How often do usage rates change?

Electricity prices usually change once a year, around 1 July, when the Australian Energy Regulator (AER) and state bodies set new comparison prices. Most retailers adjust their rates at this time, though some may stagger changes between July and September. Retailers can change prices at other times too, as long as they give at least 5 days' notice.

Why is electricity so expensive in Australia?

Differences in power bills are due to a range of factors that take place before you get your energy bill, 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. 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).

What is a comparison price set by the AER?

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 comparison price set by the AER. The comparison price set by the AER in these states assists 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 comparison price set by the AER. The comparison price set by the AER 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.

What are wholesale prices?

Wholesale prices are the amount retailers pay for buying power from the grid. Wholesale prices, also known 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 price like Amber Electric, you won't need to worry about them.

Average Cost of Electricity in Australia: 32c/kWh

What do you want to compare?

The average cost of electricity, measured in kilowatt hours (kWh), varies between each state and territory in Australia.
You can expect to pay around 31 cents per kWh on average, with South Australians facing the highest rates.
How much you end up paying on your energy bill overall will be influenced by factors such as your power consumption, where you live, your provider and the type of plan you're on.

Average price of electricity per kWh by state

Like most infrastructure, electricity supply and pricing rules are partly set by each state or territory. This helps explain why prices differ depending on where in the country you live.

After energy is generated and distributed, it's down to providers to sell the plans on to you and get your connection set up.

If you're paying much more for power compared to the prices in the table, it could be time to compare energy providers and switch.

Good to know: Usage rates are cents per kWh (c/kWh), the cost for each unit of electricity you use while supply charges are shown as cents per day (c/day), a daily fee for being connected to the grid.

Average electricity rates by distribution network · dw:iI7hi
State	Distribution Network	Average usage rate	Average supply charge
NSW	Ausgrid	32.4c/kWh	134.78c/day
NSW	Endeavour Energy	32.5c/kWh	161.85c/day
NSW	Essential Energy	34.4c/kWh	240.94c/day
VIC	AusNet Services	30.28c/kWh	119.96c/day
VIC	CitiPower	24.47c/kWh	111.38c/day
VIC	Jemena	25.88c/kWh	116.12c/day
VIC	Powercor	26.65c/kWh	126.21c/day
VIC	United Energy	25.7c/kWh	108.58c/day
QLD	Energex	28.03c/kWh	169.93c/day
QLD	Ergon	31.06c/kWh	204.31c/day
SA	SA Power Networks	40.9c/kWh	158.52c/day
ACT	Evoenergy	32.78c/kWh	144.1c/day
TAS	TasNetworks	27.47c/kWh	162.78c/day
WA	Synergy	32.37c/kWh	116.05c/day
WA	Horizon Power	32.37c/kWh	116.05c/day
NT	Power and Water Corporation	31.68c/kWh	62.45c/day

We used the following methods to work out average usage rates in each state:

ACT, NSW, QLD, SA, VIC and TAS. We looked at single rate tariff plans in our database across each state, territory and distributor. Some providers set minimum and maximum usage rates, so we averaged those as well. For example, a provider might charge one rate for the first 11kWh used each day, and a different rate for any usage above that.
NT and WA. We used the usage rates for residential customers set by state regulators.

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Average price of electricity per kWh by provider

Here's a look at what some of the popular energy providers are charging on average across their single rate plans.

Average electricity usage rate by provider · dw:FS8Gy
Provider	Average usage rate
Origin Energy	29.79c/kWh
AGL	28.7c/kWh
EnergyAustralia	31.42c/kWh
Alinta Energy	28.32c/kWh
Red Energy	29.88c/kWh
Engie (formerly Simply Energy)	31.32c/kWh
Globird Energy	30.12c/kWh
Powershop	29.79c/kWh
1st Energy	26.2c/kWh
Tango Energy	29.02c/kWh

How are electricity prices in Australia calculated?

Electricity prices in Australia are influenced by several key factors, which together determine both your supply charges and the rate you pay for each unit of power (per kWh). Broadly, these include:

The state or territory you live in, and which energy distributor services your area
The type of tariff you're on (for example, single rate or time of use). We go into this in more detail further down
How much power you use
The mix of generation sources in your state or territory (such as coal, gas or renewables)
Network charges, which cover the cost of delivering electricity to your home

Retailers combine these costs and set their own pricing (within regulated limits in some states), so what you pay can vary depending on your provider and plan.

How do I read my energy bill to work out the cost of electricity per kWh?

Most people's energy bills are typically just 2-3 pages long. The main part to look for if you want to find your costs per kWh is the section detailing your charges.

Example of a bill for a customer on a single rate tariff plan

The red outline shows the energy consumption for the billing period, and the unit price shows how much you're paying in cents per kWh.

On a single rate plan, the price stays the same no matter when you use electricity.

Understanding your bill that outlines consumption and unit price

Example of a bill for a customer on a time of use tariff

The first red outline shows what times you'll be charged for using electricity during peak and off-peak hours. The second red outline shows energy consumption and how much you're paying in cents per kWh.

Picture not described

Learn more: See how to read your energy bill for more information and what different tariff types mean.

How can I find the best kWh rates for my household?

If your energy bill is higher than usual or you just want the cheapest kWh rates for your home, it's a good idea to compare energy plans and find out which provider is offering the cheapest rates.

Beyond price, consider:

Perks and discounts. Does the provider offer sign-up deals or other bells and whistles such as a rewards program, streaming freebies or frequent flyer points?
Customer service and features. Consider online reviews, customer support options and whether there's an app to manage your plan and track energy usage.

Frequently asked questions

Electricity prices usually change once a year, around 1 July, when the Australian Energy Regulator (AER) and state bodies set new comparison prices.
Most retailers adjust their rates at this time, though some may stagger changes between July and September.
Retailers can change prices at other times too, as long as they give at least 5 days' notice.
Differences in power bills are due to a range of factors that take place before you get your energy bill, 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.
- 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).
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 comparison price set by the AER.
The comparison price set by the AER in these states assists 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 comparison price set by the AER. The comparison price set by the AER 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 known 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 price like Amber Electric, you won't need to worry about them.

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Written by

Mariam Gabaji

Senior Utilities Editor & Tech Expert

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Mariam Gabaji is a journalist with 13 years of experience, specialising in consumer topics like mobile services and energy costs. Her work appears in the ABC, Yahoo Finance, 9News, The Guardian, SBS, 7News, A Current Affair and Money Magazine. Mariam holds a Bachelor of Arts in Journalism and was a finalist for the 2024 and 2025 IT Journalism Award for Best Telecommunications Journalist. See full bio

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Mariam has written 602 Finder guides across topics including:

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