Energy bills for households and small businesses are set to fall by up to 10 per cent across parts of eastern Australia, under the Australian Energy Regulator's latest Default Market Offer (DMO).

The DMO, which caps the maximum price retailers can charge on standing offers, outlines modest reductions for households and more significant savings for small businesses in NSW, southeast Queensland and South Australia.

For residential customers on flat-rate plans, prices in NSW will drop between 3.4 per cent ($66) and 5.0 per cent ($137), while households in southeast Queensland will see a 7.2 per cent reduction ($155) compared with last year.

Customers on time-of-use tariffs with smart meters will also benefit, with standing offer prices falling across all three regions.

In South Australia, household bills are expected to decrease by 1.1 per cent ($25), while small businesses will see a substantial 20.9 per cent ($673) cut. In southeast Queensland, bills will fall by 10.7 per cent ($229) for households and 14 per cent ($601) for small businesses.

In NSW, household reductions will range from 3.7 per cent ($72) to 7.7 per cent ($211), while small business customers will see decreases between 9.4 per cent ($449) and 20.9 per cent ($1303).

Overall, time-of-use standing offer prices for households are set to decline by up to 10.7 per cent, while small business rates could fall by as much as 20.9 per cent.

The federal government said the 2026–27 determination is the first under a revised pricing framework aimed at strengthening consumer protections and delivering better value.

Energy Minister Chris Bowen attributed the lower prices to increased renewable energy supply and the growing role of battery storage, which are easing reliance on coal and gas during peak periods.

'We've got the best sun and wind in the world, and we're using our own renewable resources to shield the grid from global energy volatility and bring down power bills,' Bowen said.

Bowen said Australia has now reached around 50 per cent renewable energy generation, alongside a surge in battery installations, including more than 400,000 home batteries added since mid-2025 under federal incentives. 

'It's no coincidence that reaching 50 per cent renewables and the rollout of home batteries are helping reduce prices for everyone,' he said.   

'When we store more renewable energy and use it to flatten the nighttime peak, that is the system working.' 

He acknowledged prices remain elevated, noting outages at coal plants can still drive costs higher, but said the latest cuts show progress.

New consumer protections will also take effect from July 1. 

These include requiring discounts to apply for the full contract period, banning price rises during fixed-term deals, limiting increases to once a year, and eliminating unfair fees and misleading offers.

Australian households are still facing significantly higher power bills, despite the latest price reductions.

Australian Bureau of Statistics (ABS) data shows electricity costs rose 25.4 per cent in the 12 months to March 2026. 

The increase largely reflects the expiry of Commonwealth and state government rebates that had previously offset bills.

Stripping out the impact of those rebates, electricity prices rose a more modest 3.9 per cent over the year, driven by retailers’ annual price resets in July 2025.

The Coalition says that households remain about $1,000 worse off than promised ahead of the 2022 election, when Labor first came to office.