Average electricity cost per kWh in Australia

Fact Checked

Usage charges can make up a significant portion of your electricity bill, so it’s important to read your energy price fact sheet and make sure you’re receiving the best price. 

Canstar Blue has taken a look at what is considered to be a good cost for electricity per kWh, including calculating the average cost per kWh in each state.

What is the average electricity price per kWh by state and territory?

The cost of using electricity is generally referred to as a ‘usage charge’ or ‘usage rate’. These charges are measured in kilowatt-hours (kWh), with most electricity retailers charging between 24c and 43c per kWh, depending on your state and electricity tariff.

Electricity usage rates vary from state to state, and even within different parts of the same state. There are a number of reasons for this, but for the purposes of this article, note that the average electricity price per kWh in Victoria won’t be the same as the electricity price in New South Wales.

Below, Canstar Blue has calculated the average usage rate per kWh for single-rate tariffs across each distribution network in NSW, VIC, South East Queensland, South Australia, the Australian Capital Territory and Tasmania, based on plans available in our database. Prices are shown in cents per kWh.

← Mobile/tablet users, scroll sideways to view full table → 

Source: www.canstarblue.com.au – 22/04/2025. Average electricity usage rates are based on non-solar only plans on Canstar’s database for each respective rate type (single rate and controlled load), available for annual usages based on the reference usage amounts for each distributor for controlled load plans: NSW, VIC, QLD, and SA per AER, VIC per Victorian Default Offer, ACT per ICRC, TAS per the median usage in the Office of the Tasmanian Regulator’s report, Typical Electricity Customers in Tasmania 2022.

South Australians, on average, pay the highest electricity prices per kWh, in addition to often missing out on big discounts and bonus perks. In comparison, households in VIC, TAS and the ACT generally pay the lowest prices per kWh.

It’s important to note that the kWh price is only a fraction of your electricity bill. Another contributor to your energy bill is the fixed or supply charge – a daily fee that applies regardless of how much electricity you’ve used, if any. The supply charge is what customers pay for being connected to the electricity grid.

You’ll also want to factor in the impact of discounts on your electricity costs – while some discounts just mask high rates, there are plenty of energy deals with big discounts that really do offer genuine value.

What does electricity cost per kWh look like?

Comparing kWh costs between providers and plans is important when looking for a good electricity deal. However, the extra complication of conditional discounts can make finding the cheapest option a challenge, especially when discounts are not standard across the board. For example, some electricity providers only apply discounts to usage rates, while others include both usage and supply charges.

To help you turn typical kWh usage costs into actual cost estimates, consider the following tables where we show some of the cheapest deals on the Canstar Blue database for a selected postcode in each state. 

If you want to compare your current energy plan and what your current kWh cost is, use our free electricity price comparison tool for specific quotes in your area.

NSW electricity prices

VIC electricity prices

SEQ electricity prices

SA electricity prices

Where do I find a retailer’s electricity cost per kWh?

Energy retailers are required to publish the exact details of their products in their energy price fact sheets, including a plan’s electricity prices per kWh. In NSW, SA, QLD, TAS and ACT, these sheets are called Basic Product Information Documents; in VIC, it’s called a Victorian Energy Fact Sheet. In these documents, you will find all the details you need to make an informed decision about that retailer’s electricity price per kWh.

Energy price fact sheets are available from your retailer’s website, as part of your welcome pack after you sign up to a plan, or by searching through plans on comparison sites such as Canstar Blue or the government’s Energy Made Easy. While energy price fact sheets can differ between states, the details about electricity usage costs per kWh usually appear at the top of the page. 

The below GloBird Energy fact sheet is an example of how usage charges per kWh are displayed.

Be sure to focus on the electricity usage rates that include GST, as this will be what you actually pay. If you have a flexible pricing tariff, your fact sheet will also show the varying usage charges based on time of use or block rates – you can see this further down the page on the example GloBird Energy fact sheet.

Who sets electricity usage rates?

Electricity usage charges are deregulated in most states, which means energy companies like AGL and Origin Energy set the electricity price per kWh. Electricity retailers don’t set prices arbitrarily however; rather, their prices largely reflect the wholesale price of electricity.

The wholesale price is what electricity providers pay generators for electricity, which retailers then on-sell to electricity consumers. Because there are limitations on how and when electricity companies can change their prices, retailers try to predict how the wholesale price will behave when setting their per kWh electricity prices. Wholesale prices change every 30 minutes.

How often do electricity usage rates change?

Electricity rates generally change every 12 months for most customers, though it depends on whether you’re on a standing offer or a market offer. Customers on a standard contract are guaranteed by law that their electricity charges won’t increase more than once every 12 months. Customers on a market offer may technically have their rates adjusted at any time, provided they’re given written notice in advance.

These electricity contracts are known as ‘variable rate plans’, meaning your electricity retailer can vary your usage rates. The alternative to a variable rate plan is known as a fixed rate plan. Customers on a fixed rate plan receive a guarantee that their electricity prices won’t increase for a fixed period of time – usually one or two years. Only a handful of retailers currently offer fixed rate deals, and while they may be more expensive upfront, they can potentially save you in the long term if energy prices climb.

Is the electricity price per kWh all you should be looking at?

If electricity usage rates are the only factor you’re considering, then you could be missing out on savings elsewhere.

Here are a few features to look out for in an energy plan to get the best overall value:

• Discounts: Typically apply to usage or usage and supply rates for a period of time. Some discounts may only apply if certain criteria are satisfied, like paying on time or setting up direct debit payments
• Bill credits: Some retailers offer credits off bills to customers who sign up online or bundle their utilities with the same company, such as electricity and gas, or even internet. Energy bill credits are either a once-off or ongoing feature
• Rewards programs: Energy providers like AGL, Alinta Energy and Lumo Energy offer exclusive deals to customers in partnerships with various companies. Some rewards include frequent flyer points, shopping vouchers and movie tickets
• Entertainment packages: Whether it’s a subscription to a streaming service or tickets to a zoo, some energy plans unlock entertainment features. These offers can change frequently
• Customer service: Look at call centre hour availability as well as smartphone apps and website functionality. Quality customer service can be vital 

How do I find a plan with the best electricity cost per kWh?

When comparing electricity plans, it’s important to consider more than just big discounts or low usage rates. If you’re looking for a good deal on energy, you should balance a range of considerations including usage rates, discounts, perks and any additional contract terms.

Canstar Blue’s electricity comparison tools allow you to search for the cheapest or best value plans available in your postcode. With the free search function, you can see which electricity plans offer the lowest average annual cost, as well as extras such as discounts, solar feed-in tariffs or EV inclusions.

You can begin comparing by clicking the Canstar Blue link below.

Compare Electricity Plans

Original reporting by Brendon O’Neill
Image Source: Frame Stock Footage/Shutterstock.com