The state you reside in and which energy distributor services your areaWhich tariff you're on, for example single rate or time of useHow much power you use
Average electricity costs per kWh (by state)
Like most infrastructure, each state or territory is responsible for its own set of laws and regulations to determine the supply cost of electricity. This means prices differ depending on where in the country you live.
After energy is generated and distributed, it's down to energy providers to sell the plans on to you and get your connection set up.
We used the following methods to work out average usage rates in each state:
ACT, NSW, QLD, SA and VIC. We calculated for the average using the cheapest residential market offer usage rate from the 5 retailers with the largest market share in each state.
NT and WA. We used the maximum rates for residential customers set by state regulators.
TAS. We calculated for the average using the cheapest residential market offer from the 3 retailers with the largest market share in the state.
Finder survey: How many Australians are stressed by their electricity bill?
Response
No
63.41%
Yes
36.59%
Source: Finder survey by Pure Profile of 1145 Australians, December 2023
Why is electricity so much more expensive in some states than others?
South Australian residents may be frustrated seeing that residents in Victoria are paying 14.64c/kWh less for their electricity on average. Fortunately, the SA government does offer concessions to help alleviate the cost of electricity bills.
Differences in power bills are due to a range of factors that take place before you get your energy bill in the mail, including:
Generation costs. Renewable energy sources like wind and solar tend to have lower running costs; however, they often can't cover demand on their own. This means many states use more expensive coal and gas plants to meet energy needs. In South Australia in particular, there's a heavy dependence on wind power followed by gas, which is more expensive than black or brown coal.
Network costs. Each distributor is responsible for maintaining the poles and wires to keep a constant supply of power to homes and businesses. Network charges can account for up to half of your energy bill.
Retail mark-ups. In order to make money, retailers set their own mark-up on energy plans (in line with regulations).
Should I be comparing kWh costs between providers?
Yes, but only to a degree. Your kWh usage costs are going to make up the bulk of the cost of your electricity bill but they're only one part of the picture.
Your bill is also affected by:
Supply charges. A daily fee for being connected to the grid.
Tariff type. If you're on a single rate your kWh usage costs are going to be the same no matter the time of the day you're using power. But on a time of use tariff you'll have different prices during peak, off-peak and shoulder periods.
Bill credit. Some energy providers offer sign-up deals which can include bill credits. These are sometimes applied on your first or second bill, or be split across a period of time.
Take a look at our comparison table for an idea of what providers are offering. If you want a quote customised to your specific usage and location, you can use our energy comparison tool.
How do I use my own energy bill to find my costs per kWh?
Most people's energy bills are just 2–3 pages. The main part to look for if you want to find your costs per kWh is the section detailing your charges.
It could be called "Total electricity charges" or "New charges and credits" and is sometimes in a section called "How we've worked out your bill".
The kWh cost itself will be in the column listing the "price" or "charge". "Units" will show how much energy you used which is multiplied by the price/charge to find the total "amount".
See 2 examples below:
The areas marked out in red show the price in cents per kWh.
Your charges will be listed differently depending on which tariff type you have. Here's how to read the main 4 types of charges:
Supply charge. May also be noted as a "daily charge". This is the charge you pay per day for having your power connected. It's usually the highest charge on your bill and it will be listed regardless of your tariff type.
Single rate. Your bill will list all your electricity consumption as "peak usage". The listed peak rate is your cents per kWh cost.
Time of use. Your bill will list all of your electricity consumption under 3 separate charges. These will be "peak", "off-peak" and "shoulder". Each has its own kWh charge.
Controlled load. You'll only see this charge if you have a power-heavy appliance (hot water system, pool heating system) that requires its own circuit. It will appear in addition to your single rate or time of use charges if you have a controlled load.
How often do electricity usage prices change?
Electricity prices should change around once a year.
Each year on 1 July the Australian Energy Regulator (AER) and other state regulators set new reference prices or electricity pricing orders that determine the maximum energy price they consider to be "fair" for consumers.
The AER regulates states that are part of the National Electricity Market (NEM) which includes New South Wales, South-East Queensland, Tasmania, Australian Capital Territory and South Australia. All other regions are regulated by their own state bodies.
Most energy retailers change their power prices roughly around the same time, and usually after 1 July. Though depending on the provider, they may stagger the change between July and September.
They can change the price whenever they wish so long as they give you 5 days' notice, unless you're on a fixed rate plan which locks in your rate for a period of time.
What is the average price of electricity between providers?
We've calculated the average kWh price of the following 6 providers:
To calculate the average cost for each provider, we looked at all their cheapest single rate plan across each state where they operate. We calculated the average for both the supply charge and the usage rate of each provider.
How can I find the best kWh rates for my household?
Solar power plans:
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Average energy bill:
Find out how your energy bill compares to the rest of Australia
Frequently asked questions
In New South Wales, South Australia, South East Queensland and Victoria, regulators apply what's called the Default Market Offer or Victorian Default Offer as it's called in VIC. It's also known as the reference price.
The reference price is set in these states to assist you with comparing energy plans. The offers you see on a provider's website are market offers. A market offer can be set at an amount below or above the reference price. The reference price is the maximum amount a provider can charge a customer on a standing offer plan. You're put on a standing offer automatically by a provider once your market offer ends.
Wholesale prices are the amount retailers pay for buying power from the grid.
Wholesale prices, also know as "spot prices", change every 5 minutes which makes them far more volatile than regular rates. They drop when the grid has lots of stored energy but demand for power is low.
If generation is low but demand is high, prices can skyrocket. Ongoing generation issues with high demand in periods like winter and summer can contribute to worsening the energy crisis.
Unless your provider offers wholesale prices like Energy Locals or Amber Electric, you won't need to worry about them.
Was this content helpful to you?
Thank you for your feedback!
To make sure you get accurate and helpful information, this guide has been edited by Moira Daniels as part of our fact-checking process.
AGL and EnergyAustralia are closely matched on price but AGL fares slightly better for additional perks such as bundling offers.
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