Electricity prices for Australian small businesses fell from 1 July 2026. The Australian Energy Regulator's final 2026–27 Default Market Offer (DMO), published on 26 May 2026, cut flat-rate small business prices by between 6.8% and 11.3% across the regions it covers. Wholesale prices have kept falling since. This guide sets out what changed, why, and what it means for businesses buying energy across several sites.
First published in May 2026 ahead of the 1 July changes. Updated in October 2026 with the final determination and the market since.
How much did electricity prices fall in July 2026?
The final determination sets these flat-rate small business prices for 2026–27, each for annual usage of 10,000 kWh and including GST:
- Ausgrid (NSW): $4,523, down $454 or 9.1%.
- Endeavour Energy (NSW): $4,343, down $432 or 9.0%.
- Essential Energy (NSW): $5,517, down $705 or 11.3%.
- Energex (South East Queensland): $3,849, down $445 or 10.4%.
- SA Power Networks (South Australia): $5,162, down $379 or 6.8%.
Time-of-use DMO prices for small businesses fell further, from 9.4% in the Endeavour Energy area to 20.9% in the Essential Energy area. The March draft had pointed to larger cuts in some areas; the figures above are the ones that took effect.
These are caps on standing offers. Most multi-site businesses are on negotiated market contracts, where the effect depends on how the contract is priced and when it was signed.
What is the Default Market Offer?
The DMO is the maximum price retailers can charge residential and small business customers on standing offers in New South Wales, South East Queensland and South Australia. The AER sets it each year from estimates of wholesale, network, environmental and retail costs, plus a retail margin. It is a safety net rather than a benchmark for a good deal: a business paying the DMO is on the default price, not a negotiated one.
Why did prices fall?
Wholesale costs fell. Wholesale costs make up around 30% to 41% of DMO prices, and the AER's estimate fell by 2% to 14% depending on region. It points to lower contract prices for 2026–27 and low spot price volatility, driven partly by more wind and battery output at evening peaks and less reliance on gas and hydro.
Environmental and retail costs fell. Environmental costs dropped by 30% to 35% on lower Large-scale Renewable Energy Target and Small-scale Renewable Energy Scheme costs, though they are only 2% to 3% of the price. Retailers also reported lower costs to serve, acquire and retain customers.
Network charges went the other way. They make up around 39% to 54% of DMO prices, and the network tariffs the AER approved for 2026–27 mostly increased, reflecting revenue paths, rising transmission costs, inflation and the recovery of previously under-recovered revenue. The wholesale fall was large enough to outweigh them. How those charges are set is now under review: see our guide to the AEMC's network regulation review.
What has happened since 1 July?
Wholesale prices kept falling. NEM-wide spot prices averaged $74/MWh in the June 2026 quarter, down 47% on a year earlier, and $63/MWh in the September quarter, down 27% year on year. Renewables supplied a record third-quarter share of 44.3% of generation, and grid-scale batteries set the price in almost half of all dispatch intervals, up from 18% a year earlier. AEMO Quarterly Energy Dynamics Q3 2026
A spot price and the price on a contract are not the same thing. Retailers price new offers against forward contracts and their own risk, so a softer spot market reaches quotes with a lag, and not evenly across regions or load shapes.
The forward view also depends on new load. AEMO's August 2026 Electricity Statement of Opportunities forecast that data centre consumption could triple by 2030, and rule changes on who pays for the network and generation that load needs are now under way. Our guide to data centre energy demand covers what that means for contract timing and tenor.
What should businesses do now?
Map every contract end date. A softer market helps only when you re-contract. List each site's contract end date, rate and pricing structure, and start with the contracts ending in the next 12 months.
Look at the whole bill, not the energy rate. Network charges are the largest part of many bills and they rose for 2026–27. Check whether each site is on the right network tariff for its load profile.
Check bills issued since July. A rate change part-way through a billing period can introduce errors, such as an old rate carried into the new period or a period split in the wrong place. Check recent bills against the contract and the tariff in force for each part of the period. Our invoice validation guide walks through the process.
Have tender-ready data before you need it. Validated interval consumption across every NMI sets your load shape for pricing and lets you compare offers on your own numbers. See our guide to energy procurement for large business.
How Utilified helps
UMS brings the invoices, meter data and contract terms for each site into one system, so renewal dates, network charges and billing exceptions sit in the same place. Charges on supported bills are checked against the contract and the applicable tariff, and exceptions go to your team for review. See how UMS works →