Energy prices, discounts and eligibility conditions vary by location, retailer and usage patterns. Always check a retailer’s Energy Price Fact Sheet and plan terms before making a decision.
Published on 14/01/2026
By Pallav Verma
Energy Comparison
Energy discounts are incentives offered by electricity and gas retailers to attract or retain customers. These incentives can take different forms, such as percentage-based discounts, bill credits, or conditional benefits (for example, paying on time or signing up online).
While energy discounts can reduce bills in some cases, they don’t automatically mean lower overall costs. In 2026, understanding how discounts are applied is far more important than the size of the headline figure.
Most energy bills are made up of two main components:
An energy discount may apply to:
This means two plans advertising the same “discount” could result in very different bill outcomes, depending on how the discount is structured and how much energy you use.
In earlier years, energy retailers commonly promoted large percentage discounts. However, these discounts were often applied to higher base rates, making it difficult for consumers to compare offers fairly.
To improve transparency, regulators introduced reference pricing.
In New South Wales, South East Queensland and South Australia, electricity plans are compared against the Default Market Offer (DMO), set annually by the Australian Energy Regulator.
The DMO acts as:
Retailers now typically advertise plans as a percentage above or below the reference price, rather than using standalone discounts.
In Victoria, the benchmark price is the Victorian Default Offer (VDO), set by the Essential Services Commission.
The VDO also serves as a safety net and comparison point, with prices reviewed and updated each year.
Yes, but they may be less prominent than in the past and can vary depending on the retailer and offer structure.
Common examples include:
In many cases, retailers now focus on competitive base rates upfront, rather than large ongoing discounts.
A headline discount can be misleading if:
For example, a smaller discount on lower usage rates may result in lower overall costs than a larger discount applied to higher rates. This is why regulators and consumer advocates encourage looking beyond promotional language.
Must, read: Average Electricity Bill in Australia
Energy retailers and comparison services must comply with Australian Consumer Law, enforced by the Australian Competition and Consumer Commission.
Key principles include:
In addition, electricity retailers in DMO regions must follow the Electricity Retail Code, which sets out how prices and reference comparisons can be presented.
When comparing energy plans in 2026, discounts are just one factor. Other important considerations include:
Your actual costs will always depend on how much energy you use, when you use it, and the type of meter installed at your property.
A customer-first approach to energy comparison involves:
Identify your supply charge, usage rates and tariff type.
These documents outline rates, fees and conditions in a standardised format.
Where possible, look at estimated yearly costs rather than headline discounts.
Make sure you’re comfortable with any requirements needed to receive advertised benefits.
If you’re experiencing bill stress, retailers are required to provide information about payment assistance and hardship support.
Energy discounts can still play a role in reducing power bills, but they are no longer the centrepiece of energy pricing in Australia. In 2026, transparency, reference prices and upfront rates matter far more than eye-catching percentages.
There’s no single “best” energy discount or plan for everyone. The most suitable option depends on your household’s usage, location and preferences. Taking the time to understand how discounts work and what sits underneath them puts you in a stronger position to make informed decisions about your energy costs.
