Molly Ayala
Energy is an essential service that can be costly. In Australia, the average quarterly electricity bill is around $292, but this varies across states. Western Australia has the cheapest electricity and gas bills, while residents of New South Wales pay the most for their electricity, with an average quarterly bill of $443. Gas is generally cheaper than electricity, but it is less efficient to run and its price is on the rise. When choosing an electricity plan, it's important to compare offers from a range of providers, both big and small. There are many new energy retailers in Australia, and some of the cheapest energy plans come from smaller retailers. To find the cheapest electricity company in Australia, you can use a price comparison tool such as GoSwitch or Canstar Blue, which will help you find the best deal in your local area.
| Characteristics | Values |
|---|---|
| Average quarterly electricity bill in Australia | $292 |
| State with the cheapest electricity and gas bills | Western Australia |
| State with the most expensive electricity bills | New South Wales |
| Average quarterly bill in New South Wales | $443 |
| Cheapest electricity providers | Nectr, OVO Energy, Energy Locals, Dodo, GloBird, Red Energy, Powershop, PowerDirect |
| Comparison tools | GoSwitch, Canstar Blue, Selectra, Energy Made Easy |
| Incentives | Discounts, carbon-neutral energy plans, solar feed-in tariffs, solar rebates |
| Electricity usage charges | Measured in kilowatt-hours (kWh) |
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What You'll Learn
Energy discounts and how to get them
Energy is an essential service, and while it's a necessity, it doesn't have to be expensive. Energy discounts are available, and there are tools and services to help you find them.
Firstly, it's important to understand the distinction between electricity retailers and distributors. A retailer is the company that bills you for using energy, and a distributor is responsible for maintaining the electricity supply. Distributors are who you need to contact if you have a power supply issue, outage, or fallen power lines.
To find the best energy discounts, you should use a price comparison tool or service. These will help you find the cheapest electricity providers in real-time, and some are free to use. You can use these tools to compare offers from a range of providers, both big and small. Some tools will ask for your NMI (National Meter Identifier) or postcode to help find the best options for you.
When comparing energy plans and providers, you may see the term "Default Market Offer" or DMO. This is the electricity tariff set by the Australian government to cap energy prices and help consumers compare plans. While it's not always the cheapest offer, it does protect consumers from exponential price increases if they don't engage with the energy market.
Some common energy discounts include a percentage off your electricity usage costs or your entire bill. However, be aware that plans with high discounts may also have high usage or supply charges, which can reduce your overall savings. Also, keep in mind that energy discounts may only be available for a certain period and can expire.
To get started, you can try using comparison tools such as GoSwitch or Canstar Blue, or websites like Finder or Selectra.
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Comparing electricity plans and providers
There are a variety of factors to consider when comparing electricity plans and providers. Firstly, it is important to remember that bigger is not always better. While there are many large electricity companies with a significant market share, there are also smaller energy providers that can offer competitive deals. It is a good idea to compare offers from a range of providers, both big and small, before making a decision.
Another factor to consider is the type of energy you want to use. Gas is generally cheaper than electricity, but it is less efficient and there are moves to phase out its use in some jurisdictions. Solar energy is becoming increasingly popular, particularly in South Australia, which has some of the country's cheapest and greenest small energy retailers. If you are interested in investing in solar energy, you may be able to take advantage of solar rebates or feed-in tariffs offered by energy providers.
Price incentives and discounts are also important to consider when comparing electricity plans. The Default Market Offer (DMO) is the electricity tariff set by the Australian government to cap energy prices and help consumers compare plans. While the DMO is not always the cheapest offer, it protects consumers from exponential price increases if they choose not to engage with the energy market. Energy discounts are only available on market retail contracts, and the amount of the discount will vary across different plans and companies. Be aware that high-discount plans may also include high usage or supply charges, which can negate overall savings.
There are several comparison websites and tools available to help you find the cheapest electricity providers and plans in your area, including GoSwitch, Canstar Blue, and Finder. These tools can provide personalized recommendations based on your postcode and energy usage.
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Electricity retailers vs distributors
In Australia, there are 16 different electricity distributors providing power to the populated areas of the country. Distributors, also known as Distribution Network Service Providers (DNSP), are responsible for constructing and maintaining the infrastructure (poles, wires, stations, substations, etc.) that distributes electricity to homes and businesses. They are also in charge of reading meters and maintaining electricity network assets.
In New South Wales, there are three distributors: Ausgrid, Essential Energy, and Endeavour Energy. Each of these functions on a separate network divided by region. For example, Ausgrid supplies electricity to Sydney, the Central Coast, and the Hunter Valley.
Victoria also has five electricity distributors, each responsible for a different geographic region of the state. Citipower, for instance, serves Melbourne City and the inner suburbs, while Jemena serves the northern and southwestern suburbs.
The distributor is the company that maintains the infrastructure converting and delivering electricity. If there is a power outage or damage to energy infrastructure, such as fallen power lines, the distributor is responsible for repairing it.
On the other hand, electricity retailers are the companies that bill customers for their energy usage. Retailers offer a range of plans and prices, and customers are encouraged to shop around to find the most competitive deal. The retailer to choose from may depend on the region, as some retailers only operate in certain states or regions. For example, Nectr, OVO Energy, Energy Locals, and Sumo are some of the retailers offering reasonably priced plans.
It is important to note that the company that sells electricity is not the same as the one that delivers it. Distributors own and maintain the distribution networks, while retailers are responsible for billing customers and offering various plans and prices.
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Cheapest energy plans in Australia
Energy is an essential service for almost all households in Australia, but it can be expensive. The average quarterly electricity bill in the country sits at around $292, although this data includes households of all sizes and should be used only as a general guide. Western Australia has the cheapest electricity and gas bills, while New South Wales has the most expensive electricity, with an average quarterly bill of $443.
There are two levels to energy market deregulation in Australia: competition and price deregulation. The Australian Energy Regulator (AER) helps regulate electricity distribution networks and gas pipelines to ensure consumers get a good deal. However, when comparing plans, you will still need to consider important energy price incentives and offers. For example, the Default Market Offer (DMO) is the electricity tariff set by the Australian government to cap energy prices and help consumers compare energy plans.
When looking for a cheap energy plan in Australia, it is important to compare offers from a range of providers, both big and small. Some of the biggest energy companies in Australia include Energy Australia, AGL, and Origin Energy, which are considered leading providers for reliability and range of plans. However, there are also smaller energy retailers to choose from, and some of these offer very competitive rates. For example, South Australia has some of the cheapest and greenest small energy retailers.
There are various price comparison tools available to help you find the cheapest energy plan in your area, including GoSwitch and Energy Made Easy. These tools can provide up-to-date information on all plans from electricity retailers, saving you time on your search, and resulting in a personalised plan for saving money on energy bills.
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Energy price incentives and offers
Energy discounts are another incentive to look out for, but these are only available on market retail contracts. The discount amount is usually taken off your electricity usage costs, although some providers may discount your entire bill. Be cautious, as some high-discount plans may also include high usage or supply charges, which could negate any potential savings. Additionally, some discounts are only valid for a certain period, and failing to meet the conditions could result in a fee.
When comparing energy plans, you may come across the term "reference price". This is often shown as "X% off the Reference Price" in an energy provider's plan details. The reference price is the Default Market Offer, and energy retailers will offer their plans at a certain percentage off this standard rate.
Feed-in tariffs are another incentive offered by energy providers, particularly relevant for those with solar panels. Energy providers will usually offer a higher feed-in tariff rate for a lower discount off the reference price. The size of your solar PV system and your lifestyle should be considered when choosing a feed-in tariff rate.
Finally, it is worth noting that gas is generally cheaper than electricity, but it is less efficient and the price is on the rise. Some jurisdictions are also moving to phase out gas use, so consider this when choosing an energy plan.
By understanding these energy price incentives and offers, you can make an informed decision when choosing an electricity company in Australia.
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Frequently asked questions
The cheapest electricity company in Australia depends on your postcode and the electricity providers in your local area. Western Australia is the state with the cheapest electricity and gas bills. Some of the cheapest electricity options available in Australia include Nectr, OVO Energy, Energy Locals, Dodo, GloBird, and Red Energy.
You can use a price comparison tool such as GoSwitch or Selectra to find out which energy companies cover your area. These tools will ask for your postcode and other details to provide you with a list of energy companies and plans available in your area.
The average quarterly electricity bill in Australia is around $292, according to data from February 2023. However, this amount can vary depending on household size and consumption.
An electricity retailer is the company that bills a customer for using energy, while a distributor is responsible for maintaining the electricity supply. You would contact your electricity retailer for billing inquiries and your distributor for power supply issues, outages, or new connections.
When comparing electricity plans and providers, you can consider the following:
- The Default Market Offer (DMO) set by the Australian government to cap energy prices and help consumers compare plans.
- Energy price incentives and offers, such as discounts or carbon-neutral plans.
- The reference price or "X% off the Reference Price," which indicates how much less expensive a retailer's market offer is compared to the standard offer.
- Feed-in tariffs for solar energy, which may offer a higher tariff rate for a lower discount off the reference price.
