By Zembl Energy Experts for small to commercial sized businesses

As a small business owner, staying informed about upcoming changes in electricity pricing is crucial for managing your operational costs. In Australia, the energy landscape is shifting with the release of the draft determinations for the Default Market Offer (DMO) 2025-26 and Victorian Default Offer (VDO) 2025-26. These changes could significantly impact your electricity bills, so here’s what you need to know.

The Default Market Offer (DMO) serves as a price benchmark for electricity standing offers in New South Wales, South East Queensland, and South Australia, while the Victorian Default Offer (VDO) provides a similar reference for Victorian customers. Both frameworks aim to ensure affordability while allowing electricity retailers to recover costs. These pricing policies are reviewed annually to reflect changes in wholesale and network costs.

For small business owners, the latest DMO draft indicates a potential increase in electricity prices, ranging from 4.2% to 8.2%. This is driven by increased wholesale market costs due to higher demand and low renewable energy output, along with rising network and retail costs. The consultation period for the DMO draft is open, allowing stakeholders to provide feedback before the final decision is published by May 26, 2025. Prices will be coming into effect from 1 July 2025.

In Victoria, the VDO draft forecasts an average increase of $103 in annual bills for small businesses, mainly due to higher wholesale and network costs. However, reduced environmental costs have mitigated the extent of these rises. Feedback on the VDO draft can be submitted until April 11, 2025, with the final determination due by May 24, 2025. New prices will take effect from 1 July 2025.

Despite these increases, there are steps you can take to manage your energy expenses effectively:

✔ Step 1: Check you’re not paying standing offer energy rates 

147,000 small Australian businesses are overpaying. If you are one of them, you could save big by securing more competitive rates. 

✔ Step 2: Compare energy rates to unlock significant savings

Comparing energy rates frequently with energy experts like Zembl can help you find better deals so you can save on your energy bills.

✔ Step 3: Analyse your business's energy usage patterns

Do you have peak periods? Could a time-of-use tariff be more cost-effective? Understanding your needs will help you choose a plan tailored for your business.

 

Better yet, Zembls’ team of energy experts are ready to do the legwork for you turning your energy to-do list to done. They’ll assess your current rates against what’s available in the market, securing you more competitive rates from local suppliers. 

With their obligation free energy bill comparison service, you can keep your energy costs under control and focus on what truly matters—growing your business.

As a My Business member, you can access this service at no cost. Don't let electricity price hikes catch you off guard - request your free energy bill review here or contact the team direct on 1300 957 721 to learn more, make sure to mention you're a member of My Business.