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New Default Offer pricing has been announced for FY 2026. Here's everything you need to know.
From July 1, 2025, new Default Offer pricing will take effect across Australia, affecting both the Default Market Offer (DMO) set by the Australian Energy Regulator (AER) and the Victorian Default Offer (VDO) determined by the Essential Services Commission (ESC).
Richard Foxworthy
Although only a minority of energy consumers are on default offers—approximately 8% in DMO regions and 12% of households in Victoria—these offers serve as benchmarks for the broader electricity market.
Changes in default offer prices often influence market offers, affecting a larger segment of consumers, and impact the apparent pricing for Market Offers since Market Offers are quoted as being x% above or below the Default Offer price.
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There are two kinds of Default Offer:
Default Market Offer (DMO): Set by the Australian Energy Regulator (AER), the DMO applies to New South Wales (NSW), South East Queensland (SE QLD), and South Australia (SA). It caps the maximum price retailers can charge residential and small business customers on standing offers and serves as a reference point for market offers.
Victorian Default Offer (VDO): Established by the Essential Services Commission (ESC) for Victoria, the VDO ensures that consumers who haven't engaged in the market receive a fair and reasonable price for electricity.esc.vic.gov.au+1esc.vic.gov.au+1
Australian Energy Regulator (DMO):
From July 1, 2025, the AER's final determination indicates:
Essential Services Commission (VDO):
In Victoria, the ESC's final decision for 2025–26 includes:
Got opinions about Default Offer prices? Have your say in the comments, but please first read and understand our Community Guidelines.
Richard Foxworthy
The market for renewable energy certificates in Australia is currently in freefall. Prices are dropping like a stone, making the cost of being green much cheaper for your retailer. Make sure it gets cheaper for you, too.
The Australian Energy Market Commission (AEMC) is officially starting its Accelerating Smart Meter Deployment (ASMD) reforms. If you don’t already have a smart meter, you will by the end of 2030.
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