DMO 2026-27 Delivers Electricity Bill Cuts for Laundromats on Standing Offers

DMO small business cuts in the 2026–27 default market offer deliver price reductions for small businesses on standing offers in New South Wales and southeast Queensland. Laundromat operators on default tariffs will see bills drop by up to 14% in some regions. Updated 21 July 2026.

The new rates took effect from 1 July 2026 and apply to businesses that haven’t negotiated a market offer with their retailer.

What the DMO cuts mean

According to the AER announcement, small business customers on standing offers in southeast Queensland will see price decreases of up to 14%, while NSW customers benefit from cuts ranging from 4% to 10% depending on distribution zone.

The DMO is a price cap that sets the maximum retailers can charge customers on default tariffs. It’s designed to protect businesses and households that haven’t shopped around for a better electricity deal.

For laundromats, which typically run high electricity loads from multiple dryers and washing machines, even a 10% reduction translates to meaningful savings. A small coin-operated laundromat using 3000 kWh per month might save $150 to $300 per month depending on their region and previous tariff.

Standing offers vs market offers

A standing offer is the default contract you’re placed on if you don’t actively choose a market offer from your retailer. Standing offers are typically more expensive than market offers, but the DMO caps how expensive they can be.

Market offers are the deals retailers advertise to attract customers. They often come with discounts, conditional benefits or fixed rates. However, not all market offers are cheaper than the DMO. Some market offers with high supply charges or no discounts can cost more than a standing offer under the new DMO.

Laundromat operators should check if they are on a standing or market offer. If you’re on a standing offer, the DMO cuts apply automatically. If you’re on a market offer, you won’t benefit from DMO reductions unless you switch.

Why prices are falling

Wholesale electricity costs have decreased from the peaks seen in 2023–24, driven by increased renewable generation and milder weather reducing demand. The AER’s DMO methodology factors in these lower wholesale costs, network charges and retail operating costs to set the price cap.

Queensland’s price reductions are larger than NSW partly due to state government rebates and the Energy Price Relief scheme, which provides additional direct support to eligible small businesses.

Laundromat energy usage patterns

Laundromats are electricity-intensive businesses. Dryers account for the bulk of energy use, particularly vented dryers which can draw 3 to 5 kW per machine. Washing machines use less power but still contribute to base load, especially during peak trading hours.

Most laundromats operate on small business tariffs, which include a peak/off-peak structure. Coin-operated laundromats have less control over when customers use machines, but attended laundries can shift some loads to off-peak hours to reduce costs further.

Should you switch tariffs?

If you’re on a standing offer, you’re now paying less thanks to the DMO. However, you might still save more by switching to a competitive market offer. Energy comparison sites like the AER’s Energy Made Easy or the Victorian government’s Victorian Energy Compare let you compare offers for your business.

Look for market offers with:

• Lower supply charges (the daily fixed cost)
• Competitive usage rates, especially if your business runs during off-peak times
• No exit fees or lock-in contracts so you can switch if better deals appear

Some retailers offer small business plans with time-of-use discounts, which can benefit laundromats if you can encourage customers to use services during off-peak periods through pricing incentives.

Regional variations

DMO reductions vary by distribution network zone. In NSW, Ausgrid customers (Sydney, Central Coast, Hunter) saw smaller cuts than Endeavour or Essential Energy zones. In Queensland, Energex customers (southeast Queensland) received the largest reductions.

Check your electricity bill to see which distribution network you’re on. This determines your DMO rate and which comparison tools you should use when shopping for market offers.

Rebates and additional support

The DMO cuts sit alongside other government support schemes. Queensland’s Energy Price Relief scheme provides rebates on power bills for eligible small businesses, while NSW offers the Small Business Energy Incentive for energy-efficient upgrades.

Laundromat operators should check eligibility for these programs. Upgrading to energy-efficient dryers or installing solar panels can reduce operating costs beyond what tariff cuts deliver. Find operators via our directory.

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