Electricity bills in 2026-27 look different from last year for most households, and not only because of price changes. The federal Energy Bill Relief Fund, which took up to $150 off household power bills in the second half of 2025, ended on 31 December 2025. At the same time, regulated default electricity prices for 2026-27 fell for most households in New South Wales and South East Queensland, rose slightly for flat rate customers in South Australia, and were reset in Victoria from 1 July 2026. For anyone planning a car loan, the useful question is simple: what does your power bill actually cost you now, and how does that show up when a lender checks your budget?
Quick answer: what changed for electricity bills in 2026-27
- The Energy Bill Relief Fund ended on 31 December 2025. Its final round gave households up to $150, paid as two $75 quarterly credits between 1 July and the end of 2025, according to energy.gov.au.
- The Australian Bureau of Statistics (ABS) says electricity costs rose 13.2% in the 12 months to August 2026, largely because those Commonwealth rebates ended.
- The Australian Energy Regulator (AER) set lower Default Market Offer (DMO) prices for most households from 1 July 2026, with a small rise for flat rate customers in South Australia.
- Victoria's Essential Services Commission set new Victorian Default Offer tariffs that apply from 1 July 2026 to 30 June 2027.
- For car loan applicants, the bill you actually pay is what appears on your bank statements, so a rebate that has ended no longer lowers your expenses.
Why your power bill went up even though prices fell
Two things happened at once, and they pull in opposite directions. Regulated prices came down in most regions, but the rebate that had been reducing what households paid has gone.
The ABS monthly Consumer Price Index for August 2026, released on 30 September, shows electricity up 13.2% over the year, up from a 6.1% rise in the 12 months to July. The ABS said the August rise was largely due to the ending of Commonwealth electricity rebates, with the timing of rebate payments in 2025 driving the jump from July. Electricity was one of the main contributors to the 5.7% rise in the housing group, and headline inflation reached 4.0%. We covered the wider inflation picture in what August 2026 inflation means for your car loan budget.
In other words, the CPI measures what households pay after rebates. When a $75 quarterly credit stops appearing on the bill, the out of pocket cost rises even if the underlying tariff is lower.
The 2026-27 Default Market Offer by region
The DMO is the price cap for standing offer electricity plans in New South Wales, South East Queensland and South Australia, and it also acts as a reference price for comparing market offers. The AER released its final 2026-27 DMO on 26 May 2026, with prices taking effect from 1 July. For residential customers, the changes compared with 2025-26 were:
- New South Wales, flat rate: down 3.4% ($66) to 5.0% ($137), depending on the distribution zone.
- New South Wales, time of use: down 3.7% ($72) to 7.7% ($211).
- South East Queensland, flat rate: down 7.2% ($155).
- South East Queensland, time of use: down 10.7% ($229).
- South Australia, flat rate: up 1.4% ($33).
- South Australia, time of use: down 1.1% ($25).
The AER said the reductions mainly reflect easing wholesale energy costs, including lower contract prices, less spot price volatility and more wind and battery output during evening peaks. These figures apply to the DMO itself. If you are on a market offer, your retailer sets your price, and it may be higher or lower than the DMO.
Victoria's default offer for 2026-27
Victoria has its own regulated price. The Essential Services Commission released its final decision on Victorian Default Offer prices on 25 May 2026, and the tariffs apply from 1 July 2026 to 30 June 2027. Prices depend on your distribution zone. For a domestic flat rate tariff, the daily supply charge ranges from $1.1912 in the United Energy zone to $1.3805 in the Powercor zone.
That supply charge is a cost you pay before using a single kilowatt hour. As a simple illustration, $1.1912 a day works out to about $435 a year, and $1.3805 a day to about $504 a year. The commission notes the default offer will not necessarily be the lowest price available to you.
A worked example: lower prices, no rebate
Here is an illustration of how the two changes can net out. It is not a forecast of any particular bill.
Take a New South Wales household on a flat rate standing offer in a distribution zone where the DMO fell by $66. In 2025-26 that household was also eligible for the $150 Energy Bill Relief Fund credit. In 2026-27 there is no Commonwealth rebate. On those numbers, the household pays about $84 more over the year than in 2025-26 ($150 rebate lost, less the $66 price fall), even though the regulated price went down. A South Australian flat rate customer, whose DMO rose by $33, would be about $183 worse off on the same logic.
Your own result depends on your plan, your usage and whether you receive state concessions. The point is that last year's bills may understate what power costs you now.
How electricity bills affect a car loan application
Lenders have to make reasonable inquiries about your financial situation and check that a loan is not unsuitable for you. In practice, many lenders compare the living expenses you declare with what your bank statements show, and with a benchmark for a household like yours, then use whichever is more conservative. We explain that process in household expenses and your loan application and in what lenders check on bank statements.
Electricity bills feed into that check in a few ways:
- They are regular, visible debits. Utility payments are usually easy to spot on a statement, so a higher bill flows straight into your recorded expenses.
- Quarterly bills are lumpy. A large quarterly payment can make one month look expensive. If your statements cover a winter or summer quarter, it helps to know your typical annual cost so you can explain it.
- Declared expenses should match reality. If you budget from a 2025 bill that still had a $75 credit on it, your declared utilities may come in lower than what your statements show now.
A higher power bill does not by itself stop an application. It does leave less surplus for a new repayment, which can affect how much a lender is prepared to offer. Our guide to rising living costs and car loan serviceability covers how that surplus is assessed.
Practical steps before you apply
These are general steps that may help you get a clearer picture of your budget. They are not advice about your situation.
- Check which plan you are on. Your bill or retailer can tell you whether you are on a standing offer or a market offer. The AER says retailers must tell customers at least once every 100 days if they could offer them a better plan.
- Compare plans. The AER points consumers to its free comparison site, Energy Made Easy, and suggests looking for retailers offering discounts off the DMO or plans that better suit your circumstances.
- Look at concessions. Energy.gov.au notes that households with a concession card or receiving certain government payments could be eligible for existing state and territory rebate schemes.
- Budget from current bills. Use bills from 2026, after the Commonwealth rebate ended, when you estimate your utilities.
- Run the numbers. Our car loan calculator shows how repayments change with the loan amount and term, so you can see what fits alongside your bills.
Electric cars, charging and the Solar Sharer Offer
For 2026-27, retailers in the DMO regions must for the first time offer a default Solar Sharer Offer. The AER describes it as an opt-in plan for customers with smart meters that provides three hours of free electricity in the middle of the day, with its price regulated using the same annual price as the time of use DMO in each distribution zone. The AER specifically mentions electric vehicle charging as one of the loads households might shift into the middle of the day.
If you are weighing up an electric car, home charging costs belong in your running cost estimate alongside insurance, registration and tyres. Whether a midday plan suits you depends on when the car is actually at home. Our articles on electric cars and your car loan and rising car running costs cover the wider cost picture.
What to watch next
The ABS releases the September 2026 Consumer Price Index on 28 October 2026, which will show whether electricity costs keep rising faster than other prices. The AER says the DMO remains fixed for 12 months, and the commission sets Victorian Default Offer prices each year, so regulated default prices are not expected to change again until the next annual decisions.
If you are ready to compare options, you can see current car loan rates, browse lender profiles or start with our car loans page. This article is general information only and does not take your objectives, financial situation or needs into account.
