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RAA is urging the 80% of South Australians that could be on a better electricity plan[1] to review their provider now, as the Australian Energy Regulator (AER) has signalled prices are set to rise.
Released on Thursday, the AER’s draft determination for the Default Market Offer (DMO) for electricity prices in 2025-2026 proposes an increase for residential customers of between 2.5% and 8.9% compared to last year, and between 4.2% and 8.2% for businesses[2].
The DMO is considered the electricity price ‘safety net’ for residential and small business customers on standing offers and acts as a reference price for market offers in South Australia—as well as New South Wales and South East Queensland.
RAA CEO Nick Reade said while the DMO was intended to provide a baseline protection for those who don’t or can’t shop around, it’s important to remember there are better offers available.
“We’re urging South Australians to review their electricity costs and consider switching to a retailer they can trust,” he said.
“For many households, choosing an electricity retailer is a set and forget task, and we know from numerous ACCC reports that loyalty doesn’t always pay when it comes to staying with your electricity provider.
“The energy market is complex enough with standing offers, market offers and differing tariffs, so it’s not surprising that 80% of households are not on their retailer’s best offer.
“When the onus is on consumers to constantly be chasing a fair deal, it’s clear the average electricity retail plan isn’t working in the best interests of households.
“It’s one of the many reasons we launched RAA Energy last year – to give households peace of mind that they’re always getting a fair deal on their electricity without having to constantly shop around.
“Unlike some retailers, RAA doesn’t profit from the electricity you use.
“RAA Energy customers pay a monthly subscription to access electricity usage rates without the retail markup*, plus they get monthly bills and energy insights^ to help them better understand their usage, and tips on how to get their costs down,” Mr Reade said.
“It’s a fairer model and what sets us apart from the big retailers.
“Importantly, signing up takes less than five minutes online and there’s no need to speak to your current provider, we handle the transfer of your electricity account for you – it couldn’t be easier,” Mr Reade said.
According to the AER, multiple factors have contributed to rising network costs in each region, including inflation and interest rates leading to a higher rate of return.
The two largest components of DMO prices – wholesale market and network costs – have seen increases of 2% to 12% for most customers.
Average wholesale market spot prices increased across 2024, impacted by factors such as high demand, coal generator and network outages, and low solar and wind output which drove high price events that have also affected the price of wholesale electricity in 2025–26.
The draft DMO determination is now subject to public consultation and stakeholder feedback, along with updated network and wholesale costs, which will be reflected in the final decision.
A final decision on the DMO for 2025-26 will be published on 26 May, with changes to apply from 1 July.
[1] ACCC Inquiry into the National Electricity Market report – December 2024
[2] AER – Draft determination – Default market offer prices 2025–26 – 13 March 2025
*Monthly fee, T & Cs apply. RAA Energy is a trading name of the licensed energy retailer Energy Locals Pty Ltd, ACN 606 408 879.
^Monthly billing and personalised energy insight services are only available to customers with a compatible smart meter installed at the premises.