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What is the average electricity bill in Australia?

The following average electricity bills are taken from our customer satisfaction ratings research published in 2021. The annual costs reported include households of all sizes and should only be considered as a general guide.

Average Annual Electricity Bill by State/Territory 

• Western Australia: $1,168
• Queensland: $1,172
• ACT: $1,348
• Victoria: $1,392
• New South Wales: $1,424
• South Australia: $1,488
• Tasmania: $1,824
• Northern Territory: $1,884

Read more about average electricity bills.

What are peak and off-peak electricity times?

Peak and off-peak electricity times refer to separate usage rates that are charged for different times of the day. This type of pricing structure is only  available to customers on a time of use tariff. A flexible pricing tariff means customers are charged three separate electricity usage rates for either ‘peak’, ‘off-peak’ or ‘shoulder’ periods, and is common for households with smart meters installed.

• Peak: A ‘peak rate’ is charged during periods where there is a high demand for electricity. Peak usage rates are generally applied from 3pm to 9pm and are considerably higher than those charged in off-peak or shoulder periods.
• Off-Peak: An ‘off-peak rate’ is charged during periods of reduced energy usage. Off-peak electricity rates generally apply from 11pm through to 7am and are much cheaper than shoulder or peak period rates.
• Shoulder: A ‘shoulder rate’ is a rate charged between peak and off-peak periods when there is a mild demand for electricity. Shoulder rates usually apply from 9pm to 11pm and 7am to 3pm. Shoulder rates are more expensive than off-peak periods and cheaper than peak periods.

Who is my electricity provider?

There are a few scenarios in life which could leave you scratching your head trying to figure out who your energy provider is. Whether you’ve moved into a new place and have stayed with the previous occupant’s energy provider, or the energy bill responsibility has just been passed down to you and you’re unsure of where to even start, don’t fret, there are a couple of things you can do to check.

How to find your electricity supplier

1. Talk to the last person who would have taken care of the bill: If you’re still able to get in touch with the last person paying the bill, whether it be an old housemate or family member, the best thing to do is ask them to transfer the electricity account into your name. The same goes if you’ve just moved into a new house, where you might be able to get in touch with the old residents through your landlord or real estate agent.
2. Call up your electricity distribution network: Finding your distributor is as easy as visiting our region-specific distribution network guide. They will be able to tell you what electricity provider is currently registered to your address.

What if I have a complaint about my supplier?

To issue a complaint about your electricity retailer, you can contact the energy Ombudsman for your respective state or territory.

• Energy and Water Ombudsman Victoria
• Energy and Water Ombudsman New South Wales
• Energy and Water Ombudsman Queensland
• Energy and Water Ombudsman South Australia
• Energy and Water Ombudsman Western Australia
• Energy Ombudsman Tasmania
• Australian Capital Territory Ombudsman
• Ombudsman Northern Territory

Before submitting a complaint to the ombudsman, try resolving the issue with your electricity retailer first. You and your energy company will usually be able to reach a solution without a need to take it further.

How do you switch energy providers?

Most energy companies let you switch online in a process that often takes just a matter of minutes. Before you do this, however, make sure you’re not locked into a minimum term contract with your existing provider, because if you are, a cancellation or exit fee may need to be paid. If you have an open term contract, it will not be necessary to inform your current provider that you’re leaving – your new energy company will handle that for you. To switch energy providers, you will usually have to provide the following information:

• NMI (if known)
• Supply address
• Bank details (bank name, BSB and acct number)

Be aware, your new provider may carry out a credit check before signing you up. You can check your credit score for free here.

Once this is done, your local distributor will take a meter reading for your final bill with your old provider and to start a fresh billing cycle.

Will switching providers cost you money?

There are no costs for switching providers, nor do electricity retailers charge a sign-up fee. That said, if you are on a minimum-term contract, there may be exit fees for switching. Fortunately these fees are not terribly expensive, usually costing $20 to $80. For those moving house, there may be a reconnection fee of around $20-$50 if the new property has been disconnected from the energy network.

Will you lose power supply if you switch providers?

Switching energy providers at the same property should in no way affect your supply of electricity. This is because the distributor is simply changing which retailer it informs about your electricity usage – there is no need for any changes to your home’s electrical infrastructure.

What types of energy plans are on offer?

There are generally two types of electricity plans on offer from retailers – market offers and standard retail contracts. Market offers are usually the most competitive plans advertised by electricity providers, and often come with cheaper rates, sign-up incentives and other value-add perks for customers. Both of these plan types can come with variable or fixed rates, as well as green energy options.

Market offers vs standard retail contracts

Market retail contracts are energy plans designed by retailers. These are almost always cheaper than the alternative standard retail contracts that are also offered, and are likely to include discounts, incentives and bonuses for customers. The main downside to market offers is that your retailer can change the prices you’re charged at any time, unless it is a fixed rate plan. The majority of these offers come with variables rates. Not all households in Australia will have access to market retail offers.

Standard retail contracts are plans with the terms and prices set by a state government. Retailers in deregulated electricity markets must provide a standard retail contract by law as a default option for customers who have yet to switch to a market offer contract. Standard retailer contracts have fixed prices for six month intervals, however the rates are generally higher than those of market retail offers and there are no discounts available. As such, standard offers are more expensive and are not intended as a viable alternative to market contracts.

What is a variable rate plan?

A variable rate plan means the amount you are charged for power usage or supply can change at your retailer’s discretion. The majority of retail market contracts have variable rates, which are typically reviewed every 12 months. Variable rate plans are usually available on one or two-year contracts, but some providers do offer open contracts. Exit fees will often apply if you cancel the agreement. Variable rate plans generally provide the best value, but you must be sure to regularly review your options as charges and discounts change.

What is a fixed rate plan?

A fixed rate plan means the amount you are charged for energy usage and supply will not be changed during the term of your agreement. While prices on variable rate plans will change every year, fixed rate plans provide some certainty over the rates you will pay for electricity. However, your bills will still fluctuate depending on your usage habits. Fixed rate plans are only available on one or two-year contracts, meaning that you will be protected from any rate increases over that period. Only a handful of providers offer fixed rate plans, including AGL, Origin, EnergyAustralia and Tango Energy.

What is a GreenPower plan?

Many retailers offer business and residential customers the option to have some or all of their energy usage reimbursed to the electricity grid from renewable energy sources. GreenPower plans are usually offered with 25%, 50%, 75% or 100% renewable generation. GreenPower plans involve paying a few cents extra per kWh, potentially making it rather expensive.

What are electricity supply charges?

An electricity supply charge is a cost incurred for remaining connected to an energy network. Supply charges vary considerably from state to state, generally ranging in costs from 80c to $1.50 each day. Even if you don’t use any power, you will still need to pay the supply charge. Despite supply costs being a charge imposed by energy distributors, the rates will vary from retailer to retailer. As supply charges can heavily contribute to your bill, it’s important you check the energy price factsheet.

What are electricity usage charges?

Electricity usage charges are what you pay for each kWh of electricity your household consumes – the more energy you use, the more you will pay. Usage charges generally cost around 20c/kWh to 40c/kWh, but prices vary significantly between states and depending on your provider. Usage charges will typically be the most costly element of your electricity bill, so it’s very important to understand what rate you are paying and whether you could find a lower rate with a different supplier.

What is a kWh?

A kilowatt hour (kWh) is a unit of measurement used for measuring electricity usage for billing purposes. Simply put, a kilowatt (kW) is a measurement of how much electricity an appliance demands in order to operate, while a kWh is the number of kilowatts that your household consumes over a period of time.

What are electricity tariffs?

A tariff refers to the pricing structure of your electricity usage charges. Depending on your tariff, you may be charged different rates depending on when, or how, you use electricity. Tariffs can vary between energy retailers, but the most common electricity tariffs are:

• Single rate
• Time of use
• Controlled load
• Block rate
• Two rate

The tariff available to you depends on your meter type. Old meters will usually be on single rate tariffs, while newer meters can take a number of usage measurements for multi-tariff rates.

What are electricity discounts?

Discounts are a percentage deduction made from your electricity costs at the end of each billing period. Energy discounts are only available on market retail contracts, and the amount you are discounted – if at all – will vary across different plans and electricity companies. Discounts you might commonly encounter include:

• Pay on time discount
• Direct debit discount
• Bundled energy discount
• Unconditional energy discount
• Email billing discount

The discount amount, which can vary from as low as 2% up to 40% or more, will usually be taken off your electricity usage costs. However, some providers have discounts off your entire bill instead. Be aware that not all high-discount plans work out the cheapest overall options as some of the contracts with the highest discounts will also include the highest usage or supply charges, which can negate the overall savings. Failing to meet the conditions of your discount could also mean you are charged a fee. Also keep in mind that energy discounts have benefit periods and can expire.

What is a discount benefit period?

A discount benefit period is the length of time that your energy discount will apply. In most cases, benefit periods last for 12 months, although some electricity retailers offer discounts over two years, or even ongoing. Once the benefit period ends, you will likely have to start paying the full, non-discounted rate for power, which could be considerably more. It’s best to treat big-discount plans as introductory offers and review your options at the end of the benefit period.

Are there any electricity concessions available?

Each state and territory provides a number of government-mandated concessions designed to assist households experiencing hardship that affects electricity requirements or their ability to pay bills. Depending on the type of government concession or rebate, customers may be required to hold one of the following:

• Senior Card
• Pensioner Concession Card
• Centrelink Health Care Card
• Department of Veterans’ Affairs Gold Card

The names and availability of assistance schemes will vary across states, but they generally include:

Emergency relief assistance: Customers who are at risk of being disconnected due to a legitimate inability to pay their utility bill may be eligible to receive a one-off payment. This can only be applied every 12 or 24 months depending on your state.

Medical Energy rebate: Customers who require energy-consuming medical equipment or must regularly use heating or cooling appliances for medical purposes may receive an annual rebate. Some states such as Victoria instead supply a reasonable discount on your energy bill.

Other rebates, concessions and discounts: Depending on your state, several other assistance programs may be available to you if you are:

• A senior citizen
• A veteran
• A low income earner

What is bill smoothing?

Bill smoothing is a payment scheme with which customers can pay fixed monthly, fortnightly or weekly installments towards their expected electricity bill. Your retailer will forecast your annual electricity requirements, given your history, to see how much you should be paying. Incorrect estimates will be settled in later bills. Bill smoothing is a great option for those who like a predictable budget. The idea behind paying the same amount each billing cycle is that you won’t be taken by surprise in peak energy usage seasons.

What are electricity meters?

Electricity meters are devices that read your household’s energy usage. These are either an older accumulation meter or a newer digital meter, known as a ‘smart meter’. Smart meters are meters that provide energy usage information every half hour, allowing households and businesses to more closely monitor usage through apps and web portals, as well as benefit from flexible pricing tariffs.

Smart meters are installed in most Victorian homes and are becoming increasingly common in New South Wales, South Australia and Tasmania. Some energy providers, such as Powershop, have built their business models around the use of smart meters. It is recommended that customers monitor their electricity usage through their smart meter to become better informed about their usage habits, which could result in reduced costs.

What if my meter can’t be read?

If a meter reader is unable to access your electricity meter (e.g. due to an aggressive dog), then the distributor will estimate your energy usage based on previous records and your retailer will charge you accordingly. If this is the case, an ‘E’ will be displayed next to your usage figure on your bill. If it is later learned that this was an incorrect estimate, you will be charged more or less accordingly on your next bill. This is not a problem for households with smart meters, given usage data is automatically transferred to your distributor. You may also be able to submit your own meter reading.

What’s the difference between electricity retailers and distributors?

There is an important distinction between electricity retailers and distributors. In a nutshell, a retailer is the company that bills a customer for using energy, while a distributor is responsible for maintaining electricity supply. For billing enquiries, it’s best to contact your electricity retailer, otherwise known as a power supplier. You’ll need to contact your energy distributor if you’re enquiring about a power supply issue, outage, new electricity connection or fallen powerlines.