Average electricity bill in Australia

    The average annual electricity bill for an Australian household is approximately $1,430. Bills vary significantly by state, household size, and the plan you are on. Comparing electricity plans is the most effective way to reduce your bill.

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    Average annual bill

    $1,430

    National average

    Average rate

    Varies

    Usage rate

    Supply charge

    Varies

    Daily fixed cost

    Annual change

    ~4%

    Year on year

    Average electricity bill by household size

    The following estimates are based on national average usage rates. Actual bills vary by state, distributor zone, and the specific plan you are on.

    Household typeDaily usage (kWh)Est. annual billEst. quarterly bill
    Single person5.5$2,008$502
    Couple (no children)9$3,285$821
    Small family (3–4 people)13.5$4,928$1,232
    Large family (5+ people)18$6,570$1,643

    Estimates only. Individual bills depend on usage habits, tariff structure, and current plan rates.

    Average electricity bill by state

    StateAvg rate (c/kWh)Supply charge ($/day)Est. annual bill
    South Australia32.1c$1.12$1,580
    Western Australia28.9c$1.08$1,490
    New South Wales28.5c$1.05$1,450
    Queensland27.2c$1.00$1,420
    Victoria26.8c$1.02$1,380
    Tasmania26.2c$0.98$1,340
    Australian Capital Territory25.8c$0.95$1,310

    What affects your electricity bill

    Your usage rate (c/kWh)

    The single biggest driver of your bill. Rates vary by retailer, distributor, and state. Comparing plans can find lower rates for the same usage.

    Daily supply charge

    A fixed daily charge — sometimes called 'service to property' — that applies regardless of how much electricity you use. Supply charges typically range from $0.90 to $1.30 per day.

    Household size and appliances

    Larger households use more electricity. High-consumption appliances — electric hot water systems, air conditioning, pool pumps, EV chargers — significantly increase annual costs.

    Solar feed-in tariff (if applicable)

    Households with rooftop solar can offset consumption costs with feed-in tariff credits. Higher feed-in tariff rates reduce net bills, sometimes substantially.

    Network and distribution charges

    A portion of your bill covers the cost of maintaining the poles, wires, and local distribution infrastructure. Network charges vary by distributor and region.

    Market offer vs standing offer

    Market offers from retailers can be significantly cheaper than standing offers (default tariffs). Consumers on standing offers may be paying more than necessary.

    How to reduce your electricity bill

    1. 1

      Compare and switch plans

      Review your current plan and compare alternatives. Even moving from a standing offer to a competitive market offer can save hundreds of dollars per year.

    2. 2

      Shift usage to off-peak periods

      Running dishwashers, washing machines, and dryers at night or on weekends can reduce costs on time-of-use plans.

    3. 3

      Improve home insulation

      Draughts, poor window insulation, and inadequate ceiling insulation increase heating and cooling costs significantly. Addressing these can reduce energy consumption year-round.

    4. 4

      Upgrade appliances

      Older appliances — particularly refrigerators, hot water systems, and air conditioners — often use significantly more energy than modern equivalents. Look for high energy star ratings.

    5. 5

      Consider rooftop solar

      For households that own their home, solar panels can substantially reduce net electricity costs. Many Australian homes are well-suited to solar given the high solar irradiance across most of the country.

    Average electricity bills by state

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    Frequently asked questions

    • What is the average electricity bill in Australia?

      The average annual electricity bill for an Australian household is approximately $1,430 per year, though this varies significantly by state, household size, and the plan you are on. South Australia typically has the highest average bills, while the ACT and Tasmania tend to be lower.

    • How can I reduce my electricity bill?

      The most effective ways to reduce your electricity bill are: comparing and switching to a cheaper plan, shifting high-consumption appliances to off-peak times, improving home insulation, and installing solar panels if suitable for your property.

    • Why do electricity bills vary so much between states?

      Electricity prices vary by state due to differences in network infrastructure costs, the energy mix, market structure (competitive vs regulated), and the distance from generation sources to consumers. South Australia and Queensland tend to have higher average rates, while Victoria and the ACT are often more competitive.

    • What is a good electricity rate in Australia?

      A competitive electricity usage rate in Australia is typically below 28c/kWh, though what is "good" depends on your state. In Victoria, competitive rates can be below 25c/kWh, while in South Australia rates above 30c/kWh are common even on competitive plans.

    • How often should I compare electricity plans?

      Most energy experts recommend comparing plans at least once a year, or whenever your plan term ends. Electricity market offers change regularly, and a plan that was competitive 12 months ago may no longer be the best available.

    Last updated: 8 March 2026. Estimates are indicative only based on AER reference data.