Australia electricity price index 2026
Track electricity price trends across Australian states. This index compares average household bills, usage rates, and supply charges by state, and explains why electricity prices change over time.
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National avg bill
$1,424
Per year
Highest avg bill
$1,580
South Australia
Lowest avg bill
$1,310
ACT
Avg rate range
25.8–32.1c
Usage rate (c/kWh)
Average electricity prices by state (2026)
| State | Avg rate (c/kWh) | Supply charge ($/day) | Est. annual bill | Year change |
|---|---|---|---|---|
| South Australia(SA) | 32.1c | $1.12 | $1,580 | +2.9% |
| Western Australia(WA) | 28.9c | $1.08 | $1,490 | +3.5% |
| New South Wales(NSW) | 28.5c | $1.05 | $1,450 | +4.2% |
| Queensland(QLD) | 27.2c | $1.00 | $1,420 | +5.1% |
| Victoria(VIC) | 26.8c | $1.02 | $1,380 | +3.8% |
| Tasmania(TAS) | 26.2c | $0.98 | $1,340 | +4% |
| Australian Capital Territory(ACT) | 25.8c | $0.95 | $1,310 | +3.2% |
Source: EnergyPlans research, 8 March 2026. Estimates based on AER reference data and public market information. Supply charges represent daily fixed costs. Annual bills assume average household usage (~4,900 kWh/year).
Electricity price trends (2022–2026)
The following table shows estimated average annual bills for each state from 2022 to 2026, illustrating the direction of price change over the period.
| State | 2022 | 2023 | 2024 | 2025 | 2026 | Change |
|---|---|---|---|---|---|---|
| South Australia | $1,480 | $1,510 | $1,540 | $1,560 | $1,580 | +7% |
| Western Australia | $1,380 | $1,410 | $1,440 | $1,465 | $1,490 | +8% |
| New South Wales | $1,320 | $1,365 | $1,390 | $1,410 | $1,450 | +10% |
| Queensland | $1,290 | $1,330 | $1,370 | $1,395 | $1,420 | +10% |
| Victoria | $1,280 | $1,310 | $1,335 | $1,360 | $1,380 | +8% |
| Tasmania | $1,220 | $1,260 | $1,290 | $1,315 | $1,340 | +10% |
| Australian Capital Territory | $1,190 | $1,225 | $1,260 | $1,285 | $1,310 | +10% |
What drives electricity prices in Australia
Wholesale electricity market
Australian electricity is traded on the National Electricity Market (NEM). Wholesale prices are determined by generator bids and real-time demand, and can be highly volatile. Periods of extreme heat, cold, or generator outages cause wholesale price spikes that eventually flow through to retail rates.
Network and distribution charges
A significant portion of your electricity bill — typically 40–50% — covers the cost of poles, wires, and local distribution infrastructure. These costs are regulated by the Australian Energy Regulator (AER) and vary by distributor region.
Retail margin and operating costs
Electricity retailers add a margin to cover their own operating costs, customer acquisition, and profit. Competitive retail markets (like Victoria and NSW) tend to keep margins lower than more regulated markets.
Environmental levies and schemes
State and federal renewable energy schemes — including the Large-scale Renewable Energy Target and state-based feed-in tariff programs — add a small portion to retail electricity bills. These costs reflect Australia's transition toward a higher share of renewable generation.
Energy market reform and regulation
The AER sets reference prices (previously called standing offer benchmarks) that act as a price anchor in competitive markets. Understanding where your plan sits relative to the reference price helps you assess whether you have a competitive deal.
Historical context: electricity prices in Australia
Significant electricity price increases across most states, driven largely by network capital expenditure cycles — often referred to as the "poles and wires" era. Retail bills increased substantially in many states.
Wholesale electricity price volatility increased as coal-fired generation closures affected supply. Retail prices in some states — particularly South Australia — reached record highs during this period.
Greater competition in retail markets and policy reforms helped stabilise retail prices in some states. The rollout of the AER Default Market Offer provided consumers with a price benchmark.
The global energy market disruptions following major geopolitical events significantly increased wholesale costs. These costs flowed through to retail prices, with the AER increasing the Default Market Offer in 2022 and 2023.
Electricity prices have continued to trend upward modestly across most states, with year-on-year increases ranging from 2.9% to 5.1% depending on the state. Solar penetration and battery storage are beginning to moderate costs for households with these technologies installed.
Explore electricity prices by state
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Methodology
Average bill estimates are based on AER Default Market Offer reference data and publicly available state electricity price information. Annual bill estimates assume a typical Australian household consuming approximately 4,900 kWh per year. Supply charges are included in annual bill estimates. Figures are indicative only and individual bills will vary based on actual usage, plan selection, and distributor zone. Price trend data reflects estimated average retail bills from 2022 to 2026.
Last updated: 8 March 2026.