Electricity Bills to Rise from July 1 in NSW, QLD, and SA

Millions of Australian households already grappling with cost-of-living pressures are set to face higher electricity bills in the new financial year. The Australian Energy Regulator (AER) has confirmed a default market offer price hike – meaning from July 1, electricity costs will increase by up to $228 annually for some households. This significant jump (as much as ~9% in parts of New South Wales) has been described as a “bill shock” for families, though smaller rises will hit customers in South Australia and south-east Queensland.

Who Is Affected by the Power Price Hike?

The increases will impact residential and small business customers on standing offer (default) electricity plans in NSW, SA, and Southeast QLD, where prices aren’t otherwise regulated. These standing offers – covering roughly 1 in 10 households – are subject to the AER’s Default Market Offer (DMO), which serves as a safety-net cap on energy prices. In practice, the DMO is the maximum price retailers can charge by default, and it acts as a reference point for comparing electricity plans. If you’re on a default contract or haven’t switched providers recently, you will likely see an increase. For example, typical NSW households will see annual bill rises ranging from about $155 to $228 (6–9% higher, varying by network area). By contrast, southeast Queenslanders face a smaller jump ($77 or 3.7% on average), and South Australians about $71 extra (3.2%) on average.

Why Are Electricity Prices Increasing?

The AER points to several key factors driving these price hikes. Wholesale electricity costs – what retailers pay generators for power – have remained high, and network costs – the expenses of transporting electricity through poles and wires – are rising significantly. In NSW especially, unexpected outages at coal-fired power stations and heavy investments in grid upgrades (to improve reliability and security) have pushed costs higher. Retailers’ own operating costs (like customer service, billing systems, and bad debt from unpaid bills) have also increased, contributing to the overall price rise. The AER says it balanced the need to allow retailers to recover these costs with protecting consumers from unfair pricing. “No one wants to see rising prices, and we recognise this is a difficult time,” AER Chair Clare Savage noted, urging consumers to seek better deals and check for any rebates or concessions that can ease the pain.

When Do the New Rates Take Effect?

The updated default market offer rates take effect on 1 July, just as winter energy usage peaks. Retailers are required to notify customers ahead of time – so keep an eye on your inbox or mail for a notice outlining your new rates. The final approved increases in some areas ended up slightly higher than earlier draft estimates, adding further pressure on household budgets. It comes at a tough moment, and as one energy expert warned, these electricity price hikes will “knock the wind out of the sails” for many families already struggling with bills. While government energy rebates in some states (and recent federal bill relief payments) may soften the blow for eligible households, those measures are temporary. Come July, many will unfortunately feel a noticeable uptick in their quarterly bill totals.

Tips to Reduce Your Energy Costs

Even with prices rising, Australians can take steps to limit the impact on their wallets. Here are some tips and resources to consider:

• Shop Around for a Better Deal: Don’t settle for the default offer. Use the government’s free Energy Made Easy website to compare plans. Many retailers offer market deals well below the DMO rate – switching could save hundreds per year if you find a cheaper plan.

• Check for Rebates or Concessions: Investigate whether you qualify for any state or federal energy rebates, concessions, or bill relief programs. These can provide credits or discounts on your power bill, especially for pensioners, low-income households, or those using certain medical equipment.

• Improve Energy Efficiency at Home: Small changes can lower your usage. Switch off appliances at the wall when not in use, use energy-efficient LED lighting, and manage thermostat settings (each degree of heating or cooling can noticeably affect costs). Consider timing heavy appliance use (like washers or dishwashers) for off-peak periods if you have time-of-use rates.

• Seek Help if You’re Struggling: If you’re worried about paying your bill, contact your electricity retailer early. By law, providers must offer assistance to customers in financial difficulty (such as payment plans or hardship programs). Don’t hesitate to reach out for support before debts mount.

While the upcoming electricity price rise is unwelcome news, being proactive can help households minimise the shock. Make sure you’re on the best possible plan for your needs, take advantage of any available relief, and try to curb energy waste where possible. An informed and proactive approach can take some of the sting out of this year’s power bill increase, even as Australians await longer-term solutions to our energy affordability challenges.