With electricity prices rising this winter, many Australians are preparing for another hit to their household budgets.
This follows the Australian Energy Regulator’s final Default Market Offer (DMO 7) determination, which was released back in May.
State-by-State Breakdown: How Much More You’ll Pay
According to Canstar data, the impact varies across metro areas:
- Sydney: +8.6%, ~+$145 rise, annual average ~$1,830
- Melbourne: +6.2%, ~+$83 rise, ~ $1,421 annually
- Brisbane: +3.7%, ~+$72 rise, ~ $2,019 per year
- Canberra: +8.5%, ~+$191 rise, ~ $2,436 annually
These increases take effect from July 1, reflecting yearly DMO adjustments.
Why Are Electricity Prices Rising This Winter?
- Wholesale market pressure: AER flagged surges in wholesale and network costs, between 2% and 12%, depending on region.
- Coal plant outages: For instance, the Yallourn coal-fired unit in Victoria is offline for maintenance, driving up reliance on costlier gas generation.
- Renewables and infrastructure costs: The big switch to green energy entails expensive grid upgrades estimated at ~$20 billion, a cost likely filtered into household bills.
What Households Must Do Now as Electricity Prices Rising This Winter?
- Watch for provider letters: New DMO rates start July 1. Retailers will notify consumers via email or letter.
- Compare rates now: Don’t wait, use sites like Energy Made Easy or Canstar Blue to check market offers ahead of time.
- Use the “reference price”: Compare this benchmark to alternative plans to spot real savings.
- Save energy at home: Simple tactics, draft-proofing, reducing peak-time use, shorter showers can help cut costs.
- Apply rebates: Federal Energy Bill Relief provides $150 total per household this year ($75 quarterly).
Energy-Saving Moves to Offset Rising Costs
With electricity prices rising this winter, applying smart strategies now can help households reduce bills while staying warm.
Upgrade to efficient heating
Swap gas stoves or older heaters for reverse‑cycle air conditioners (heat pumps). These can save over $1,300 annually in Melbourne. And for those not ready to commit to buying, renting an air conditioner can be a flexible and cost-effective way to enjoy the same energy savings without the upfront expense.
Seal drafts and boost insulation
Draught stoppers, heavy curtains, bubble-wrap on windows and better insulation cut heat loss by up to 40 %, reducing heating needs.
Use appliances wisely
Lower thermostat by 1 °C, use off‑peak tariff timers, take shorter showers, and unplug idle devices to avoid “ghost power”.
Compare and switch plans early
Check the AER’s Default Market Offer and use Energy Made Easy or Canstar Blue to find cheaper plans before July 1.
Claim rebates and rebates
Federal and state rebates support heat pump systems, insulation upgrades, and cover credit on power bills, which are applied through your state’s programs.
Summary Table
| City | % Increase | Annual Cost Rise | New Avg Bill |
| Sydney | 8.6% | +$145 | ~$1,830 |
| Melbourne | 6.2% | +$83 | ~$1,421 |
| Brisbane | 3.7% | +$72 | ~$2,019 |
| Canberra | 8.5% | +$191 | ~$2,436 |
| Adelaide | — | +$70 | ~$2,247 |
