it did little to alleviate financial strain for households in the cost-of-living-crisis.
On a positive note, many Aussies don’t realise they could be eligible for various energy concessions which are state based. To see where and how you could save with government initiatives check your state government website or ask your energy retailer.
Bottom line
Regardless of what you’re currently paying or what sort of arrangement you’re on, when it comes to energy you really should review your plan every 12 months. There is the potential to save some serious dollars.
Remember, energy is complex so reach out to the experts at Compare Club, fill in a quick form and we’ll help you every step of the way.
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Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
