Average electricity prices in Australia per kWh

Fact Checked

We all know that the more electricity you use, the higher your power bill will be – but how do you know if the usage rate you’re paying is too much?

Usage charges can make up a significant proportion of your electricity bill, so it’s important to read your energy price fact sheet and make sure you’re receiving the best price. Canstar Blue has taken a look at what makes a good cost for electricity per kWh, including calculating the average cost per kWh in each state.

Australian electricity prices per kWh by state and territory

The cost of using electricity is generally referred to as a ‘usage charge’ or ‘usage rate’. These charges are measured in kilowatt-hours (kWh), with most electricity retailers charging between 25 and 45 cents per kWh, depending on your state and electricity tariff.

Electricity usage rates vary from state to state, and even within different parts of the same state. There are a number of reasons for this, but for the purposes of this article it’s enough to know that the average price of electricity per kWh in Victoria won’t be the same as in New South Wales.

Below, Canstar Blue has calculated the average usage rate per kWh for single-rate tariffs across each distribution network in NSW, VIC, south-east Queensland, South Australia, the Australian Capital Territory and Tasmania, based on plans available in its database. Prices are shown in cents per kWh.

Source: www.canstarblue.com.au – 17/10/2024. Average electricity usage rates are based on single-rate, non-solar only plans on Canstar’s database.

South Australians, on average, pay the highest electricity prices per kWh, in addition to often missing out on big discounts and bonus perks. In comparison, households in VIC, TAS and the ACT generally pay the lowest prices per kWh.

It’s important to realise that the price you pay per kWh is only a fraction of your electricity bill. Another contributor to your power bill is the fixed or supply charge – a daily fee that applies regardless of how much electricity you’ve used, if any. You’ll also want to factor in the impact of discounts on your electricity costs – while some discounts just mask terrible rates, there are plenty of energy deals with big discounts that really do offer genuine value.

What does the cost of electricity per kWh look like in real terms?

Comparing kWh costs between providers and plans is important when looking for a good electricity deal. However, the extra complication of conditional discounts can make finding the cheapest option a challenge, especially when the way discounts are applied is not standard across the board. For example, some providers only apply their discounts to usage rates, while others include both usage and supply charges.

To help you turn typical kWh usage costs into actual cost estimates, consider the following tables where we show some of the cheapest deals on our database for a selected postcode in each state. Use our free electricity price comparison tool for specific quotes in your area.

NSW electricity prices

Victoria electricity prices

SEQ electricity prices

SA electricity prices

Where do I find a retailer’s electricity prices per kWh?

Retailers are required to publish the exact details of their products in their energy price fact sheets, including a plan’s electricity prices per kWh. In NSW, SA, QLD, TAS and ACT, these sheets are called Basic Product Information Documents; in VIC, it’s called a Victorian Energy Fact Sheet. In these documents, you will find all the details you need to make an informed decision about that retailer.

Energy price fact sheets are available from your retailer’s website, as part of your welcome pack after you sign up to a plan, or by searching through plans on comparison sites such as Canstar Blue or the government’s Energy Made Easy. While energy price fact sheets can differ between states, the details about electricity usage costs per kWh usually appear at the top of the page. The below example from a GloBird price fact sheet shows how usage rates per kWh are displayed.

Be sure to focus on the electricity usage rates that include GST, as this will be what you actually pay. If you have a  flexible pricing tariff, your fact sheet will also show the varying usage charges based on time of use or block rates – you can see this further down the page on the example GloBird fact sheet.

Who sets electricity usage rates?

Electricity usage charges are deregulated in most states, which means energy companies like AGL and Origin set the price of electricity per kWh. Retailers don’t set prices arbitrarily however; rather, their prices largely reflect the ‘wholesale price’ of electricity.

The wholesale price is what electricity providers pay generators for electricity, which retailers then on-sell to everyday customers. Wholesale prices change every 30 minutes. Because there are limitations on how and when electricity companies can change their prices, retailers try to predict how the wholesale price will behave when setting their per kWh electricity prices.

How often do electricity usage rates change?

Electricity rates generally change every 12 months for most customers, though it depends on whether you’re on a standing offer or a market offer. Customers on a standard contract are guaranteed by law that their electricity charges won’t increase more than once every 12 months. On the other hand, customers on a market offer may technically have their rates adjusted at any time, provided they’re given written notice in advance.

The electricity contracts we’ve just described are referred to as ‘variable rate plans’, meaning your electricity retailer can vary your rates as they see fit. The much less common alternative is called a fixed rate plan. Customers on a fixed rate plan receive a guarantee that their electricity prices won’t increase for a fixed period of time – usually one or two years. Only a handful of retailers currently offer fixed rate deals, and while they may be more expensive upfront, they can potentially save you in the long term if power prices climb.

Are electricity rates all you should be looking at?

Absolutely not. If electricity rates are the only factors you’re mindful of, then you could be missing out somewhere else. It would be like buying a car straight from the dealership at the asking price without seeking any extras or customer incentives. In the world of energy, it’s a similar situation, where price alone is just the starting point. Here’s a few features to look out for in an energy plan to get the best overall value.

• Discounts: Typically apply to usage or usage and supply rates for a period of time. Some discounts may only apply if certain criteria is satisfied, like paying on time or setting up direct debit payments.
• Bill credits: Some retailers offer credits off bills to customers who sign up online or bundle their utilities with the same company, such as electricity and gas, or even internet. Energy bill credits are either a once-off or ongoing feature.
• Rewards programs: Energy providers like AGL, Alinta Energy and Lumo Energy offer exclusive deals to customers in partnerships with various companies. Some rewards include frequent flyer points, shopping vouchers and movie tickets.
• Entertainment packages: Whether it’s a subscription to a sports streaming service or tickets to a zoo, many entertainment features can be unlocked with some plans. Keep in mind these offers change quite frequently.
• Customer service: Last but certainly not least, don’t sacrifice customer service as you may regret it should you ever need to get in contact. Look at call centre hour availability as well as smartphone apps and website functionality.

How do I find a plan with the best electricity price per kWh?

When comparing electricity products, it’s important to consider more than just big discounts or low usage rates. If you’re looking for good deal on energy, you should balance a range of considerations including rates, discounts, perks and any additional contract terms.

Canstar Blue’s electricity comparison tools allow you to search for the cheapest or best value plans available in your postcode. Use our search to see which electricity plans offer the lowest average annual cost, as well as extras such as discounts, solar feed-in tariffs or EV inclusions.