Reliable Renewables Plan putting downward pressure on prices

Dept of Climate Change, Energy, Environment & Water

Today’s release of the Default Market Offer (DMO) shows the retail energy bill benchmark stabilising and trending downwards after the biggest global energy crisis in 50 years.

The independent Australian Energy Regulator (AER) sets the DMO as a benchmark for residential and small business electricity bills in NSW, southeast QLD and SA, and today’s decision reflects the lower wholesale prices we’ve seen including big boosts to renewables.

The DMO shows price reductions in most jurisdictions – with nearly 9% reduction for some small businesses and up to 6.4% reduction for some households.

The Victorian Default Offer (VDO), set by Victoria’s Essential Services Commission also out today, and shows an average reduction of 5.7% for residential customers for the VDO, and 6.9% for small business customers.

While the price trend is encouraging, the Albanese Government knows families and businesses have still been doing it tough.

That’s why we urgently capped skyrocketing coal and gas prices during the global energy crisis and are providing a $300 bill rebate to every household and a $325 bill rebate to around one million small business customers.

This is in stark contrast to the Coalition’s approach.

Not only did the Coalition change the law to hide a 20% energy price hike before the election, they disgracefully voted against $3 billion in energy bill relief for millions of Australians – including pensioners, low-income families, veterans and more.

The Albanese Government’s energy plan is the only one supported by experts to deliver the clean, cheap, reliable and resilient energy system that Australians deserve.

It’s supported by independent advice from the CSIRO and the Australian Energy Market Operator (AEMO) that the lowest-cost plan for a reliable energy grid is Australia’s world-leading renewables like solar and wind, firmed up with batteries, pumped hydro, flexible gas and transmission.

We’re getting on with the job delivering that plan, with

  • A 25% increase in renewable generation in the National Electricity Market just since we came to office in 2022.
  • Record investment in batteries and large-scale energy storage, and over 330,000 rooftop solar installations last year alone.
  • 280 GW of proposed generation and storage projects in the development pipeline, 4.5 times today’s National Electricity Market capacity.

Quotes attributable to Chris Bowen, Minister for Climate Change and Energy:

“Today’s figures show a welcome downward trend for prices but we know there’s more to do – which is why we’re delivering our Reliable Renewables plan and providing direct energy relief for every household energy bill.

“Our Reliable Renewables plan backed up with storage, flexible gas and transmission, is the only plan backed by experts to deliver the lowest cost energy where and when we need it to power households and industries.

“Peter Dutton’s risky reactors are up to eight times more expensive than firmed renewables, and won’t generate any power in Australia before 2040 – it’s a plan to leave Australian households and businesses in the dark.”

Download the DMO and associated factsheet.

Residential DMO (Non-controlled load)

State

Distribution

network

2024-25

DMO price

2023-24

DMO

Change from 2023

(% Y-o-Y)

NSWAusgrid$1,810$1,827-0.9% (-4.7%, real)
Endeavour$2,209$2,228-0.9% (-4.7%, real)
Essential$2,499$2,527-1.1% (-4.9% real)
SE QldEnergex$2,052$1,9694.2% (0.4% real)
SASAPN$2,216$2,279-2.8% (-6.6% real)

Residential DMO (with Controlled load)

State

Distribution

network

2024-25

DMO price

2023-24

DMO

Change from 2023

(% Y-o-Y)

NSWAusgrid$2,495$2,562-2.6% (-6.4%, real)
Endeavour$2,787$2,977-6.4% (-10.2%, real)
Essential$2,918$2,977-2% (-5.8% real)
SE QldEnergex$2,400$2,3631.6% (-2.2% real)
SASAPN$2,746$2,787-1.5% (-5.3% real)

Small business DMO

State

Distribution

network

2024-25

DMO price

2023-24

DMO

Change from 2023

(% Y-o-Y)

NSWAusgrid$4,597$4,999-8% (-11.8%, real)
Endeavour$4,407$4,598-4.2% (-8%, real)
Essential$5,718$5,761-0.7% (-4.5% real)
SE QldEnergex$4,246$4,2021% (-2.8% real)
SASAPN$5,337$5,849-8.8% (-12.6% real)

/Public Release. View in full here.