From 1 July 2026, you might notice a new term when comparing electricity plans: the comparison price set by the AER.
It replaces what was previously known as the reference price, but the purpose behind it hasn't changed.
Here's a simple guide to what it means, why the name has changed, and how to use it.
The comparison price set by the AER is a standard amount to compare electricity plans.
It's set each year by the Australian Energy Regulator (AER) and represents an estimated annual electricity cost based on typical usage assumptions.
Energy retailers show how their plans compare to this amount — usually as a percentage above, below or equal to the comparison price. This makes it easier to see how different plans stack up, without needing to look at every individual rate and fee.
The reference price was the previous benchmark used to help consumers compare electricity plans. The comparison price set by the AER is its replacement.
The name was updated by the AER to make things clearer for customers.
Research showed that many people weren't sure what the reference price was, or who set it. Some even thought it was set by energy companies.
The new term helps remove that confusion. It makes it clearer that the comparison price is an independent benchmark used to compare electricity offers.
When you're comparing electricity plans, the comparison price gives you a simple way to compare plans at a glance.
You'll often see plans described as a percentage above, below, or equal to the comparison price set by the AER. For example, a plan that's listed as "10% below the comparison price" is estimated to cost less than the comparison price, based on a defined usage profile.
This can be a helpful starting point, as it brings everything back to the same baseline. Instead of trying to compare different rates, discounts and fees, you can quickly get a sense of how competitive a plan is.
That said, it's still worth looking at the details. Your actual usage, tariff type and any plan features all play a role in finding the option that best suits your household or business.
The change from reference price to the comparison price set by the AER doesn't affect how much you pay for electricity. Your actual bill will still depend on things like how much electricity you use, your tariff type, and the details of your plan.
The comparison price set by the AER is the new name for what was previously called the reference price. It works in a similar way, helping you compare electricity plans based on typical usage.
No. The comparison price is only used as a benchmark to help compare plans. Your actual bill depends on your usage, tariff type, and the details of your plan.
Energy retailers use percentages to make it easier to compare plans. A plan listed below the comparison price is estimated to cost less than that amount, based on typical usage.
Not necessarily. The comparison price is a guide, not a market offer. Some plans may cost less than the comparison price, while others may cost more, depending on their rates and features.
The comparison price is set by the Australian Energy Regulator (AER), an independent body. It is not set by energy retailers.
No. The comparison price set by the AER applies to electricity plans in New South Wales, South Australia and South East Queensland.
In Victoria, a similar benchmark price is used called the Victorian Default Offer (VDO), which is set by the Essential Services Commission.
Other states, like Western Australia, have their own electricity pricing structures and regulations.
