Cheapest Electricity Plans

Every electricity bill in Australia is made up of two core charges. Your usage charges cover the actual power you consume, measured in kilowatt-hours (kWh), and are billed at a per-kWh rate set by your retailer. Your daily supply charge covers your network connection costs and appears as a fixed daily fee on every bill.

The Australian Energy Regulator sets a reference price known as the Default Market Offer (DMO), which acts as a pricing benchmark across the energy market. Retailers must show how their plans compare against this reference price, making it easier to spot a genuine deal. Market offers from retailers often sit below the DMO and include GST in all advertised electricity prices.

No single electricity provider holds the cheapest rate for every household. Electricity plans are priced differently by each energy retailer based on your postcode, tariff type, and usage, so the best deal in Brisbane may not be the better deal in Adelaide.

If you haven’t reviewed your plan recently, you may be on a standing offer, which is a basic plan that sits at or near the Default Market Offer reference price. Market offers from retailers regularly come in below this benchmark and often include perks for new customers, such as a bill credit or conditional discounts during a set benefit period.

The table below shows indicative market offer pricing by state based on estimated annual cost for a typical residential household.

Figures are indicative, based on AER and Essential Services Commission benchmark data for standard residential usage. Enter your postcode on GoSwitch to compare live pricing for your specific area.

The cheapest tariff type depends on when and how you use power, not just the headline cents-per-kWh rate. Two households on the same street can pay very different amounts simply because of when they run their appliances. Understanding the four main options helps you match your energy usage to the structure that actually costs you less.

• A single rate tariff, also called a basic plan, charges one flat rate per kWh at all hours. It suits households with consistent electricity usage and small business customers who need a predictable energy bill.
• A time of use tariff splits the day into peak, shoulder, and off-peak periods at different rates. Households that can shift usage to off-peak hours, like running appliances overnight, can cut their annual kWh costs noticeably.
• A controlled load tariff applies a lower off-peak rate to high-draw appliances on a dedicated circuit, most commonly electric hot water systems, reducing that portion of your electricity usage without affecting the rest of your plan.
• A demand tariff charges based on your highest usage spike during a set peak window each month, rewarding households that stagger appliance use to avoid simultaneous draws on the network.

The average electricity bill in Australia varies by state, household size, and electricity usage, but the Australian Energy Regulator publishes annual benchmark figures that give residential customers a reliable starting point for comparison.

The table below shows the AER’s current reference price benchmarks by state for a typical residential household, inclusive of GST.

These figures represent the maximum a retailer can charge on a standing offer for a typical residential customer. Many market offers sit well below these benchmarks, which is why reviewing your energy bill against the reference price for your state is the clearest way to tell whether you’re overpaying.

Every electricity plan includes two core costs: usage charges billed per kWh, and a daily supply charge, a fixed connection fee applied regardless of how much power you use.

A plan with a low usage rate but a high daily supply charge can cost more annually than one with slightly higher usage charges and a lower supply charge. Always compare estimated annual cost across electricity plans, not just the headline energy rate.

Hidden fees can also inflate what appears to be a cheap energy plan. Watch out for:

• Paper bills fees, charged by some retailers for printed statements instead of digital billing
• Credit card surcharges, applied when you pay by card rather than direct debit
• Late payment fees, added when bills are not paid by the due date

Setting up direct debit removes the credit card surcharge and late payment risk, and some retailers offer a small conditional discount for customers who pay this way. Always check the full fee schedule on a plan’s fact sheet before switching.

Bundling electricity and gas plans under one energy provider can come with a bill credit or discounted usage rate, but it does not always deliver a better deal than two separate plans. Natural gas availability varies by suburb and state, so bundling is not an option for every household.

Where it is available, retailers including AGL, Dodo, and Powershop offer dual-fuel plans. Always compare the estimated cost of a bundle against standalone electricity and gas plans separately before committing. GoSwitch compares both options side by side so you can see which combination is genuinely cheaper.

Eligible residential customers across Australia can access government rebates that reduce what they pay on each energy bill. Eligibility varies by program and state, but most rebates require a valid concession card, a Health Care Card, or a qualifying Centrelink payment.

Current rebates by state include:

• NSW – The Low Income Household Rebate provides up to $285 per year, and the Family Energy Rebate offers up to $180 per year for eligible households. Both are applied directly to your electricity bill.
• VIC – The Annual Electricity Concession provides eligible concession cardholders with $230.65 per year, applied as a daily credit on their electricity bill. The Utility Relief Grant provides up to $650 per utility type in a two-year period for households in temporary financial hardship.
• QLD – The Queensland Electricity Rebate provides $386.34 per year (GST inclusive) for eligible concession cardholders, credited quarterly to their electricity bill.
• SA – The Cost of Living Concession provides an indexed annual payment to eligible SA households, with the 2025-26 amount published by ConcessionsSA each July.

Households with solar panels can also reduce their energy bill through a solar feed-in tariff, which credits exported renewable energy back against what you owe. Some retailers offer GreenPower options, allowing residential customers to offset their electricity usage with accredited renewable energy sources.