There could soon be some welcome relief on the way for South Australian small businesses struggling with rising operating costs, with new electricity pricing changes set to deliver substantial savings on power bills across the state.
The Australian Energy Regulator has officially signed off on its final Default Market Offer (DMO) for 2026-27, with South Australian small businesses among the biggest winners.
Under the new determination, the average small business customer on a time-of-use tariff will see electricity prices drop by around $673 annually, representing a 12.1 per cent decrease compared to the previous pricing period.
Businesses on flat tariffs are also set for savings, with average bills expected to fall by $379, or 6.8 per cent.
For households, the picture is a little more mixed. Residential customers on time-of-use tariffs are expected to receive a modest average decrease of $25 per year, while customers on flat-rate tariffs may see a small increase of around $33 annually.
According to regulator data, the majority of South Australian households are already on time-of-use tariffs, meaning most customers should benefit from the reductions.
Currently, around 13,000 small business customers and 66,000 residential customers across South Australia remain on standing offer contracts directly impacted by the DMO changes.
South Australian Energy Minister Tom Koutsantonis said, “It’s heartening to see wholesale prices heading in the right direction, with the majority of residential customers and all small business customers seeing a decrease in their bills under the Australian Energy Regulator’s final Default Market Offer determination for 2026-27.
“It’s important to emphasise to consumers that the DMO is not the cheapest option on the market – the majority of customers are already on better deals and they should always shop around for the best deal they can find.
“We are seeing a genuine reduction in wholesale prices, and the Malinauskas Government is taking action to ensure generation capacity – including gas – is available to maintain this. It is incumbent on retailers to pass on the cost savings of these lower wholesale prices – and the Government now expects them to do so.”
The announcement comes as cost-of-living pressures continue to weigh heavily on households and businesses alike, particularly for hospitality venues, retailers and other small operators dealing with rising wages, rent and supply costs.
While the new pricing won’t solve every pressure facing businesses, for many South Australians it could provide some much-needed breathing room heading into the new financial year.
