CANBERRA, May 26 (Xinhua) -- Australia's energy regulator said on Tuesday that electricity prices will fall for most households and small businesses on regulated default plans from July 1, reflecting easing costs across the power sector.
The Australian Energy Regulator (AER) said its final Default Market Offer (DMO) for 2026-27 would cut residential electricity prices by between 3.4 percent and 5 percent in the state of New South Wales and by 7.2 percent in the southeast state of Queensland, while the state of South Australia would see a slight 1.4 percent increase.
Small businesses will see reductions across all three regions, said an AER statement, adding the DMO is a regulated safety net and benchmark price for households and small businesses on standing electricity plans.
Although the Northern Territory, the states of Western Australia and Tasmania, and regional parts of the state of Queensland are subject to separate pricing systems, the DMO remains a key benchmark for broader electricity prices.
Minister for Climate Change and Energy Chris Bowen said energy price declines coincide with Australia's main grids surpassing 50 percent renewable generation in late 2025, "pushing wholesale energy prices down which is beginning to flow through to bills."
Expanded renewables and storage are "reducing reliance on unreliable coal and putting downward pressure on bills," Bowen said.
AER Chair Clare Savage said lower wholesale energy costs, reduced spot price volatility and increased output from renewable sources, including wind and batteries, drove the declines.
Wholesale energy costs had eased "despite uncertainty created by conflict in the Middle East," Savage said.
The regulator also announced a new "solar sharer offer," requiring retailers to provide opt-in plans with three hours of free electricity during midday for customers with smart meters to make better use of Australia's abundant solar generation. ■