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Understanding electricity in Australia

This section helps you understand how electricity prices work, how to compare energy plans, and how to switch providers in Australia.

How electricity prices are calculated

Your electricity bill is made up of a daily supply charge (fixed cost) and usage charges (cents per kWh). Retailers set these rates within limits set by the Australian Energy Regulator (AER), including the Default Market Offer (DMO) in most states. Prices vary by distribution zone, retailer, and plan type (e.g. fixed vs variable). Understanding these components helps you compare plans like-for-like. For detailed methodology, see our research methodology and our electricity prices by state.

How to compare energy plans

To compare energy plans effectively, check the same usage level (e.g. 4,000 kWh per year), the same tariff type (single rate, time-of-use, or demand), and include the supply charge. Use our comparison tool to see current offers from retailers in your area. You can also review state-level electricity prices and read our energy guides for tips on finding a better deal.

How to switch electricity providers in Australia

Switching electricity providers in Australia is straightforward. Compare plans using our tool or the government's Energy Made Easy (or Victorian Energy Compare) website, choose a plan, and sign up with the new retailer. They will organise the switch with your distributor; there is usually no physical change to your meter or supply. Most switches complete within a few business days. There are generally no exit fees on standard variable plans, but check your current contract. For help or questions, contact us.