Electricity prices are set to rise for more than 500,000 Australians from July, following an annual review by the Australian Energy Regulator. The increase, described as “not welcome news” by affected consumers, reflects ongoing pressures from high wholesale electricity costs, global energy market volatility, and the long-term shift toward renewable energy infrastructure.
The AER’s Default Market Offer determines the maximum price retailers can charge for standing offers, impacting customers in New South Wales, South Australia, and Queensland. Many of these households are already facing broader cost-of-living pressures, and the price hikes are expected to add to monthly expenses at a time when inflation is already a concern.
The move comes as Australia continues to transition toward renewable energy, a process that brings both opportunity and uncertainty for consumers. While some households with rooftop solar or flexible contracts may be less exposed, those on standing offers—often among the most vulnerable—will feel the impact most acutely.
Looking ahead, analysts and consumer advocates are urging households to review their energy plans and seek out more competitive rates where possible. Meanwhile, policymakers are under pressure to balance affordability, reliability, and environmental goals in the national energy strategy.
Context & Background
Australian households have been contending with steadily rising electricity prices for several years, driven by a combination of global gas price volatility, national energy market transitions, and domestic infrastructure pressures. The Australian Energy Regulator (AER) regularly sets default market offers for electricity, which serve as price caps for standing offers. These offers are reviewed annually, and recent projections have signalled further increases from July as wholesale costs remain high and investment in renewables infrastructure continues. The impact is felt most directly by consumers on standing offers, while those on market contracts or with solar panels may see less dramatic increases. The issue is compounded by broader cost-of-living pressures affecting many Australian families.
In This Story
Australian Energy Regulator (AER)
The Australian Energy Regulator is an independent national regulator responsible for regulating electricity networks and some aspects of gas markets in Australia. The AER sets the Default Market Offer and monitors the energy market to protect consumer interests.
New South Wales, Queensland, South Australia
Three mainland states directly impacted by AER-regulated energy price changes, home to a significant proportion of Australians on standing offers.
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