Every year, Australia’s energy regulators set the benchmark “default” prices that act as a safety net for electricity customers. The new benchmarks for 2026–27 are now locked in, and they take effect from 1 July 2026.

For most households, it’s good news - whilst the drop is a modest one, prices are coming down. Beyond that headline, the way electricity is priced is changing in ways that make how and when you use your power even more important. Here's what's happening and how to consider the potential impact for you.

Firstly, what are these "default" prices?

Think of the default price as a safety net. It’s a cap on what your electricity retailer can charge if you’re on a “standing offer” - the basic plan you’re placed on if you’ve never shopped around or switched energy retailers. It also gives everyone a handy reference price to compare other electricity deals against.

There are two versions of these prices (or offers), depending on where you live:

• The Default Market Offer (DMO) set by the Australian Energy Regulator (AER) covers New South Wales, South East Queensland and South Australia.
• The Victorian Default Offer (VDO) set by the Essential Services Commission (ESC) covers Victoria.
  
  

They work the same way even though they have different names and regulators. Here’s a quick view of how they compare:

What's changing on 1 July 2026?

Shift 1: Electricity prices are falling slightly (except for SA)

Across the board, default prices are falling for most households, typically by a few percent. Lower wholesale energy costs and more solar, wind and battery power in the grid have helped ease prices.

In the DMO regions, here’s how typical residential default bills are changing in each network area:

Estimated annual bills for a typical household on a flat-rate plan. Source: AER Default Market Offer 2026–27 final determination. 

The biggest drop is in South East Queensland, where bills fall by 7.2%. South Australia is the one exception for flat-rate households, with a small 1.4% rise (though South Australians on a time-of-use plan still see a reduction).

In Victoria, the picture is similar. The ESC reports the average household bill will be around 5% lower than last year. As an example, a typical Victorian household bill drops from about $1,675 to $1,591.

It's important to keep these rate drops in perspective. They are modest cuts to one part of your bill and they follow several years of rate increases. They're also benchmark prices, so given most households are actually on "market" offers, they won't see this change applied automatically. 

Shift 2: Daytime power is getting cheaper, but the evening cost still bites

As more rooftop and solar systems are connected to the grid, electricity in the middle of the day is becoming cheaper. Meanwhile, demand (and cost) continues to spike in the evening, once the sun goes down and everyone gets home. 

That gap between cheaper daytime and expensive evening power is widening and pricing is steadily moving toward time-of-use plans that reflect it. That means the real question for your bill isn't just what the rate is. It's about when you're drawing power from the grid and whether you can avoid the expensive evening peak. 

Shift 3: The regulator is introducing three hours of free electricity

For the first time in 2026–27, retailers in the DMO regions must offer a Solar Sharer Offer. This is an opt-in plan for households with a smart meter to access three hours of free electricity in the middle of the day. Households that can shift usage to this daypart or store solar across these hours to help dodge the peak evening prices.

How can Solar & Battery help?

• Solar generates your own power when it's cheapest to make, then the battery stores it so you can use the power at night when drawing from the grid is more expensive.

• A battery can also help you take advantage of the Solar Sharer Offer by storing those three free hours of electricity in the middle of the day, for use at night. 

• Rates might be reducing slightly, but a solar & battery system can help you save on electricity bills over the long term, reduce your grid reliance and offer backup power options in a blackout
  
  

Do these default price changes actually affect me?

Maybe - it depends on the type of electricity plan you're on. 

• If you're on a standing "default" offer: the new prices flow through automatically from 1 July 2026. You don't need to do anything.
• If you're on a "market" offer like most households: your rate is set by the retailer’s plan, not the default price directly. This means you won’t automatically get the reduction.

How to check in two minutes: look at a recent electricity bill or log into your retailer’s app. If it names a specific plan (something like “Saver” or “Online Plus”) you’re on a market offer. If there’s no plan name or it mentions a “standing offer” or “default offer,” you’re on the default. If you're still not sure, just call your retailer and ask.

Either way, the default price is a useful yardstick. If your current plan costs more than the new benchmark for your area, it’s worth comparing. Electricity retailers are also required to tell you at least every 100 days if they could put you on a better plan, so it pays to read those notices.

Want to see what you could save with Solar & Battery?

Zelora can recommend the right solar and battery setup for your home. Fill out our 2-minute form to see your system recommendation and estimated electricity bill savings. Or call us on 1800 ZELORA (935 672) if you'd prefer to speak with an expert.