The Australian Competition and Consumer Commission (ACCC) has released its latest Electricity Market Inquiry report, highlighting that households on the same electricity plan for over three years are paying an average of $221 more annually than those on newer plans.

Despite an increase in customers switching to their retailer's best plan, millions of Australians continue to pay excessive amounts. The ACCC's analysis indicates that households could save between $100 and $250 per year by switching from a regulated safety net plan to cheaper options offered by retailers.

In New South Wales, for instance, households not on their retailer's best plan could save up to $300 annually by simply requesting a switch to the cheapest available plan. ACCC Commissioner Anna Brakey emphasized the importance of switching plans to avoid loyalty penalties and replicate the value of recently ended government rebates.

The report reveals that 37% of residential customers are paying prices at or above the default offer, with over 400,000 customers paying more than 10% above it. The Default Market Offer (DMO) serves as a regulated safety net price in several regions, while market offers are set by retailers.

Residential electricity bills have increased by 6% across all National Electricity Market regions from August 2024 to August 2025, with New South Wales experiencing the highest increase at 9%. The ACCC noted that the 'Better Bills' reforms have positively impacted consumer awareness, with a rise in customers on their retailer's best plan.

Competition in the retail electricity market has seen small improvements, with new retailers entering the market and no exits reported. The ACCC encourages consumers to compare energy plans and highlights the need for policymakers to reduce barriers to switching.