Australian Energy Regulator’s draft 2025-26 Default Market Offer prices show increases of as much as $200 a year

Opposition leader Peter Dutton has called for Energy Minister Chris Bowen to sacked over soaring electricity prices. See where bills will climb and take our poll.

Peter Dutton has called for Energy Minister Chris Bowen to be sacked over the latest energy price increase, declaring him a and “disaster” and “total failure”.

The Opposition Leader, who blames the energy price hike on “Anthony Albanese’s energy policy”, said Mr Bowen “deserves to lose his job over forcing up the electricity prices of Australians yet again”.

“We have to have a balanced and sensible energy system,” Mr Dutton said.

“And if we do that, we can bring downward pressure on energy prices.

“And as the independent analysis has pointed out of the Coalition’s plan, our plan is 44 per cent cheaper than what Labor would roll out with their renewables-only policy.

“I think it’s time for Chris Bowen to be sacked, and I think the Prime Minister should accept that Chris Bowen has been a total failure as the Energy Minister in this country.

“Chris Bowen and Anthony Albanese have presided over a broken promise of a $275 electricity cut, which was made on 97 occasions before the election, and now power bills have gone up by $1,300.

“Chris Bowen has been a disaster. He’s one of the key players in the Albanese government, and he has let Australians down, and there should be a price to pay for that.”

Peter Dutton has called for Energy Minister Chris Bowen to be sacked over the latest energy price increase. Picture: NewsWire / Glenn Campbell

$200 A YEAR: POWER BILLS TO RISE AGAIN

Benchmark electricity prices are set to rise by as much as $200 a year from July, to be $800 higher than when Anthony Albanese promised to cut power bills by $275 by increasing the supply of renewables.

On Thursday, the Australian Energy Regulator published its draft 2025-26 “default market offer” (DMO) prices for NSW, South Australia and southeast Queensland, forecasting price rises of as much as $200 a year or eight per cent in the Essential Energy distribution area covering most of regional NSW.

The price of electricity is set to rise again for Aussie households. Picture: AFP

In the Ausgrid distribution area, which covers the eastern half of Sydney, Central Coast, Hunter and Newcastle, the new DMO price is expected to rise by 8.8 per cent or $159 a year.

Meanwhile in the Endeavour Energy patch, which encompasses western Sydney, the Blue Mountains, Southern Highlands and part of the south coast, the DMO will jump by 7.8 per cent or $174 a year.

In southeast Queensland, prices in the Energy distribution zone are predicted to rise by 5.8 per cent or $119 annually.

And in South Australia, the DMO will rise by 5.1 per cent or $114 a year.

In Victoria, a separate announcement by the Essential Services Commission forecasts that prices will rise by as much as $68 a year, although there will be small falls in some areas.

The biggest increase in Victoria is in the inner city Citipower distribution zone, where costs are expected to increase by five per cent. One per cent declines are anticipated in the AusNet and Powercor network areas, which cover the eastern and western half of regional Victoria respectively.

According to the AER, the fastest rising component of bills is retail costs, surging by 20 to 41 per cent. That said, retail costs are one of the small parts of overall charges.

In NSW, one of the bigger slices of bills – network costs – are anticipated to jump by eight to 10 per cent.

Australians could pay as much as $200 a year more for power. Picture: iStock

Across NSW, Queensland and SA, wholesale energy costs are forecast to rise, by two to 10 per cent.

In its draft determination, released on Thursday, the AER said there are “general cost pressures across nearly all components of the DMO prices.

“Wholesale market and network costs, the two largest components of DMO prices, have seen increases of two per cent to 12 per cent for most customers.

“While wholesale costs have increased across all regions and customer types, network costs also increased except for some customer types in Queensland and South Australia.

“Retail costs have also increased by 20 per cent to 41 per cent,” the AER said.

The DMO is a “safety net” price – the maximum a retailer can charge a consumer who hasn’t shopped around. The DMO is also the benchmark against which other offers in the market have to be measured.

Hundreds of thousands of households are on the DMO. But this is still less than 10 per cent of the overall market.

Some DMO prices are now as much as $800 a year higher than in 2021-22.

In late 2021, Anthony Albanese promised to lower bills by $275 a year by lowering wholesale energy prices through an increased supply of renewables.

That means some households are paying more than $1000 extra compared to what Labor said it would deliver.

To partially offset bill hikes, the federal government has outlaid billions of dollars of taxpayer money on rebates.

Federal Climate Change and Energy Minister Chris Bowen said the AER had found factors increasing prices for consumers include unreliable coal generation as well as low solar and wind output.

Minister for Climate Change and Energy, Chris Bowen. hits back at critics over energy price rises. Picture: NewsWire / Jeremy Piper

Mr Bowen also said the Australian Energy Market Commission had projected residential prices will fall by 13 per cent over the next 10 years if investment in renewables and related infrastructure continues consistent with Labor’s plan.

“It’s clear energy bills for Australians remain too high, and we’re providing help for people doing it tough as we deliver longer term reform,” Mr Bowen said.

Opposition climate change and energy spokesman Ted O’Brien said Labor’s agenda was in crisis.

“Three years ago, Anthony Albanese and Chris Bowen promised cheaper power bills. Instead, they’ve delivered among some of the highest electricity prices in the world,” Mr O’Brien said.

“Power bills are skyrocketing with the government failing to deliver a single dollar of its promised $275 cut,” he added.

“Labor is struggling to keep the lights on, can’t get offshore wind projects off the ground, gas supply is on a knife edge and they can’t even deliver own their reckless emissions targets.”

Originally published as Australian Energy Regulator’s draft 2025-26 Default Market Offer prices show increases of as much as $200 a year