Electricity is an indispensable aspect of our daily lives, powering everything from household appliances to personal devices. However, there are many households in Australia that are overpaying due to non-competitive or outdated plans.
Over 80% of Australian households in the NEM (National Electricity Market) are reportedly paying more than necessary! With approximately 8.3 million households nationwide, this means around 6.6 million could be saving significantly by switching to more affordable electricity rates.
Are you one of them? Cut unnecessary costs immediately! Check out our compressive guide to comparing electricity plans in Australia and switch to a better plan that saves you money while meeting your energy needs.
Electricity Plans in Australia Explained
Understanding electricity plans can be difficult, with multiple factors influencing the overall rates. Here’s a breakdown of the major elements to help you navigate your options –
- Usage Charges
This is the cost kWh (per kilowatt-hour) of electricity consumed. The costs might differ between 25 and 45 cents per kWh, based on your state or electricity tariff.
- Supply Charges
It is a fixed regular charge for maintaining your electricity connection to the grid, irrespective of how much energy you use.
- Tariff Types
Flat Rate Tariffs: A consistent rate per kWh, regardless of the time of day.
Time-of-Use Tariffs: Varying rates based on the time of day, with peak as well as off-peak periods.
Controlled Load Tariffs: Specific rates for appliances such as electric hot water systems that usually operate during set hours.
A Guide to Electricity Rates in Australia
Before choosing from affordable electricity rates, it's crucial to understand that costs in Australia differ significantly across territories and states due to factors such as distribution costs, government policies, and the energy mix.
On average, electricity rates range from 25 to 45 cents per kilowatt-hour (kWh), with regular supply charges between 93 and 107 cents. You should understand these costs to determine whether you are overpaying and figure out potential savings.
Important Factors That Influence Electricity Rates
Here are some key factors, which influence the variations in electricity rates across Australia –
- Location: Different locations have varying infrastructure and energy generation costs, contributing to price differences.
- Usage Patterns: The overall amount of electricity you use and when you utilize it can impact your costs, particularly under time-of-use tariffs.
- Market Competition: Areas with more energy providers usually have more competitive pricing, providing better deals to consumers.
- Government Regulations: State and federal policies that include subsidies and rebates, can influence electricity rates and offer opportunities for savings.
Compare Household Electricity Plans Following These Steps
Your goal is to save extra bucks and our motto is to help you avoid overpaying. Follow these steps to ace the deal and secure a more affordable electricity plan –
- Analyze Your Electricity Usage
Start by reviewing your current electricity bills to understand your daily consumption patterns. Note your quarterly or average monthly usage in kWh and figure out any trends like higher usage during certain seasons. Backed by this information, you can easily select a plan that perfectly aligns with your requirements.
- Understand Different Tariff Structures
When you compare household electricity plans, ensure that you familiarize yourself with common tariff types, such as the followings –
- Single Rate: A consistent rate per kWh, irrespective of the time of day.
- Time-of-Use: Rates differ based on the time of day, with shoulder, peak, and off-peak periods.
- Demand Tariffs: Charges are mainly based on the peak usage, encouraging even consumption.
Understanding the aforementioned structures will help you choose from more affordable electricity rates that complement your usage needs or habits.
- Rely on Government Comparison Tools
Another effective way to compare household electricity plans is by relying on these free, independent tools offered by the Australian Government to compare different energy plans –
- Energy Made Easy: Covers QLD, NSW, TAS, SA, and ACT
- Victorian Energy Compare: Exclusive to Victoria
These platforms enable you to enter your usage details and compare available electricity plans in your area.
- Compare Offers from Several Providers
To compare household electricity plans more effectively, you can count on commercial comparison websites such as iSelect, Compare the Market, etc. With a broader market view, these platforms can help you find more exclusive deals.
- Evaluate Contract Terms
Read the terms and conditions of any potential plan. Consider paying attention to the following –
- Contract Length: Check whether there is any lock-in period and an associated exit fee.
- Discounts and Incentives: Don’t forget to look for sign-up bonuses, direct debit incentives or pay-on-time discounts.
- Fees and Charges: Beware of any additional fees like paper billing charges or late payment penalties.
- Consider Green Energy Options
If environmental impact is a major concern, explore plans that provide carbon offsets or renewable energy options. There are some providers that offer GreenPower accredited plans, enabling you to support renewable energy generation.
- Contact Providers Directly
Once you've shortlisted a bunch of electricity plans, contact the providers to confirm details and inquire about any additional flexibility or offers. Direct interaction is always better as it can give you a more accurate insight into their services.
- Track Your Bills Regularly
After switching, keep a tab on your electricity bills to ensure the new plan delivers the expected savings. Regular tracking helps you stay updated and prepared to switch again if a better deal emerges.
State-Wise Average Electricity Rates
Understanding the average electricity rates in your state can offer a benchmark to compare household electricity plans. The following chart illustrates the average electricity rates per kWh across different states in Australia –
State/ Territory Average Rate (Cents per kWh)
| New South Wales (NSW) | 25-30 |
| Victoria (VIC) | 20-25 |
| Queensland (QLD) | 25-30 |
| South Australia (SA) | 35-45 |
| Western Australia (WA) | 30-35 |
| Tasmania (TAS) | 25-30 |
Maximize Savings, Minimize Costs by Slashing Your Electricity Bills
So, what are you still waiting for? Imagine being able to save more money instead of losing it to your electricity bills. Follow these simple tips to start saving today. Regularly tracking and comparing your electricity plans help you take charge of your expenses. With the energy market evolving at a breakneck pace, today’s best deal might not last!
So, stay updated, take control, and stop overpaying for good!