What we report on
Each year, we are required to report to the NSW Minister for Energy on the performance and competitiveness of the NSW retail electricity market. The matters we are required to report on are specified in the National Energy Retail Law (NSW). This year, the Minister also requested that we report on new energy products and services, including virtual power plants (VPP) and demand response programs.
Overview of Final Report
The NSW retail electricity market remains highly concentrated. The 3 largest retailers supply 74% of small customers. While some new retailers have entered, most focus on niche areas, and fewer are seeking new customers compared to previous years.
Wholesale electricity costs fell by 7–11% in 2024–25. However, these savings were mostly offset by higher network charges and increased retail operating costs. Retailer profit margins have also rebounded to their highest level since 2017–18.
Customers who regularly review and switch plans pay less for electricity. Those who stay on older plans pay a “loyalty tax” - up to around $297 more for households and around $700 more for small businesses.
Demand tariff plans can be more expensive, especially for households without solar. Over 2024‑25, for a typical load profile on a demand tariff plan:
- without solar, the average bill could be up to $300 higher
- with solar, the average bill could be between up to $200 higher.
The uptake of solar and batteries continues to grow. Battery payback periods are getting shorter, especially with government rebates. VPP customers benefit from lower bills, and competition in the VPP market is strong.
New rules from 2026 aim to make switching easier and strengthen consumer protections.
We reported 16 key findings
We made 16 key findings about competition and consumer outcomes in the NSW retail electricity market.