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

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 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.

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.

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.

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

• 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 reference 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 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 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 prices like Energy Locals or Amber Electric, you won't need to worry about them.

Written by

Mariam Gabaji

Senior Utilities Editor & Tech Expert

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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