Now that July 2026 has passed, energy price changes have taken effect. Both the Default Market Offer (DMO) and Victorian Default Offer (VDO) may have adjusted, causing energy retailers to update their tariffs. This can potentially save over 700,000 Australian households and businesses hundreds or even thousands of dollars annually.
For consumers in Victoria, New South Wales, Queensland, and South Australia, your energy provider will send updated information regarding your electricity and gas plans. Now is the perfect time to review offers from different energy retailers to find the plan that maximizes your savings. If you are unsure about your energy plan, then chances are you are on a standing offer contract from your energy provider.
Why Do Energy Rates Change Every July?
Every year in July, energy costs are reviewed. According to AER Chair Claire Savage, the Default Market Offer “acts as a safety net,” ensuring Australians have access to essential services at a base cost. Energy providers then adjust their rates and tariff plans accordingly.
If you are unsure about your plan, you might be on a standing offer contract. Standing offers adjust prices every six months, while market offers may vary before your next bill. A standing offer represents the maximum capped energy rate. By comparing market offers, households and small businesses can save significantly on their energy bills.
How Energy Costs Are Determined
Energy costs travel from the plant to your home through four key stages:
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Wholesale cost: The price of purchasing electricity and gas from producers or generators.
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Network cost: The expenses of wires, poles, and pipes, including maintenance and metering charged by distributors.
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Compliance and other costs: Costs incurred by energy providers for government policies like the Renewable Energy Target.
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Retail cost: The amount charged by your energy provider for the service.
Fluctuations in these areas directly affect your energy rates and potential savings.
Understanding Your Energy Bill
Your energy bill includes usage charges (for the electricity or gas you consume) and supply charges (for the infrastructure that delivers the energy to your home or business). The competitive energy market means that better prices and deals are often available if you actively compare plans.
For example, households can save around $116 annually, while small businesses may save about $441, simply by reviewing their energy options.
Finding the Best Energy Deals
Select and Switch can help you, by working on your behalf to bring you great deals and offers from leading retailers of energy services such as electricity and gas, as well as telecommunications, cyber security, fuel cards, solar, and more. Select and Switch will help to clear the confusion of finding a better offer, by understanding your usage and needs, and then providing you the best solution from our panel of partners.
Conclusion
The energy price changes in July 2026 present a valuable opportunity for households and businesses to reduce their annual bills. By understanding how energy costs are structured and comparing available plans, consumers can take control of their energy expenses and increase their savings.
Act now to review your energy plan and make informed decisions that benefit your wallet and household budget.
