This article is based on analysis published by SolarQuotes
Electricity network costs are set to rise across much of Australia in 2026-27 following the completion of the Australian Energy Regulator’s (AER) annual network pricing determinations. However, Victoria has emerged as a notable exception with some distributors recording lower charges.
The pricing approvals, which apply across most of the National Electricity Market, indicate that households in New South Wales, Queensland and South Australia are likely to face higher network-related electricity costs over the coming financial year. Network charges cover the cost of maintaining and upgrading the poles-and-wires infrastructure that delivers electricity to homes and businesses and form a significant component of retail power bills.
Among the largest increases approved by the regulator were for Endeavour Energy in New South Wales and Energex in Queensland, with network costs rising by around 11 per cent and 12 per cent respectively. SA Power Networks and Ausgrid also recorded increases of around 10 per cent.
More moderate increases were approved for Essential Energy and TasNetworks, while Victoria’s United Energy recorded smaller increases relative to interstate peers.
Victoria stood apart from the broader national trend, with AusNet Services recording an estimated decline of around 9 per cent in the network portion of household bills, while Jemena also posted a slight decrease.
The network pricing decisions were followed by an announcement from the Essential Services Commission that the Victorian Default Offer would fall by around 5 per cent for the average residential customer, equating to an estimated annual saving of $84. Small business customers are expected to save around 6 per cent, or approximately $241 annually.
The drivers behind rising network costs vary across jurisdictions, although several common themes have emerged nationally. According to the AER, higher transmission costs, inflationary pressures, energy transition investment, bushfire mitigation works and the recovery of previously under-recovered revenue are contributing to the increases.
Electricity distributors are also continuing to invest in grid upgrades to support growing levels of rooftop solar, battery storage and electric vehicle uptake, while also improving network resilience and replacing ageing infrastructure.
In New South Wales, some of the increases have been linked to major transmission and renewable energy transition projects, while South Australia’s pricing changes include expenditure aimed at maintaining system reliability.
Western Australia remains outside the AER’s annual pricing framework, with electricity pricing instead determined through the state budget process. For 2026-27, the Western Australian Government confirmed a 2.75 per cent increase to the fixed residential electricity charge for households on Synergy’s A1 home plan.
The AER’s network pricing determinations only reflect the network component of electricity bills, meaning the final impact on retail electricity prices will depend on retailer costs and tariff structures. The regulator is expected to release its final National Default Offer determination this week, after draft figures released in March suggested default electricity prices in New South Wales, South Australia and South East Queensland could ease due to lower wholesale and retail operating costs.
For households with rooftop solar, rising network costs still remain relevant, as these charges continue to be embedded within retail electricity prices. However, higher electricity prices can also improve the economic value of solar and battery systems by increasing the savings associated with reducing grid consumption.
