The Australian Energy Regulator (AER) released a draft decision on its “default market offer” (DMO) today, which revealed price caps for customers on standing retail plans would lift from July 1.
Under the offer, residents in New South Wales, south-east Queensland and South Australia would notice annual bill increases of between $114 and $200.
However, those in Victoria would not be hit quite as hard.
The Essential Services Commission (ESC) regulates electricity prices in Victoria, and the draft Victorian default offer (VDO) could result in either a drop of $19 or a jump as high as $68 per year.
According to research published by Canstar, residents in some states should brace for bigger blows to their hip pocket than others.
Those living in NSW on a standard plan may be looking at the biggest increase on their annual energy bills in the 2025/2026 financial year.
Canstar notes that Ausgrid customers in NSW could pay up to $1989 a year, a jump of $159.
Endeavour Energy customers may be forced to pay another $174 per year, which would lift the annual power bill to $2357.
Essential Energy customers could be hit with the biggest increase of $200, increasing their bill to $2713 for the year.
South-east Queenslanders on a standard plan could cop an annual increase of $119 on their Energex bills.
This would bring the annual bill amount for the region up from $2066 to $2185.
Households in South Australia would be slugged the smallest increase under the AER, Canstar said.
But it would still bring the annual energy bill amount up by $114 to $2344.
Lucky Victorians will be spared the biggest price hikes.
Some may even be paying less if the draft decisions are implemented.
Across the five energy providers in the state, the biggest increase would be an extra $68 for those using CitiPower, which would bring the annual bill to $1456.
Powercor customers in Victoria would be looking at another $19 per year, resulting in an annual bill of $1680.
United Energy and Jemena will pass on similar modest price hikes of $15 ($1569 annual bill) and $16 ($1680 annual bill) per year respectively.
The average AusNet Services customer though will enjoy a slight bill decrease of about 1 per cent annually, cutting bills by $19 and bringing them to $1883.
“This is not welcome news amidst a cost of living crisis,” said Canstar Blue data insights director Sally Tindall.
“Today’s draft prices released from the AER are a disappointing blow for households in New South Wales, south-east Queensland and South Australia.
“Customers on standing offers on the Essential Energy network in NSW could see their bills rise by up to $200 over the next financial year if this draft determination from the AER is finalised as is.”
Tindall said the draft prices could actually rise after the consultation phase.
Analysis by Canstar shows 67 per cent of the final prices have been higher than the proposed draft price over the past six years.
The regulators will now consult before finalising prices on May 24 for Victoria and May 26 for NSW, south-east Queensland and South Australia.
The new benchmark prices would be implemented from 1 July 2025.