Australian businesses can compare electricity and gas rates by using government reference prices, regulator-backed comparison tools, and by negotiating directly with retailers. Understanding the Default Market Offer (DMO), Victorian Default Offer (VDO), and new retail rules is essential for securing the best deal in 2025.
Quick summary
Australian businesses should compare energy plans from a wide variety of retailers, and use reference prices and direct negotiation to compare electricity and gas rates. Regulatory reforms in 2025–26 make it easier to access fairer deals and avoid excessive charges. Understanding how to use the DMO, VDO, and new retailer obligations is key to maximising savings.
Key takeaways
- Reference prices like the DMO and VDO provide a benchmark for comparing energy offers.
- Comparison sites are the most reliable way to compare all available business energy plans.
- Retailers must now show how their offers compare to the reference price, making comparisons easier.
- Negotiating directly with your current retailer can often unlock better rates or discounts.
- New rules from July 2026 limit price increases and ban excessive fees for business customers.
- Switching to a plan below the reference price can deliver significant savings.
What is the Default Market Offer (DMO) and how does it help businesses compare rates?
The Default Market Offer (DMO) is a regulated price cap set annually by the Australian Energy Regulator (AER) for standing offer electricity contracts in NSW, South East Queensland, and South Australia. It acts as a reference price, allowing businesses to compare market offers against a government-set benchmark. Most retailers offer deals below the DMO, so using it as a comparison point helps businesses identify better-value plans. The DMO for 2025–26 increased by up to 8.5% for small businesses, reflecting higher wholesale and network costs.
What new rules affect business energy contracts in 2025–26?
From 1 July 2026, new rules from the Australian Energy Market Commission (AEMC) will prevent retailers from increasing prices more than once a year, ban excessive fees, and require retailers to offer their best available deal to all customers, including businesses. These reforms are designed to make energy contracts fairer and more transparent, and to ensure businesses are not penalised for loyalty or financial hardship.
How do reference prices and comparison percentages work?
Retailers must display how their offers compare to the reference price (DMO or VDO) as a percentage. A plan advertised as “8% below the reference price” is cheaper than one at “3% below.” Businesses should look for the largest percentage discount below the reference price, but also check for conditional discounts, contract terms, and any additional fees. The reference price is updated annually on 1 July.
What steps should businesses take to lock in a better energy deal?
- Gather recent energy bills and usage data.
- Visit individual energy retailer websites.
- Compare plans by estimated annual cost and percentage below the reference price.
- Contact your current retailer to ask for a better deal or to match a competitor’s offer.
- Check for eligibility for business concessions or rebates.
- Review contract terms carefully, including price change frequency and any exit fees.
- Switch to the best available plan and set a reminder to review your energy deal annually
Comparing business electricity and gas offers in 2025
FAQs
What is the Default Market Offer (DMO) and how does it affect business energy bills?
The DMO is a regulated price cap set by the AER for standing offer electricity contracts in NSW, South East Queensland, and South Australia. It acts as a reference price, helping businesses compare market offers and avoid paying more than necessary. Most retailers offer plans below the DMO, so comparing against it can help businesses save.
How can businesses compare gas rates as well as electricity?
Businesses can comparison sites to compare gas offers. Upload a recent bill to see all available gas plans in your area. Look for plans with the largest discount below the reference price and check for any business-specific rebates or incentives.
What are the new protections for business energy customers in 2025–26?
From July 2026, retailers cannot increase prices more than once a year, must offer their best available deal, and are banned from charging excessive fees. These rules are designed to make energy contracts fairer and ensure businesses are not penalised for loyalty or hardship.
How often should businesses review their energy contracts?
It's generally a good idea for businesses to periodically check their energy contracts, particularly when they receive a price change notification or their circumstances change. A reviews allows you to confirm your current contract terms remain suitable and meet current business needs, without necessarily changing providers.
Are there risks in switching energy retailers?
Switching can deliver savings, but businesses should check contract terms for exit fees, minimum contract periods, and any loss of business-specific concessions. Always confirm the new plan’s terms before switching.
How do conditional discounts work on business energy plans?
Conditional discounts are extra savings offered if you meet certain conditions, such as paying on time or by direct debit. These discounts must be shown in comparison to the reference price, but businesses should check the conditions to ensure they can consistently meet them.
Can businesses access government rebates or concessions?
Some states offer business energy rebates or concessions. Check with your retailer or the relevant state government website to see if your business is eligible for any support.
What should businesses do if they are struggling to pay energy bills?
Contact your retailer as soon as possible. Retailers are required to assist customers experiencing financial hardship, and new rules strengthen these protections from 2026. You may also be eligible for government support or payment plans.
References
AER: Default Market Offer 2025–26 (2025)
ACCC: Electricity prices and plans (2025)
AEMC: New rules for energy retailers (2025)
Climate Council: Why your power prices are high (2025)
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