Electricity Price Changes, July 2026: What’s Different in Your State

From 1 July 2026, electricity prices changed across New South Wales, Southeast Queensland, and South Australia, with Victoria to follow on 1 August 2026. For many households, the July reset brought a welcome price cut. But not everywhere moved in the same direction.

The big headline is this: NSW, Southeast Queensland and Victoria saw benchmark electricity prices fall, while South Australia was the exception, with residential flat-rate standing offer prices increasing. These changes came through the annual Default Market Offer 2026-27 for NSW, South Australia and Southeast Queensland, and the Victorian Default Offer July 2026 for Victoria. [aer.gov.au], [esc.vic.gov.au]

If you are searching for electricity price changes July 2026, electricity prices 1 July 2026 by state, or simply asking is electricity going up or down 2026, here is what changed in plain English.

The Short Answer on Energy Prices

Most east coast benchmark electricity prices went down from 1 July 2026, which is the opposite of the broader price pressure many customers saw last year. Residential flat-rate Default Market Offer prices fell by 3.4% to 5.0% in NSW, 7.2% in Southeast Queensland, while Victoria’s average domestic Victorian Default Offer fell by 5%. South Australia is the standout exception, with residential flat-rate Default Market Offer prices rising by 1.4%. [linkedin.com], [esc.vic.gov.au]

What Reset on 1 July 2026, and Why It Happens Every Year

Every year, electricity regulators reset benchmark prices for customers who are on default or standing for electricity offers.

For NSW, South Australia and Southeast Queensland, the Australian Energy Regulator sets the Default Market Offer, often called the DMO. The AER released its final determination for the Default Market Offer 2026-27 on 26 May 2026, with the new prices applying from 1 July 2026. [aer.gov.au], [dcceew.gov.au]

For Victoria, the Essential Services Commission sets out the Victorian Default Offer, or VDO. The ESC set the Victorian Default Offer prices for 2026-27 to apply from 1 July 2026 to 30 June 2027. [esc.vic.gov.au], [esc.vic.gov.au]

These default prices do two important things:

• They act as a safety net for customers on standing offers.
• They provide a reference price so customers can compare market offers more easily. [dcceew.gov.au], [esc.vic.gov.au]

However, the DMO and VDO are not always the exact price you pay. Most customers are on market offers, not standing offers. Market offers are set by electricity retailers and may include discounts, different tariff structures, or special conditions.

That means the July reset is useful, but it should be treated as a benchmark, not a guarantee. If you want cheap electricity rates, the better move is to compare your actual energy plan against available energy market offers.

Electricity Price Changes by State, July 2026

The table below summarizes the key new electricity rates for 1 July changes by state and region.

NSW Electricity Prices July 2026

For NSW electricity prices July 2026, the main result is a reduction across residential flat-rate standing offers. The AER’s final DMO figures show residential flat-rate prices decreasing by 3.4% to 5.0%, depending on the distribution area. [linkedin.com], [aer.gov.au]

NSW small business customers on flat-rate standing offers also received larger percentage reductions, with prices falling by 9.0% to 11.3%. [linkedin.com], [aer.gov.au]

Queensland Electricity Price Change 2026

For the Queensland electricity price change in 2026, the DMO applies to Southeast Queensland, not regional Queensland. In Southeast Queensland, residential flat-rate DMO prices fell by 7.2%, while flat-rate small business DMO prices fell by 10.4%. [linkedin.com], [dcceew.gov.au]

Regional Queensland is generally covered by separate pricing arrangements, so regional QLD customers should check out the relevant Queensland pricing information or their retailer notice before assuming the Southeast Queensland change applies.

South Australia Electricity Price Rise 2026

The most newsworthy result is the South Australia electricity price rise 2026. Residential flat-rate DMO prices in South Australia increased by 1.4%, making SA the only DMO region in this comparison where household flat-rate standing offer prices moved up rather than down. [linkedin.com], [aer.gov.au]

Interestingly, South Australian small business flat-rate DMO prices fell by 6.8%, so the story is different for business customers compared with households. [linkedin.com], [aer.gov.au]

Victorian Default Offer July 2026

For the Victorian Default Offer July 2026, the ESC confirmed average default offer prices are lower in 2026-27 compared with 2025-26. Average annual bills under the VDO are 5% lower for domestic customers and 6% lower for small business customers. [esc.vic.gov.au], [esc.vic.gov.au]

The ESC said the reduction was driven by lower environmental, wholesale, and network costs. [esc.vic.gov.au]

Why NSW, QLD and VIC Went Down but SA Went Up?

The 2026 price reset was mainly shaped by changes in the cost stack used to calculate benchmark electricity prices.

For the DMO, the AER uses a cost build-up approach that considers wholesale electricity, network costs, environmental costs, retail costs, and retail margin. [aer.gov.au]

For Victoria, the ESC said the 2026-27 VDO reduction was driven by lower environmental, wholesale, and network costs. [esc.vic.gov.au]

Put simply, several major cost inputs moved in the right direction this year, especially wholesale electricity and environmental scheme costs. That helped pull benchmark prices down in NSW, Southeast Queensland and Victoria.

However, network charges remain a major part of electricity bills. These are the costs of maintaining and operating the poles, wires and infrastructure that deliver power to homes and businesses. Because network costs differ by area, customers in different distribution zones can see different outcomes even within the same state.

That is why two households in NSW, for example, may both receive a benchmark reduction, but not necessarily the same percentage reduction or dollar saving.

Why South Australia Is Different?

South Australia is the main exception because its residential flat-rate DMO moved up while other household benchmark prices moved down. Under the AER’s final DMO figures, South Australian residential flat-rate standing offer prices increased by 1.4%, while South Australian time-of-use residential DMO prices fell by 1.1%. [linkedin.com], [aer.gov.au]

That difference matters. It shows that the answer to electricity going up or down 2026 depends not only on your state, but also on your tariff type.

For a deeper breakdown of what drives electricity prices over time, read:/blog/why-are-electricity-prices-rising-in-Australia

Does This Automatically Change My Energy Bill?

Only if you are on a standing offer.

The DMO and VDO directly apply to customers on standing offer plans or default offers. These are the customers who have not actively selected a market contract, have let a previous contract expire, or have specifically requested a default offer.

Most households and businesses are on market offers instead. If you are on a market offer, your retailer sets your price. Your rates may still move in the same direction as the benchmark, but the timing and size of the change depend on your retailer and your plan.

In Victoria, for example, VDO prices changed from 1 July 2026, but market offers do not have to change on the exact same date because energy providers set market offer pricing separately. So, energy retailers set 1 August 2026 as the date they release updated market offers and the energy price changes.

To check your actual new rate, do not rely only on state averages. Instead:

• Open your latest electricity bill.
• Check the usage rate and daily supply charge.
• Log into your retailer app or customer portal.
• Look for price variation notices sent by email or post.
• Compare energy plans – check your current plan against other market offers using the Select and Switch free online comparison tool, or request one of our energy savings experts to do the comparing for you by calling 1800 959 969.

This is especially important if your usage has changed, if you have moved to time-of-use pricing, or if you run a small business with higher daytime electricity demand.

What To Do Now?

If You Are on a Standing Offer

If you are on a standing offer, the new default price should apply automatically. But that does not mean you are at the best electricity rates available.

Default prices are designed as a consumer safeguard, not necessarily the cheapest deal in the market. The Victorian ESC specifically notes that the default offer will not necessarily be the lowest price available. [esc.vic.gov.au]

That means standing offer customers may still be leaving money on the table, even after the July 2026 reduction.

If You Are on a Market Offer

If you are on a market offer, check whether your discount is still being calculated against the new reference price, not the old one.

This matters because a plan that looked competitive last year may no longer be the best option after the July reset. Retailers can change usage rates, supply charges, and discounts, so the headline discount is not enough. You need to look at the total estimated annual cost.

Compare Your Options

The July reset is one of the best times of year to run an electricity company comparison.

Whether you are looking to compare electricity rates for your home or compare business electricity for your company, it is worth checking whether your current retailer is still competitive. After changes to market such as these, both residential and small business customers are best to compare their energy rate to see if they can save on their energy costs.

You can use the Select & Switch comparison tool to compare electricity plans available in your area and see if there is a better offer for your usage profile.

For a practical step-by-step guide, read:/blog/how-to-switch-electricity-providers

And if your bill still jumped despite the state-average decrease, read:/blog/why-is-my-electricity-bill-so-high

FAQs

Did electricity prices go up or down on 1 July 2026?

In most major east coast benchmark markets, electricity prices went down from 1 July 2026. Residential flat-rate DMO prices fell by 3.4% to 5.0% in NSW and 7.2% in Southeast Queensland, while Victoria’s average domestic VDO fell by 5%. South Australia was the exception, with residential flat-rate DMO prices rising by 1.4%.

Why did South Australia’s electricity price go up when other states went down?

South Australia’s residential flat-rate DMO increased because its underlying cost stack produced a different outcome from NSW and Southeast Queensland. The AER’s final DMO figures show South Australian residential flat-rate prices rising 1.4%, even though South Australian time-of-use residential prices and small business prices decreased.

When will my electricity bill reflect the new price?

If you are on a standing offer, the new DMO or VDO prices generally apply from 1 July 2026. If you are on a market offer, your retailer may adjust your rates on its own schedule, so check out your latest bill, app, portal or price change notice.

Is the Default Market Offer the price I actually pay?

Not always. The Default Market Offer is a regulated safety-net price for standing offer customers in NSW, South Australia and Southeast Queensland. It also acts as a reference price for comparing market offers. If you are on a market offer, your retailer sets your actual rate.

Final Takeaway

The electricity price changes July 2026 are good news for many customers, but not for everyone. NSW, Southeast Queensland and Victoria saw benchmark reductions, while South Australia’s residential flat-rate DMO increased.

The most important point is this: your state average is not your bill.

Your actual electricity cost depends on your energy retailer, tariff, usage pattern, distribution zone, and whether you are on a standing offer or market offer. If you want cheap electricity rates, now is the right time to compare electricity rates. Review your current plan and check whether there is a better deal available.