Energy Prices Set To Increase AGAIN

This piece was written and provided by FTMA Supporting Partner, Choice Energy.

From July 1, 2025, for businesses in Queensland, New South Wales, and South Australia, and August 1, 2025, for those in Victoria and Tasmania, new energy Default Market Offers (DMO) and Victorian Default Offers (VDO) will come into effect. This is reflective of a volatile energy market (see graph below) and is coupled with a 3.5% increase to the National Minimum Wage and all Modern Award minimum wage rates, effective 1 July 2025.

What’s Changing and Why It Matters:

The Australian Energy Regulator (AER) and Victoria’s Essential Services Commission (ESC) have finalised their default offer determinations for the 2025-26 financial year. Factors like wholesale energy costs, network charges, and evolving market dynamics drive these changes.

• New South Wales (NSW), South Australia (SA) & South East Queensland (SEQ): In NSW, DMO increases range from 9% to 8.5% depending on your distribution zone. South Australian businesses could face increases of around 3.5%, while South East Queensland will see more modest increases of approximately 0.8%.
• Victoria (VIC) & Tasmania (TAS): Victorian small businesses on the VDO are expected to see an average annual bill increase of around 3%. In Tasmania, regulated electricity prices for small businesses are projected to increase by an average of 50% from July 1, 2025, with changes to tariff structures.

Despite what may be seen as small changes, customers on competitive offers now are the ones that could be hit the hardest. We have seen rates increase as much as 30% off the back of these changes (see below).

The worst thing you can do? Not questioning these charges and not seeing what else is out there.

Take control of your energy future today. Dozens of FTMA members have benefited from this – saving over $2.5 million on energy costs.

Contact Alex Townsend at Choice Energy for a no-obligation energy assessment of your FY26 energy options and a comprehensive Network Tariff Review. You can contact him via email – alex.townsend@choiceenergy.com.au or 0435 080 646.