What is the average (kWh) cost of electricity in Australia?

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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.

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.

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).

Finder survey: How many Australians are stressed by their electricity bill?

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.

• Learn more: See how to read your energy bill for more information.

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:

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

If your bill is higher than the average or you just want the cheapest kWh rates for your household, it's a good idea to compare energy plans and see what's on offer.

Outside of price you'll want to consider:

• Discounts and extra benefits. Does the provider offer sign-up deals or perks as part of a loyalty program?
• Customer service and features. Consider a wide range of online reviews, customer support options and whether there's an app to manage your plan.
• Solar feed-in tariff. If you have solar you want to make sure you're getting the best deal possible.

Why compare energy with Finder?

We know our stuff. Our experts review hundreds of plans each month. It's hard work, but we love it.

You can rely on us. We update plan data on dozens of providers daily, and we're constantly fact-checking.

We're here to help. We've helped millions of Aussies find cheaper energy. That's pretty powerful.

Learn more about energy

Our energy guides can help you compare and understand what plan is best for you.

Best energy plans: 5 plans selected by our experts, assessed and updated regularly

Cheap energy plans: Find the cheapest energy plans available this month

Solar power plans: Got rooftop solar? Compare your options and save even more

Average energy bill: Find out how your energy bill compares to the rest of Australia

Frequently asked questions

• What is a reference price?

  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.

• What are wholesale prices?

  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.

Written by

Dylan Crismale

Writer

Dylan Crismale was a utilities writer at Finder. Prior to joining Finder he was at Twitter, 2SER, Vertigo Magazine and Central News. See full bio

Dylan's expertise

Dylan has written 44 Finder guides across topics including:

• Electricity and gas
• Solar power
• NBN, home wireless and mobile broadband
• 4G/5G mobile plans
• Managing your household bills
• Saving on travel