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Australian power users received a reprieve earlier this year as the default market offer (DMO), which is the benchmark against which retailers price their plans, was cut by between 1% and 10% from 1 July, following lower wholesale power (generation) costs amid a relatively calm summer.
The relief will be short-lived, however, with network costs, which account for around 40% of electricity bills, set to rise by 10% for some customers following approval from the Australian Energy Regulator (AER).
Approved increases for 2026–27 include:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.