Default Market Offer Highlights Renewable Energy Need

The Albanese Government is urging households to check they are on the best energy deal available, as today's Default Market Offer (DMO) underscores the urgency of getting cheaper reliable renewables into the grid.

The independent Australian Energy Regulator (AER) sets the DMO as a benchmark for residential and small business electricity bills in NSW, southeast Queensland and South Australia, while the Victorian Default Offer is set by the Essential Services Commission. It can be found here.

Importantly, while the DMO is the benchmark for standard offers from retailers, the AER has recorded falls in the median market offers. The most competitive market offers are now between 19% and 25% lower than the DMO.

Households should check that they're on the cheapest energy plan available, with recent ACCC data showing some 80% of households could be paying less on a different deal. The Government's energy.gov.au website and the AER's Energy Made Easy website can help billpayers find the cheapest plans.

We know that every increase will still be tough for consumers and small businesses. That's why we have acted - with two rounds of energy bill relief and acting to cap gas and energy prices. Peter Dutton has opposed every dollar of this relief.

The AER says key factors increasing prices for consumers include unreliable coal generation and low solar and wind output.

In its most recent high price report, the AER found coal plant outages and transmission constraints were responsible for 23 high price events in the wholesale market in the last quarter of 2024 alone.

The Coalition left Australians with an energy policy mess. It is a matter of record that the Morrison Government changed the law to hide a 20% energy price hike before the 2022 election.

Now Peter Dutton is pushing a $600 billion nuclear scheme, that will be funded by cuts to critical services, will take too long and push up bills. The Coalition's own modelling confirms his plan is to undo hard-won energy reform, and instead cap affordable renewables to extend expensive, unreliable coal plants.

We know there is more to do when it comes to fixing the energy system.

The Government is delivering overdue reform to how the energy market operates, including making it easier for people to switch to cheaper deals and retailers under our One Click Switch reforms.

In three short years we have made significant progress in delivering the affordable, reliable energy system our country needs for the future.

In 2024, Australia produced more renewable electricity than ever before, with a record 46% of the electricity in the grid renewable in the last quarter of 2024.

And we're investing in storage, including batteries - so we can store affordable renewable energy for when and where we need it.

The Independent Australian Energy Market Commission recently released their latest Residential Electricity Price Trends report projecting residential prices will fall by 13 per cent over the next ten years if investment in renewables and related infrastructure continues consistent with Labor's plan.

ATTRIBUTABLE TO MINISTER FOR CLIMATE CHANGE AND ENERGY CHRIS BOWEN:

"While today's news is mixed it does show energy retailers are responding to competition - with energy plans that are 25% cheaper than the DMO it's worth shopping around.

"It's clear energy bills for Australians remain too high, and we're providing help for people doing it tough as we deliver longer term reform.

"We also know 80% of households aren't on the cheapest energy plan they could be which is why we're making it easier for households to find and switch to better plans. Check the Energy Made Easy website or energy.gov.au for the cheapest plans in your area.

"The Albanese Government's plan is the only one which is providing bill relief now and supported by experts to deliver a clean, cheap, reliable and resilient energy system into the future.

"Peter Dutton has opposed every single cost of living relief measure, and his $600 billion nuclear scheme, which will be funded by cuts to critical services, only promises to extend the energy pain Australians feel."

STATE BY STATE WEBSITES TO FIND THE BEST DEAL