National

Renewables 'showing dividends' as power prices fall

May 26, 2026

REGIONAL STOCK — Some households are expected to save more than $200 a year in their power bills with the offer. -AAP Image

Power prices in eastern states are forecast to go down by 10 per cent, driven by an uptick in renewable energy and batteries.

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The final Default Market Offer, which sets out the maximum amount retailers can charge on plans, shows price reductions for households and even bigger drops for small businesses.

Some households are expected to save more than $200 a year in their power bills when the offer comes into effect in July.

Household standing offer time-of-use prices will fall by up to 10.7 per cent across South Australia, NSW and Queensland's southeast.

Small business standing offer time-of-use prices are set to fall by up to 20.9 per cent.

The Australian Energy Regulator sets the default market offer as a benchmark for residential and small business electricity bills in NSW, southeast Queensland and South Australia.

Energy Minister Chris Bowen said an uptick in renewables had paid off for households and businesses.

"Renewable energy is the cheapest form of energy, it's the fastest to deploy. It's more reliable. Coal breaks down every day, and when coal breaks down, bills go up," he told reporters in Canberra on Tuesday.

"There's more work to do to keep this transition well under way. There are plenty of challenges internationally and domestically, but the plan that we put in place is showing dividends for the Australian people."

Mr Bowen said the energy grid being made up of 50 per cent renewable energy, along with more than 400,000 home batteries being installed since July, had played a significant role in the falling power prices.

"I expect the continued influence of renewable energy," he said.

"The key turning difference is we're now storing that renewable energy for the night time, reducing reliance on coal and gas, (and) enabling some of the closures of coal-fired power stations that are already in the system."

The federal government said the 2026/27 determination is the first under a reformed framework designed to bolster protections for customers and deliver a better deal.

Labor has also strengthened consumer protections.

From July 1, plan benefits will have to last the whole contract, price increases during fixed contracts will be stopped, unfair fees and dodgy discounts will be banned, and price increases will be limited to once a year.