Top 10 biggest energy companies in Australia

Fact Checked

In this guide, we’ll break down what you need to know about the big energy companies in Australia, plus list other information that may help you find a deal best suited to your household’s power needs.

You’ve probably heard about the ‘big four’ banks when it comes to finance, but what about the ‘big three’ in energy? We’re referring to Origin Energy, AGL and EnergyAustralia, which currently have the largest retail market share across the deregulated states.

There are numerous reasons why Australians are more likely to trust a household name – a wide selection of products or longer call centre hours. Regardless of the reason, bill-payers just want to know they’ve made the right decision when choosing an electricity or gas provider and many feel safe in the hands of the big guys. But just how many Aussies turn to the bigger energy companies? Find out with Canstar Blue below.

Advertisement

Compare Solar Installer Quotes

Over the last 15 years, SolarQuotes® has steadily built a network of heavily vetted solar installers. Get up to 3 free, no-obligation quotes for solar, batteries, and EV chargers.

Get Quotes Now

What are the largest energy companies in Australia?

Origin Energy, AGL and EnergyAustralia are the biggest energy companies in Australia. Known as the ‘big three’, each has a significant share in the residential electricity and gas markets of New South Wales and South Australia. While they also hold a huge combined chunk of the Victorian and South East Queensland market, their dominance has been notably reduced in recent years.

The total market share of the big three energy providers in each state can be found below.

Source: Australian Energy Regulator (AER) Retail Energy Market Performance Update for Quarter 4, 2022-23. Essential Services Commission (ESC), Victorian Energy Market Report 2022-23.

Origin Energy

Origin Energy retails electricity and gas to over 4.2 million customers, making it Australia’s largest energy retailer. Origin sells electricity in New South Wales, Victoria, South East Queensland, South Australia and the ACT, as well as natural gas in these states, plus Western Australia. The energy giant usually has approximately six market offers to choose from, all of which vary according to customers’ needs.

Origin electricity prices

AGL

Founded back in 1837, AGL Energy is Australia’s oldest energy company and services around 4.3 million accounts – both residential and business. Like Origin Energy, AGL retails electricity and gas in the same states, with the exception of electricity in the ACT. AGL tends to market three products in each state, including solar offers, all with variable rates.

AGL electricity prices

EnergyAustralia

EnergyAustralia has a portfolio of roughly 1.7 million customers throughout Australia, and has proven to be a serious contender to Origin Energy and AGL over the years. The retailer operates in New South Wales, Victoria, South East Queensland, South Australia and the ACT. EnergyAustralia currently offers four variable rate plans, including solar offers in those states.

EnergyAustralia electricity prices

What is a tier 1 energy retailer?

A Tier 1 retailer is an energy provider that has more than 10 per cent of the market share in a network region (i.e. Ausgrid or Essential Energy), which include the big 3. Tier 1 retailers also include the likes of Alinta Energy, Simply Energy and the dual ownership of Red and Lumo Energy in some network areas.

What about tier 2 energy retailers?

According to the AEMC, a Tier 2 retailer is an energy provider that holds less than 10 per cent of the market share in a network region. A decade ago, Tier 2 retailers were almost non-existent in most states, however there are more than 15 of these smaller companies today, helping increase the level of competition across the areas they operate in.

Cheap electricity deals

See how the big 3 providers compare to other retailers in terms of price. Use our comparison tool for a more accurate quote in your area.

Biggest electricity companies in Australia by market share

Here is a list of electricity retailers and their residential market share in Australia:

• ActewAGL: 2.6%
• AGL: 22.3%
• Alinta Energy: 5.5%
• Aurora Energy: 3.5%
• Dodo: 0.9%
• EnergyAustralia: 14.6%
• Energy Locals: 0.7%
• Ergon Energy: 9.5%
• Origin: 26.3%
• Powershop: 1.1%
• Red Energy: 5.7%
• Simply Energy: 2.1%

The above figures have been sourced from the Australian Energy Regulator (AER) Retail Energy Market Performance Update, 2022-23.  

If looking at these big energy companies has got you thinking about switching providers, be sure to head to our comparison tool below. Our database compares plans and prices from over 20 electricity companies in Australia and it’s absolutely free to use! Simply type in your postcode to get started.

Who are the biggest gas retailers?

According to the Australian Energy Regulator (AER), AGL, Origin Energy and EnergyAustralia represent almost 81 per cent of the residential gas market. AGL maintains the largest market share at 34.9 per cent, Origin Energy with 25.4 per cent and EnergyAustralia at 18.3 per cent. Behind these three gas suppliers follows ActewAGL (5.1%), Red Energy (4.7%) and Alinta Energy (4.0%).

Which electricity retailers are government-owned?

The following energy companies in Australia are owned by the government:

• ActewAGL: Operating in the ACT and regional parts of New South Wales, ActewAGL is jointly owned by Icon Water Limited (an ACT government owned corporation) and AGL Energy via subsidiary companies. The retail arm has more than 179,000 electricity customers, plus nearly 116,000 gas customers.
• Aurora Energy: A government-owned electricity and gas retailer operating in Tasmania. Aurora Energy provides services to around 240,000 Tasmanians and is one of only seven electricity retailers operating in the state.
• Ergon Energy: Regional Queensland customers in cities like Cairns, Mackay, Rockhampton and Townsville will likely be connected to the government-owned electricity distributor and retailer, Ergon Energy. The company supplies electricity to more than 645,000 customers in the region.
• Momentum Energy: Owned and operated by Hydro Tasmania – a Tasmanian government business enterprise and generator – Momentum Energy retails electricity to homes and businesses in New South Wales, Victoria, south east Queensland and South Australia. The retailer has a portfolio of over 200,000 customers and is known for being 100% Australian-owned.
• Red Energy and Lumo Energy: Red Energy and Lumo Energy are both retail subsidiaries of Snowy Hydro – a Federal government-owned energy generation company. Lumo and Red Energy have a combined base of almost one million customers across New South Wales, Victoria, Queensland and South Australia.

What about small business energy?

The retail market share within small business energy is dominated by the big three who service nearly 61% of customers across the National Electricity Market (NEM). For gas, it’s a similar situation, with Origin claiming over half of the market share (57.2%), with AGL holding 20.3% and EnergyAustralia coming in with 12.3 %.

Does a bigger company mean better energy deals?

Finding a great deal on energy is certainly achievable with the big three power companies, although being larger in size doesn’t automatically mean the ‘best’ or cheapest deals. It may come down to browsing a range of energy deals from multiple retailers, particularly as the industry continues to evolve and new offers enter the market. To see how the biggest energy providers compare in your area, click the link below.

Original reporting by Jared Mullane
Image Source: Crovik Media/Shutterstock