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The Guardian World1 min read
Power bills to fall by up to 10% in July as renewables and batteries soar across Australia
TL;DR
Energy bills for households and small businesses in eastern Australia will decrease by up to 10% starting in July, driven by record levels of renewables and batteries in the power grid.
Key points
- Energy bills will fall by up to 10% in July.
- Household prices will decrease by up to 10.7%.
- Small business prices will drop by up to 20.9%.
- Reductions apply to eastern states: South Australia, NSW, Queensland.
- The Australian Energy Regulator sets the default market offer.
Energy bills for households and small businesses will fall by up to 10% per cent from July across parts of the eastern states, as a new industry survey shows record levels of renewables and batteries in the power grid.
The final default market offer, which sets out the maximum amount retailers can charge on plans, shows price reductions for households and even bigger drops for small businesses.
Household standing offer time-of-use prices will fall by up to 10.7% across South Australia, New South Wales and Queensland’s south-east.
Small business standing offer time-of-use prices are set to fall by up to 20.9%.
The Australian Energy Regulator sets the default market offer as a benchmark for residential and small business electricity bills in NSW, south-east Queensland and South Australia.
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The government said the 2026/27 determination is the first under a reformed framework designed to bolster protections for customers and deliver a better deal.
The determination comes a day after Victoria’s own default offer for 2026/27 was released, which ruled an average 5% cut for households, taking $84 off their annual electricity bill.
The energy minister, Chris Bowen, said there were three key reasons behind the fall in prices.
These include more renewable energy available and batteries lifting pressure off coal and gas that is used at peak times at night time.
“We’ve got the best sun and wind in the world, and we’re using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills,” Bowen said.
“We know energy bills are still too high – because when coal breaks down, your bill goes up – but this news shows steady progress.”
The government has also implemented new consumer rule changes to add extra help for customers.
From 1 July, the changes mean plan benefits will have to last the whole contract, price increases during fixed contracts will be stopped, unfair fees and dodgy discounts will be banned and price increases will be limited to once a year.
The news comes as the renewable industry’s annual snapshot found Australia is now a top-three global player in batteries and renewable energy met nearly half of the nation’s power in 2025.
But the Clean Energy Council warned that progress could stall as investment in new wind and solar plummeted.
Q&A
What percentage will energy bills decrease for households in Australia in July?
Energy bills for households will decrease by up to 10.7% in July.
How much will small business energy bills drop in Australia?
Small business energy bills are set to fall by up to 20.9% in July.
Which regions in Australia will see a reduction in energy bills?
The reductions will affect households and small businesses in South Australia, New South Wales, and south-east Queensland.
What is the role of the Australian Energy Regulator in setting energy prices?
The Australian Energy Regulator sets the default market offer, which serves as a benchmark for electricity bills for residential and small business customers.
