On 1 July 2026 the regulated default electricity prices reset, as they do every year, and most east coast households will see their reference price change with them. The exact direction and size depend on where you live and which network area you sit in, so the only number that matters is the one on your own bill and in your regulator’s final determination.
Here is the longer version. Each year the regulators publish a benchmark that retailers must quote their plans against. That benchmark feeds into standing offers and shapes a lot of market offers too. It is not the price you are forced to pay, and a single national “average” rarely describes your street. Knowing how it works is the difference between sighing at a bigger bill and actually doing something about it.
Who sets the price, and where
Two different regulators run two different benchmarks, depending on your state.
The Australian Energy Regulator, the AER, sets the Default Market Offer, or DMO. It applies in New South Wales, South Australia and south-east Queensland. The DMO is both a reference price, the figure retailers must compare their plans to, and a cap on standing offers for customers who have never switched.
Victoria runs its own version. The Essential Services Commission sets the Victorian Default Offer, the VDO, for Victorian households and small businesses.
Everywhere else is set differently again. Regional Queensland, Western Australia, Tasmania and the territories each have their own arrangements, so if you live outside the DMO and VDO zones, neither benchmark describes your bill. The table below is a rough map, not a quote.
| Region | Benchmark | Regulator |
|---|---|---|
| NSW, SA, south-east QLD | Default Market Offer (DMO) | Australian Energy Regulator |
| Victoria | Victorian Default Offer (VDO) | Essential Services Commission |
| Regional QLD, WA, TAS, territories | Set separately | State or territory arrangements |
What the reset actually does
The regulators publish their final determinations in the weeks before 1 July, and the new prices take effect from the start of the financial year. When the benchmark moves, three things tend to follow.
- Standing offers shift. If you have never switched retailer or plan, you are most likely on a standing offer, which is capped by the benchmark. When the cap changes, your price usually changes with it.
- Market offers re-anchor. Retailers quote their market plans as a discount or premium against the reference price. When the reference moves, the headline “X percent below the reference price” claims get recalculated against a new baseline.
- The new number is published. The final determination lands before 1 July, so you can read the actual figure for your network rather than rely on a national headline.
A quick warning on those percentages. A plan advertised as “10 percent below the reference price” is only as good as the reference price it is measured against. If the benchmark rises, a plan can stay “below reference” while still costing you more in dollars than last year.
Why your change is not the headline change
The benchmark is built from the same cost layers that sit under any bill: wholesale generation costs, network charges to move power down the wires, and retail costs and margin. Those layers vary enormously by network area. A change in one network can look nothing like the change in the next suburb’s network, which is why a national average can be close to meaningless for your specific address.
So when you see a figure quoted in the news as at June 2026, treat it as a signal of direction, not a personal forecast. For the number that applies to you, read the AER or Essential Services Commission final determination for your network, and then check it against your own bill once the new rates appear. Confirm the current figure with the AER and your retailer before you assume anything.
The reference price is a measuring stick, not a price tag. The only figure that matters is the one on your own bill, in your own network, after 1 July.
What households can actually do
The benchmark is out of your hands. Three things are not.
First, compare. Once the new determinations are live, put your current plan up against the reference price and against the best market offers in your network. The government comparison service Energy Made Easy is the neutral starting point, and our guide to the practical moves that actually cut your power bill walks through the rest. Switching plans is usually the fastest saving available, and it costs nothing but a few minutes.
Second, shift your usage. If you are on a time-of-use tariff, running the dishwasher, washing machine and pool pump in the cheaper window rather than the peak can take real money off the bill without changing what you use overall. Check which tariff you are on before you assume the times.
Third, reduce your exposure to the grid altogether. Rooftop solar cuts the share of power you buy at grid prices, and a home battery lets you store cheap or self-generated electricity for the expensive evening peak. Whether the sums work depends on your usage, your roof and the upfront cost, so it pays to run the numbers rather than the marketing. Our explainer on whether solar is worth it in Australia covers the payback question, and if you want to model the storage side specifically, you can see whether a home battery beats the price rises for your own household.
None of these moves the benchmark. All of them change how much of it you actually pay.
The bottom line
Regulated default electricity prices reset on 1 July 2026, with the AER setting the Default Market Offer for NSW, SA and south-east Queensland and the Essential Services Commission setting the Victorian Default Offer. The change varies by state and network, so ignore the national headline and read your own regulator’s final determination, then check your own bill. To cut what you pay, compare against the reference price, shift usage to cheaper times, and weigh up solar and storage. For the bigger picture on why these prices move from year to year, our overview of electricity prices in Australia in 2026 puts this reset in context.
This article is general information only and is not personal financial, tax or legal advice. Figures and benchmarks were last checked in June 2026 and can change, including at the 1 July reset. Check the official source, the AER, the Essential Services Commission or your own retailer, before acting on anything here.