Who sets electricity and gas prices? 

Retailers in NSW set their own retail gas and electricity prices. They set prices to cover the costs of providing energy services, which include wholesale costs, the costs of transporting energy through the networks, their retail costs and margin, and any environmental costs. 

Retailers can change the prices of “market offers” at any time (subject to the terms of your contract), as long as they provide the required notice (usually 5 days) (see Rule 46 in Part 2 of the National Electricity Retail Rules).

In NSW, you can choose the retailer and the electricity and gas plans you sign up to. See more information about managing your electricity account. 

Competition should keep energy prices as low as possible because if retailers increase their price above their costs, they will lose customers to other suppliers.  Over the longer term, this competitive pressure provides an incentive for retailers to find more efficient ways of supplying electricity. 

What is the role of the Australian Energy Regulator (AER)?

If you have not entered into a plan or “market offer” for electricity, then there is a limit on how much your retailer can charge (for a given level of consumption). This is called the “default market offer” or “DMO” and is set by the Australian Energy Regulator (AER). The DMO applies to around 10% of customers in NSW. 

The DMO decreased on 1 July 2024 by around 1% in NSW. We expect that there may be offers in the market that remain 10% to 20% lower than the DMO. 

To help you compare prices, retailers must compare their market offers to the default market offer. 

There is no DMO for gas.  

See more information about the difference between standing and market offers.

Are there any other price limits that apply?

If you live in an embedded network, there may be maximum prices depending on the service, the service provider and the type of embedded network. 

From 25 September 2024, if you live in a residential land lease community, you cannot be charged more than the median market offer for your area for your electricity, as determined by IPART.

IPART does not have a role in relation to setting maximum prices for gas for land lease communities.

For other types of embedded networks, the NSW Government is currently considering IPART’s recommendations about how maximum prices should be set. 

What can I do if I am unhappy about electricity and gas prices?

To ensure you are receiving the best deal possible, you should shop around on the Australian Government price comparison website Energy Made Easy. You may find cheaper prices than you are currently paying. 

You should contact your retailer for help if have trouble paying your energy bills due to hardship. Retailers are required to have hardship policies for their residential customers.

We also encourage you find out if you are eligible and apply for rebates using the NSW Government Find an energy rebate website. You can book an appointment with a specialist to check if you are eligible for assistance.

The Australian and NSW governments are also providing eligible consumers with assistance through the National Energy Bill Relief. Households will receive $300 and small businesses will receive $325 to help with the cost of their energy bills in the 2024-25 financial year. 

The NSW Government also provides advice on small changes you can make to help reduce your energy consumption. 

Does IPART have a role?

As outlined above, IPART determines the median market electricity offer for each distribution district, which caps the electricity prices for customers living in residential land lease communities. 

IPART does not set energy prices for other customers, but we do have several roles related to energy prices:

  • We monitor the prices and competition in the electricity and gas markets and submit our reports to the Minister for Energy by the end of November each year.
  • Each year we publish a “solar feed-in tariff” guide each year about what you can expect your retailer to pay you for your solar energy.
  • We review the Renewable Energy Sector Board Plan to make sure it protects the financial interests of consumers. This is one element of the NSW Electricity Infrastructure Roadmap. 

Please see the answers to our frequently asked questions.