Small businesses in SA on default electricity contracts may receive some relief from 1 July 2026, with the Australian Energy Regulator’s (AER) latest Default Market Offer (DMO) delivering lower benchmark electricity prices for small businesses on standing offers.
The SA Business Chamber welcomes the reduction and hopes this will also flow through to better retail offers in the market. This is particularly important as businesses continue to manage rising operating costs, weak consumer demand and ongoing cost-of-living pressures affecting customers and cash flow.
The DMO acts as an important safety net and benchmark for the electricity market, including the 13,367 small businesses in SA on standing offer contracts.
Under the DMO 2026 – 27 determination, annual benchmark prices for a typical small business electricity customer in SA will decrease by:
The reduction includes the AER’s decision to lower the retail margin for small business customers from 11% to 6%, bringing it into line with residential customers, which is a change the Chamber has advocated for over several years.
The Chamber also supports the AER’s use of lower wholesale electricity cost estimates in determining the DMO. However, concerns remain that volatility allowances and other cost components might reduce the benefit flowing through to businesses.
The DMO is a benchmark, not necessarily the best deal
While the DMO provides an important reference point, it is rarely the most competitive offer available in the market.
Businesses should not assume the default offer is the best fit for their circumstances. Lower default prices do not remove the need to regularly review electricity bills, tariff structures and contract terms to ensure they still suit the business’s energy use and operating needs.
The Chamber’s December 2025 Survey of Business Expectations found that 45% of businesses review their energy contracts annually, while only 11.2% review them every billing cycle.
This is particularly important for businesses operating under time-of-use tariffs, where prices vary throughout the day. Some businesses may be able to shift energy-intensive activities to lower-cost periods, but many do not have that flexibility.
Advocating for better energy outcomes
The Chamber’s December 2025 Survey of Business Expectations found energy costs remain a major pressure point for businesses:
Through ongoing engagement with the Australian Energy Regulator, SA Power Networks, ElectraNet, Energy Consumers Australia, government and industry stakeholders, the Chamber advocates for a more affordable, reliable, accessible and transparent energy market for SA businesses.
The Chamber is also working with energy sector organisations to improve the information, tools and support available to businesses as energy pricing structures become increasingly complex.
Businesses facing energy cost, tariff, embedded network or energy transition challenges are encouraged to share their experiences with Cathi Buttfield, Senior Policy Adviser, to help strengthen the Chamber’s advocacy on behalf of SA businesses.
Need help reducing your energy costs?
With many businesses still facing energy cost pressures, regular reviews of electricity contracts and tariffs are more important than ever.
The Chamber’s Bill Hero member-only offer can help identify potential savings and check whether your current electricity plan still suits the way your business operates. Not a member? Become a member today, starting at just $49.
