ACOSS is calling for further government action to protect those on the lowest incomes who are struggling to pay their energy bills, following news that electricity prices will increase from 1 July 2025.
Today the Australian Energy Regulator (AER) released its final determination for the electricity default market offer (DMO) for NSW, SA and QLD, announcing increases between 0.5% and 9.7%, depending on the network area people live in.
“Today’s announcement of another increase to electricity prices is a blow for people on the lowest incomes, who are already making enormous sacrifices to afford their energy bills,” said ACOSS CEO Dr Cassandra Goldie.
“People struggling the most are going without food, medication and other essentials to try to pay their energy bills. Others are selling belongings or turning to buy now, pay later schemes.
“The Australian Energy Regulator has increased energy prices as a result of ageing and unreliable coal power stations, high gas prices and rising network costs.
“The faster we accelerate the transition to clean renewable energy and storage, the better. We must also do more now to support people struggling the most with their energy costs.
“One-off energy rebates to everyone are poorly targeted, expensive, and do not provide the permanent bill relief other solutions offer.
“To deliver on its promise of leaving no-one behind, the government must provide targeted support to those that need it the most, starting with a substantial increase to Jobseeker and related payments, providing energy debt relief, and prioritising more investment in home energy upgrades to low-income housing and for renters.”
ACOSS is calling for the Federal Government to:
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Accelerate investment in home energy upgrades, prioritising low-income and First Nations housing;
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Provide energy debt relief for those struggling the most;
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As the government is doing for home batteries subsidies, it must shift the cost of other renewable subsidies off electricity bills (SRES and Large Scale) and onto the federal budget, which will cut energy bills by an average of 7%; and
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Raise the rate of JobSeeker and related payment so people on low incomes can afford their energy bills and be lifted out of poverty.
Notes on the AER Final determination
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The DMO is a maximum price that retailers can charge electricity customers on default contracts known as standing offer contracts. It sets a benchmark for market offers by retailers. If DMO goes up, market offers usually follow.
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The AER DMO applies only to South Australia, New South Wales and Queensland. Victoria determines its own default market offer (VDO).
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DMO prices determined by the AER for residential customers from 1 July 2005 will see increase in Ausgrid NSW by 8.6% (without controlled load) and 8.3% (controlled load); Endeavour NSW 8.5% (without controlled load) and 9.7% (with controlled load), Essential NSW 9.1% (without controlled load) 9.6% (with controlled load), Queensland 3.7% (without controlled load) and 0.5% (with controlled load), and South Australia 3.2% (without controlled load) and 2.3% (with controlled load).
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Changes have occurred since the AER draft determination was released on March 13th. Prices increased further in NSW due to increases in wholesale costs and network costs, and price increases were less in South Australia and Queensland due to a reduction in wholesale costs across both states and network costs in South Australia in the period since the draft determination was made.
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Controlled loads are separately metered tariffs used for appliances such as electric hot water storage systems, pool pumps or underfloor heating.
Contact details:
Lauren Ferri: 0422 581 506
