How to reduce your power bill

How to reduce your power bill

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Are you looking to reduce your power bill? Or maybe you can’t understand why your electricity bill is so high and are looking for common culprits for hiking power costs? In this article, Canstar Blue shares some tips to help you reduce your power use.

1. Compare electricity providers

Ensuring you have the lowest usage rate and supply cost is one of the most obvious ways to slash your energy bill. That way, even if you don’t cut how much electricity you use, you should still receive a lower bill. 

Energy companies regularly change their products and prices for new customers. Although you may have received a good deal when you signed up to your current provider, it may be less competitive now. Comparing electricity plans is a quick way to check if that’s the case.

See if you can save by using Canstar Blue’s free comparison tool to check electricity plan prices. Compare usage and supply costs and weigh up whether fixed or variable rates are better for your needs. It’s important to note that plans with extras can impact the price of your electricity bill.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid energy network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

2. Install energy efficient lighting

According to the Energy Rating website, LED light bulbs use 75% less electricity than halogen light bulbs and can last up to 15 times longer. Swapping incandescent and halogen light bulbs to LED light bulbs does require an upfront financial outlay but should help reduce your power bill in the long run. Canstar Blue worked out how much running different kinds of bulbs cost depending on which city you live in, so you can see more clearly how much your lighting may add to your electricity bill.

3. Adjust the thermostat

Heating and cooling can be expensive if you’re not savvy about it. When heating, set your thermostat to between 18 and 22 degrees – each degree above can add up to 10 per cent to running costs.

In summer, set the temperature to 25 or 26 degrees. Once again, every degree below 25 can add around 10 per cent to running costs. Also, remember there are other ways to stay cool in summer without using electricity, and conversely, ways to keep power bills down in winter.

Some cheap and fun energy saving tips include using a portable battery-powered fan during the warmer months, and slipping on extra coats once the mercury drops.

4. Use cold water

According to the Australian Government’s YourHome website, hot water use can account for 23% or more of household energy usage.

Save energy on hot water by using eco settings on dishwashers and washing machines, while also using cold water washes. Scrape dishes, skip handwashing and put dishes straight into the dishwasher to avoid wasting hot water. Fill the dishwasher up before running a load and set the washing machine to the correct load size.

Shorten shower use to four minutes or less by brushing teeth at the sink with the water off while brushing. Turn the shower off while shampooing or shaving.

5. Switch off appliances at the wall

Appliances like televisions, microwaves, dishwashers and phone chargers consume electricity when on standby mode. If you keep forgetting to switch appliances off at the wall, consider buying a smart power board to stop standby electricity consumption.


How much is standby power costing you on your power bills?
Find out in Canstar Blue’s standby power cost analysis.


6. Draught-proof your home

When running your air conditioner or heater, close windows, doors and curtains to contain as much temperature as possible. Draughts can increase the cost of cooling or heating as chilly winds blow in during winter and heat invades in summer.

One of the best ways to locate draughts is to listen for whistling during windy weather, making note of which places need attention. Other ways to check for draughts include lighting a candle in an enclosed room and watching whether the flame moves with a breeze. Cheap DIY ways exist to draught-proof a home, such as using a door snake at the bottom of external doors and installing weather stripping and a metal seal with a wiper to external doors. 

If you don’t have the time or skills for more difficult draught-proofing projects, contact a professional draught-proofing company. Fireplaces, exhaust fans and roof spaces can all create draughts in homes, which a professional draught-proofer can prevent while not inhibiting their use. It’s also important to use a professional when dealing with ventilation around unflued and open-flued gas heaters, internal open-flued gas water heaters, gas heaters installed in a chimney and ducted heaters. Sustainability Victoria explains that fixed ventilation around these types of heaters is vital for safe use and recommends asking a licensed gas fitter to advise on dealing with draughts around these appliances.

7. Insulate your home

Insulation is one of the most important elements of home energy efficiency. Correctly insulating ceilings and walls reduces the amount of heat entering the home in summer and keeps warmth in during the cooler months. Installing wall insulation may be something to tackle if renovating because the internal plasterboard has to be removed for installations to be fitted into the wall cavity. However, installing ceiling insulation can be done without ripping out the ceiling, so it is an option even when not renovating.

There are online DIY guides on property insulation for those with the appropriate skillset, otherwise consult a professional insulator.

8. Invest in energy monitoring

Energy monitors provide real-time and historic electricity usage information, helping users identify when and how they use power. Particular up-market models can analyse usage patterns to detect which appliances strain your energy bill. Most electricity usage monitors that access your tariff information can also calculate how much your electricity usage is costing you and warn if you’ve exceeded a pre-set usage level. This can be handy for tracking time of use tariffs, particularly when watching for peak and off-peak times.

Compare cheap electricity plans

One of the most effective ways to save money on your electricity bill is to compare providers and consider what is best for your household.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

9. Check appliance settings

Adjusting settings on energy-hungry appliances can help reduce your power bill. For example, check that the fridge isn’t too cold. According to the CSIRO, the ideal temperature is 4 degrees for the fridge itself, and -15 to -18 degrees for your freezer. 

Use eco settings on your dishwasher, washing machine, dryer and air conditioner when possible.

10. Consider solar energy

Solar panels can help to reduce power bills. When generating your own electricity, you’re not using or paying for electricity that comes from the grid. During the day, solar panels will generate energy that is used in real time to power appliances, lights or technology around the home, with excess energy either stored in a solar battery for night usage or sold back to the grid.

It’s probably the biggest commitment on this list, and one that requires some upfront investment. However, installing solar panels can pay off long-term by reducing your reliance on the grid, thereby saving you money.

There’s a lot to consider if you want to go solar including choosing a home solar power system and size, finding a solar panel installer, and signing up to the best electricity plan for solar owners. If you’re interested in solar, finding out the costs involved is a great place to start.

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Katrina Hasdell
Energy Content Producer
Katrina Hasdell is an Energy Content Producer at Canstar Blue, where she covers Australia’s retail energy market. Katrina is dedicated to providing consumers with easy-to-read information on their energy options so they can get better deals on electricity, solar power and more.

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