Electricity prices to change from 1 July 2024

Key points

  • The Default Market Offer (DMO) is set by the Australian Energy Regulator and implemented by electricity retailers from 1 July each year.
  • Customers on the DMO in the Endeavour Energy network are expected to see a modest 0.9% price decrease – or $19 less on the average annual household bill – in the coming financial year.
  • The Australian Energy Regulator has approved moderate increases in the Endeavour Energy portion of electricity bills for FY25.

With electricity prices changing on 1 July, Endeavour Energy is urging customers to check they are on the most competitive electricity deal in the market.

Set by the Australian Energy Regulator (AER) and implemented by energy retailers on 1 July each year, the Default Market Offer (DMO) is the maximum amount energy retailers can charge customers who remain on default contracts. It acts as a cap on the price all electricity retailers can charge residential and small business customers for the year ahead.

The best way for customers to find the cheapest energy deal is to check out the AER’s Energy Made Easy website: www.energymadeeasy.gov.au. Energy Made Easy is a user-friendly tool to help consumers compare their current plan with other retail energy plans and make the switch to a better plan that suits their needs.

Endeavour Energy costs

Endeavour Energy is one of three electricity distribution networks in NSW, responsible for supplying safe, sustainable and affordable electricity for 2.7 million people living and working in Sydney’s Greater West, the Blue Mountains, Southern Highlands, the Illawarra and South Coast of NSW.

Endeavour Energy is a regulated business, which means its prices and plans for future investments, expenditure, service levels and tariffs and prices are set every five years after significant consultation with customers and approval by the Australia Energy Regulator, and revenue is capped.

The cost to customers of building, operating and maintaining the network is included in bills from electricity retailers. On average, Endeavour Energy’s costs represent 27% of an average residential bill and 24% of an average small business bill under the DMO. Endeavour Energy does not bill customers directly. The AER has approved moderate increases in the Endeavour Energy portion of customers' electricity bills for FY2025. Average residential customers will pay $29 and small business customers $48 per year more in the network charges component of their bill over the coming financial year. Endeavour Energy recognises that its customers are facing difficult times with increasing cost-of-living pressures. This pricing reflects Endeavour Energy’s concerted effort to keep its part of customers' bills stable while making targeted investments to modernise the grid to deliver the energy services our customers have told us they value.

Endeavour Energy’s network costs are offset by reductions in the retail and generation costs in household and small business electricity bills in the coming year.

Price Explainer

Importantly, when the AER refers to network costs in the DMO this includes Endeavour Energy’s costs bundled with transmission (TransGrid) costs and government schemes, such as the Energy Infrastructure Fund which funds the delivery of the NSW Government’s 20-year Electricity Roadmap of planning and building renewable energy zones, with transmission, generation, storage and firming infrastructure. The total contribution for NSW consumers for the Energy Infrastructure Fund in 2024-5 has increased to $341.24 million, of which Endeavour Energy customers will fund 36 per cent, determined by electricity usage. These costs are recouped by Endeavour Energy and passed directly through to customers through their retail bill.

New network tariffs

The AER has approved changes to Endeavour Energy tariffs from 1 July, however it is up to electricity retailers whether they choose to pass these tariffs onto customers. The new tariffs are designed to ensure the costs of building, operating and maintaining the network are shared equitably among customers within the Endeavour Energy network area.

When packaged into retailer price offerings, the tariffs give customers greater choice and control in how they use the electricity network to generate, store and share their energy and better manage their energy consumption and costs. They also ensure that customers who cannot afford home solar systems and batteries are not unfairly charged for the costs required to support customers exporting to the grid.

As a regulated business, Endeavour Energy does not make more money by changing the way its tariffs are structured, as it operates under a revenue cap set by the AER. The tariffs are charged to the electricity retailer, which decides whether to pass them onto customers.

For residential and small business customers, there will be two new network tariffs offered to retailers from 1 July 2024:

  1. A time of use tariff for all customers. Under this tariff the Endeavour Energy network is free of charge for residential and small business customers for the use of the distribution network between 10am and 2pm every day of the week to “soak up” excess solar energy. This is the cheapest distribution network tariff we’ve ever offered. We are encouraging retailers to pass on this cost saving to all their customers.
  2. A two-way tariff to encourage customers with large solar systems to consume their self-generated electricity during the middle of the day (high solar generation) and export to the grid in the later afternoon at evening (peak demand). Up to 290,000 solar customers in the Endeavour Energy network could benefit from this tariff if offered by their retailer. These customers have the choice to opt-out at any time and return to the time of use tariff.

For more information on Endeavour Energy’s pricing, customers should visit our website

Endeavour Energy – 2024–25 pricing proposal | Australian Energy Regulator (AER)

Read Energy Networks Australia’s media statement here:

Energy Networks Australia response to 2024-25 final DMO decision | Energy Networks Australia

For media information, contact: Endeavour Energy media: 0409 664 608

Published on May 23rd 2024