New South Wales has three electricity distribution networks, each serving a different part of the state. Which network your address is on determines the retailers available to you, the network charges on your bill, and the Default Market Offer (DMO) reference price that discounts are calculated against.
The AER released the DMO 8 determination for 2026-27 on 26 May 2026, with new prices taking effect on 1 July 2026. For the first time, prices are falling: flat rate residential prices dropped between 3.4% and 5.0% across all three NSW networks, driven by lower wholesale electricity costs and increased renewable generation. Essential Energy customers in regional NSW continue to pay significantly more than households in Sydney and the coast, but the gap is narrowing. The AER also introduced a new Solar Sharer Offer that provides three hours of free daytime electricity for households with smart meters, regardless of whether they have solar panels.
Current reference prices in NSW (2026-27 DMO 8)
The Default Market Offer is the maximum price a retailer can charge on a standing offer. It also serves as the benchmark that advertised discounts are measured against. When a retailer says "25% off", they mean 25% off the DMO reference price for your network area. These prices dropped across all NSW networks from 1 July 2026.
| Network | Area covered | DMO annual reference | DMO daily equiv. |
|---|---|---|---|
| Ausgrid | Sydney, Central Coast, Hunter | $1,744/year | $4.78/day |
| Endeavour Energy | Western Sydney, Blue Mountains, Illawarra | $1,929/year | $5.28/day |
| Essential Energy | Regional and rural NSW | $2,358/year | $6.46/day |
These figures are based on a representative household using approximately 3,900 to 4,600 kWh per year, depending on the network. They represent a drop of $85 to $111 per year compared to the 2025-26 DMO. Your actual costs will vary based on your usage, tariff type, and whether you have solar.
Source: Australian Energy Regulator, Default Market Offer Prices 2026-27 (DMO 8), published 26 May 2026.
Our take on electricity in NSW
If you are on the Essential Energy network in regional NSW, you are paying roughly 35% more than someone in inner Sydney on Ausgrid, for the same electricity from the same grid. The network charges are higher because of the cost of maintaining infrastructure across a much larger, less dense area. This is not something you can fix by switching retailers, but it makes comparing plans more important, because the savings from finding a competitive offer are proportionally larger.
If you are on a standing offer and have never compared, you are almost certainly overpaying. The gap between the DMO and the cheapest market offers in the Ausgrid area is typically $250 to $350 per year. The most competitive offers sit roughly 20% below the DMO reference price. Even if you switched once a couple of years ago, it is worth checking again. Retailers frequently change their pricing, and the plan that was cheapest in 2024 may not be cheapest today.
For households with solar panels, pay close attention to the feed-in tariff. The difference between the lowest and highest feed-in rates in NSW can be 5 to 8 cents per kWh, which on a 6kW system exporting 10 kWh per day adds up to $180 to $290 per year.
Check what plans are available at your address
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Compare plans nowUnderstanding your distribution network
Ausgrid (Sydney, Central Coast, Hunter)
Ausgrid is the largest distribution network in NSW, serving around 1.8 million customers across Sydney, the Central Coast, and the Hunter Valley. If you live anywhere from Sutherland in the south to Newcastle in the north, and east of Parramatta, you are most likely on the Ausgrid network.
Ausgrid customers generally have the most retailer choice and the lowest reference prices of the three NSW networks. Major retailers on this network include AGL, Origin Energy, EnergyAustralia, Red Energy, Alinta Energy, 1st Energy, and several smaller providers.
Endeavour Energy (Western Sydney, Blue Mountains, Illawarra)
Endeavour Energy covers Western Sydney from Parramatta west, the Blue Mountains, Wollongong, and the Southern Highlands. This includes growing areas like Penrith, Liverpool, Campbelltown, and the new developments around Badgerys Creek and the Western Sydney Airport corridor.
DMO reference prices on the Endeavour network are about 10% higher than Ausgrid, reflecting higher network costs in a geographically larger service area. Retailer competition is similar to Ausgrid, with most major providers available.
Essential Energy (Regional and rural NSW)
Essential Energy serves regional, rural, and remote NSW, from Broken Hill to Byron Bay. This is the largest network by geography but the smallest by customer count. If you are outside the greater Sydney, Central Coast, Hunter, and Illawarra areas, you are on Essential Energy.
Essential Energy customers pay the highest electricity prices in NSW, with the DMO reference price roughly 35% above Ausgrid. Retailer choice is more limited in some remote areas, but most major providers now serve Essential Energy addresses in regional centres.
Average electricity bills by city in NSW
Your network, not your city, is what actually determines your reference price. Sydney and Newcastle are both on Ausgrid and pay the same rates; Wollongong and Western Sydney are both on Endeavour Energy. Here is how the main population centres line up.
| City / area | Network | DMO reference (annual) | Typical cheapest market offer |
|---|---|---|---|
| Sydney (metro) | Ausgrid | $1,744/year | $1,310 to $1,480/year |
| Newcastle / Hunter | Ausgrid | $1,744/year | $1,310 to $1,480/year |
| Wollongong / Illawarra | Endeavour Energy | $1,929/year | $1,450 to $1,640/year |
| Western Sydney / Parramatta | Endeavour Energy | $1,929/year | $1,450 to $1,640/year |
| Dubbo, Tamworth, Wagga Wagga (regional) | Essential Energy | $2,358/year | $1,770 to $2,000/year |
Figures are DMO 8 (2026-27) reference prices for a representative household; your actual bill depends on your usage, tariff, and whether you have solar. Enter your postcode below for retailer options specific to your address.
Sydney and Newcastle households are on the cheapest of the three NSW networks, so the DMO reference price ($1,744/year) is the lowest starting point in the state, though this network also has the most retailers competing for your business, which typically pushes the best market offers well below that reference.
Wollongong and Western Sydney sit on Endeavour Energy, roughly 11% above Ausgrid on the reference price. Retailer choice is similar to Ausgrid, so the gap is purely down to network costs in a larger, less dense service area.
Regional cities like Dubbo, Tamworth, and Wagga Wagga are on Essential Energy, the most expensive of the three NSW networks. Retailer choice can be more limited outside the largest regional centres, but competitive plans are still available; this is the network where comparing pays off the most in dollar terms.
What would you pay? Real scenarios for NSW households
Couple in a Sydney apartment (Ausgrid network, 3,000 kWh/year, no solar)
On the DMO standing offer: approximately $1,340 per year. On the cheapest available market offer: approximately $1,000 to $1,100 per year. Potential saving: $240 to $340 per year by switching from a standing offer to a competitive market plan.
Family of four in Western Sydney (Endeavour Energy, 5,500 kWh/year, ducted air con, no solar)
On the DMO standing offer: approximately $2,700 per year. On the cheapest market offer: approximately $2,000 to $2,250 per year. Potential saving: $450 to $700 per year. This household would benefit most from a time-of-use tariff if they can shift dishwasher and washing machine usage to off-peak hours.
Retiree in regional NSW (Essential Energy, 4,000 kWh/year, 5kW solar system)
On the DMO standing offer: approximately $2,100 per year before solar credits. With a competitive market offer and a feed-in tariff of 8 to 10 cents per kWh, annual costs drop to approximately $1,200 to $1,500. The retailer with the best feed-in rate can be worth $200+ more per year than one with the lowest feed-in, even if the usage rates are similar.
The new Solar Sharer Offer
From 1 July 2026, the AER introduced the Solar Sharer Offer (SSO) as part of DMO 8. This is an opt-in electricity plan that gives households three hours of free electricity during the middle of the day (11am to 2pm in NSW), up to 24 kWh per day.
The Solar Sharer Offer is available to any household with a smart meter. You do not need solar panels. All retailers with more than 1,000 customers must offer it as a standing offer option alongside flat rate and time-of-use tariffs.
The catch: usage rates outside the free window are slightly higher (1 to 4 cents per kWh more) than the standard time-of-use DMO. So the SSO works best if you can shift meaningful usage into the 11am to 2pm window, for example running your washing machine, dishwasher, or pool pump during those hours. If your household is empty during the day, the SSO may not save you anything.
Our take on the Solar Sharer Offer
If you work from home or are retired and home during the day, the SSO is worth trying. Three hours of free power is genuinely valuable if you can time your high-draw appliances into that window. For households that are out all day and use most power in the evening, stick with a flat rate or standard time-of-use plan.
Tariff types available in NSW
Flat rate (single rate): One price per kWh regardless of when you use electricity. The simplest option and the safest choice if you use most of your power during peak hours (afternoons and evenings). Most NSW plans default to a flat rate.
Time of use (TOU): Different rates for peak, shoulder, and off-peak periods. In NSW, peak is typically 2pm to 8pm on weekdays in summer and 5pm to 9pm in winter. Off-peak is 10pm to 7am daily. TOU can save money if you can shift usage to off-peak hours, but it can cost more if your household is busiest during peak times. See our smart meters and TOU pricing guide for the full breakdown.
Demand tariff: Charges based on your highest usage in any 30-minute window during peak periods, rather than total peak consumption. Available on some networks for customers with smart meters. Suits households that can spread their usage rather than running multiple high-draw appliances at once.
Controlled load: A separate, cheaper tariff for appliances on a dedicated circuit, typically electric hot water systems or underfloor heating. If your home has a controlled load circuit, make sure you are on a plan that offers a competitive controlled load rate; the difference can be $100+ per year.
Tips for comparing electricity plans in NSW
Ignore the percentage discount. A 25% discount off a high reference price can still be more expensive than a flat-rate plan from a different retailer with no discount. Always compare the estimated annual cost in dollars, not the percentage.
Check the conditional discounts. Some plans require you to pay on time, pay by direct debit, or receive bills by email to get the advertised rate. If you miss a payment, the rate jumps to the higher unconditional price. Make sure you can meet the conditions reliably.
Look at the daily supply charge. The supply charge is a fixed daily fee you pay regardless of how much electricity you use, typically 80 cents to $1.40 per day. A plan with low usage rates but a high supply charge can cost more overall for low-usage households.
Factor in solar if you have it. Compare both the usage rate and the feed-in tariff. A plan with slightly higher usage rates but a significantly better feed-in rate can be cheaper overall for solar households.
Review at least annually. Prices change every July when the DMO resets. Set a reminder to compare plans each July or August when the new pricing takes effect.