Energy Minister Chris Bowen has written to the heads of the Australian Competition and Consumer Commission (ACCC) and Australian Energy Regulator (AER) to inform them that electricity retailers were increasing daily supply charges following the Default Market Offer determination, which said prices should fall for most homes and small businesses.
In a letter to ACCC chair Gina Cass-Gottlieb and AER chair Clare Savage, Bowen wrote, “I am writing to bring your attention to recent changes in competitive retail offer pricing following the release of the Australian Energy Regulator’s (AER) Default Market Offer (DMO) 8 determination, released on 26 May 2026.
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“The AER’s determination of regulated prices shows that electricity prices will fall for most households and small businesses across all DMO jurisdictions from 1 July, with particularly significant declines for small business customers. These standing offer prices are also used as comparison prices for customers on competitive market offers.
“As recently reported by the Australian Financial Review, retailers are updating their pricing of competitive market offers ahead of 1 July which in some cases has included material increases in daily supply charges for some customers, alongside some declines in usage charges for customers depending on the retailer. These changes will particularly impact lower usage customers.
“The AER’s determination of regulated pricing for 2026-27 found that the underlying costs of procuring electricity were falling across most parts of the electricity supply chain for residential and small business customers. I would expect then that households and small businesses should be experiencing a decline in costs overall.
“I wish to raise these concerns with you and would welcome joint advice from the AER and the Australian Competition and Consumer Commission (ACCC) to inform my response to the changes in pricing structures.
“More broadly, I note that the Prohibited Conduct – Retail Pricing provision (‘the retail pricing provision’), which is section 153E of the Competition and Consumer Act 2010, requires electricity retailers to make reasonable adjustments to their prices if they experience sustained and substantial reductions in their underlying costs of procuring electricity. These costs include wholesale costs, networks costs, and environmental costs. Retail costs and margins are not included in these underlying costs of procuring electricity.”
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An AER spokesperson told the Australian Financial Review, “We are aware that some customers have raised concerns about notifications received from their energy retailer about price changes to their energy plan, as retailers are in the process of updating their prices to take effect in July.
“We are currently looking at how retailers are both structuring their energy plans and explaining prices to customers.”
