Cheapest electricity providers in Sydney, NSW

Fact Checked

Which energy provider is cheapest in Sydney, NSW?

Energy Locals, Sumo and CovaU Energy currently offer some of the cheapest electricity prices on our database in Sydney, after any conditional discounts have been applied.

To see what you can expect to pay from these retailers, we’ve listed some of the cheapest electricity plans on our database below.

Please note that these prices are based on the Ausgrid network in Sydney with a general energy usage assumption of 3,900 kWh a year.

In instances where one provider may have multiple cheap offers, we show only one product with the lowest price estimate first.

The reference price for this area is currently $1,965/year. Use our comparison tool for a specific comparison.

Compare the cheapest electricity plans Sydney, NSW

These cost calculations are based on one postcode on the Ausgrid network in NSW.

More of the cheapest electricity plans in Sydney, NSW

Here are some of the cheapest plans from our database for customers looking for a specific plan type, including plans from the big three, 0% discount plans, discounted plans, variable rate and fixed rate plans.

Online Member (Energy Locals)

Here is Energy Locals’ plan on our database for NSW. This is a product from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3,900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Sumo Spark (Sumo)

Here is Sumo’s plan on our database for NSW. This is a product from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3,900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Freedom (CovaU Energy)

Here is Sumo’s plan on our database for NSW. This is a product from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3,900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Best-Rated Electricity Providers NSW

Cheapest Electricity Plan (Big 3 Provider) – EnergyAustralia, Flexi Plan

Here is EnergyAustralia’s plan on our database for NSW. This is a product from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3,900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Cheapest Electricity Plan (Discounted) – Energy Locals, Online Member

Here is Energy Locals’ plan on our database for NSW. This is a product from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3,900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Cheapest Electricity Plan (Variable Rates) – Energy Locals, Online Member

Here is Energy Locals’ plan on our database for NSW. This is a product from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3,900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Cheapest Electricity Plan (Fixed Rates) – EnergyAustralia, Rate Fix Plan

Here is EnergyAustralia’s plan on our database for NSW. This is a product from a referral partner†. These costs are based on the Ausgrid energy network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3,900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

What about energy discounts in New South Wales?

It’s important to know about energy discounts when comparing plans.  Regulatory changes to the energy industry in July 2019 saw many power companies move away from discounts, focusing on offering lower base prices instead.

That said, some retailers still offer discounts, which can be a useful way to help lower your power bill. However, energy plan discounts are not all made equal.

The most popular form of discount is a conditional discount, where certain preconditions must be met to be eligible for it. Conditional discounts are not limited to paying on time, bill credits and sign-up discounts.

Alternatively, providers may be so generous as to include a guaranteed energy discount with no conditions attached.

You should also take into consideration rewards programs offered by the energy companies. Some retailers also have specific partnerships that could benefit customers, such as Red Energy’s Qantas Frequent Flyer points.

Fixed vs variable rate plans

Most electricity plans listed above are variable rate plans, meaning the rates you are charged can change at a retailer’s discretion.

Some energy providers also offer fixed-rate plans, whereby you can lock in competitive prices now to save in the long run.

Fixed rate plans are offered by limited retailers such as Red Energy. Not all fixed rate plans on our database are included on this page, so head over to our fixed rate energy plans review for more.

Check the benefit period

While energy discounts can significantly reduce your overall power costs, it’s hugely important you understand the benefit terms of the plan you’re signing up for.

The benefit term is the period of time that the discount on your energy plan applies, which is typically 12 months. However, some providers may offer discounts over two years or even ongoing discounts.

After the benefit period ends, your discount could disappear and you’ll be left paying the non-discounted price for electricity. Worse yet, you may be moved on to a standing offer with possibly higher electricity rates.

Benefit periods are especially important when it comes to fixed rate energy plans, given that retailers will usually lock your rates in for one or two years at the most.

Tariff structure

You should also look into the tariff structure of your energy plan, which refers to how you’re charged for your electricity usage:

• Single rate tariff: A fixed rate that applies to all hours of the day
• Time of use tariff: Different rates are charged during defined peak and off-peak periods. Electricity during peak periods typically costs more than during off-peak periods.
• Controlled load tariff: Power-hungry appliances are metered separately and charged at a cheaper rate.

What is the cheapest electricity provider with the highest rating in Sydney, NSW?

Red Energy is one of the cheapest electricity providers with the highest rating in NSW, based on our electricity customer satisfaction ratings.

Electricity rates in NSW change frequently, which means annual energy bills can differ by hundreds of dollars, depending on the rates you pay.

Checking the usage and supply charges listed on a plan can help you determine if you’re getting a good deal.

Supply rates are a daily charge for access to the grid, while usage rates reflect the actual amount of electricity you use.

Here is an example of the rates you can expect to find on Red Energy’s cheapest plan in Sydney, NSW.

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Questions you should ask your electricity provider

Here are some questions you should ask any prospective energy provider before signing up:

• Are you offering me the plan with the lowest usage rates?
• How much are the supply charges and how do they compare to other plans?
• How does the plan compare to the reference price?
• Is there a contract? How long is it? Are there any exit fees if I leave?
• What discount can I get off my bill and how do I qualify for the discount?
• What is the benefit term of the discount? Will it disappear after a year?
• Can you offer me any additional sign-up incentives?

Even if you’re not switching, these are still good questions to ask your existing energy provider to make sure you’re currently on the cheapest electricity deal possible.

How to find the cheapest energy providers with the highest ratings in Sydney, NSW?

For many households, the cost of energy will be the most important factor when signing up for a new plan. However, other considerations, particularly customer service, are also worth giving some thought. Everyone wants low prices, but at what cost? 

This is why Canstar Blue annually surveys electricity bill-payers across NSW to find out how they rate their provider based on several variables, including customer service, bill clarity and value for money. 

For the ninth year in a row, Red Energy is the highest-rated electricity provider in NSW for overall customer satisfaction.

While this price comparison report looks at the biggest electricity providers in NSW, it’s important to know there might be others available in your specific area. 

Competition between the retailers is intense, which is great news for consumers looking to reduce their costs. There are opportunities to save money, provided you are willing to look.

Switching electricity providers is not a priority for every household – but if there is one message to take away, it’s that regularly comparing plans is a good idea if you want to reduce the amount you pay for electricity. You might just find a good deal.

Compare Electricity Providers in NSW

Original reporting by Jared Mullane
Image Source: Taras Vyshnya/Shutterstock