Power prices just fell — so why is your winter bill higher?
Default electricity offers dropped on 1 July in most states, yet winter bills are landing hundreds of dollars up. Three things changed at once — here's what they are and what's worth doing about each.
If you’ve seen the headlines saying electricity prices fell on 1 July and then opened a winter bill that’s the biggest you can remember, you’re not imagining things. Both are true at once. Three things changed, and only one of them was in the headlines.
1. The $75-a-quarter credit is gone
Through 2024 and 2025, the federal Energy Bill Relief Fund quietly put a $75 credit on your bill every quarter. It ended on 31 December 2025.
That’s why bills feel so much worse this year: the ABS measured out-of-pocket electricity prices up 37% in the year to February 2026 — but stripping out the vanished rebate, the underlying price rise was only about 5%. Most of the jump isn’t a price rise at all. It’s the training wheels coming off.
This winter’s bill is the first winter bill most households have paid at full price since 2023. There’s no universal replacement — though targeted state concessions for pensioners, concession-card holders and low-income households are still running, so if that might be you, check your state’s scheme.
2. It’s winter
The winter quarter is the most expensive one on the east coast. A typical temperate-zone home uses about 20% more electricity in the winter quarter than the yearly average, and in cool zones (Melbourne, Canberra, Hobart) it’s around 34% more — almost all of it heating. A high June–August bill isn’t automatically a sign something’s wrong; it’s a sign it’s July.
3. The price cut you read about may not apply to your plan
The “prices fell” story is the regulator’s Default Market Offer — the standing offer you’re on only if you never chose a plan. From 1 July, those default prices fell 3–5% in NSW and 7.2% in south-east Queensland (SA rose slightly).
But most households are on market offers, which the DMO doesn’t set. Your retailer decides what happens to your plan — and plenty of market offers went up this July. The only way to know is to look.
What’s actually worth doing
Check your rate (10 minutes, free). Compare your plan at energymadeeasy.gov.au — the government’s free comparison site, every plan, no commissions. If you haven’t compared in a year, this is the fastest money in this article.
Ask about the new “Solar Sharer” offer. Also new from 1 July: retailers in NSW, south-east Queensland and SA must offer an opt-in plan with three hours of free electricity in the middle of the day (smart meter required). If you can shift the dishwasher, washing machine, pool pump or EV charging into that window — or pre-heat the house on a timer — it’s worth a look. If your usage is all evening, it probably isn’t. Run the numbers before switching, because the other rates on these plans can be higher.
Then fix the usage side. A better rate helps once; using less helps on every bill after it. In winter the big three are heating (each 1°C lower on the thermostat cuts heating energy roughly 10%), hot water, and the second fridge running in the garage. That’s what the guide is for — every fix priced, with honest paybacks, including the ones we tell you to skip.
Price-change figures: AER Default Market Offer 2026–27 final determination. Rebate and inflation figures: energy.gov.au and ABS monthly CPI (Feb 2026). Seasonal usage shares: AER residential benchmarks. The heating-degree figure uses the sourced assumptions from the Decode Energy Home Energy Saving Guide (AU 2026 edition).