Everything you need to know about fixed, variable, time-of-use, and green energy plans in Australia. Find the best plan for your home.
Compare Australian RatesAustralia has a deregulated electricity market in most states and territories, which means households can choose their own energy retailer and plan. This is a significant advantage — competition between retailers drives down prices, and switching to a better plan can save hundreds of dollars per year. Yet millions of Australians remain on expensive standing offers simply because they haven't compared their options.
Energy plans in Australia are offered under two broad frameworks: market offers (plans negotiated between you and a retailer) and standing offers (regulated default tariffs set by the Australian Energy Regulator). Most households are best served by a competitive market offer, which typically sits well below the Default Market Offer (DMO) or Victorian Default Offer (VDO) benchmark. These benchmarks exist to protect consumers and act as a reference price for comparison.
Understanding your plan starts with your electricity bill. Each bill shows your usage in kilowatt-hours (kWh), your usage rate (cents per kWh), and a daily supply charge — the flat fee for being connected to the grid regardless of how much electricity you use. Comparing these two components across multiple plans is the most reliable way to identify savings.
Australian households can choose from several types of electricity plans, each suited to different lifestyles and usage patterns. Fixed-rate plans lock in your usage rate (and sometimes the supply charge) for the duration of the contract period, typically 12 to 24 months. This provides bill certainty and protects you from price increases mid-contract, though you may miss out if market rates fall.
Variable-rate plans (also called market offer plans without a fixed term) allow the retailer to adjust your rate with notice — usually 10 to 20 business days. Rates can rise or fall in line with wholesale market conditions. These plans often start lower than fixed offers but carry more risk over a long period. Single-rate tariffs charge the same price per kWh regardless of when you use electricity, while time-of-use (TOU) tariffs charge different rates during peak, shoulder, and off-peak windows.
Time-of-use plans are increasingly common as smart meters roll out across Australia. If you can shift major appliance use — dishwasher, washing machine, pool pump, EV charging — to off-peak times (typically late night to early morning and weekend daytimes), TOU plans can deliver meaningful savings. Green energy plans allow you to match your consumption with renewable energy through accredited GreenPower certificates, typically at a small premium.
An Australian electricity bill has two core pricing components: the usage rate and the daily supply charge. The usage rate is expressed in cents per kilowatt-hour (c/kWh) and is what you pay for every unit of electricity you consume. The daily supply charge (also called the service to property charge or network access fee) is a flat daily fee — typically between 80c and $1.60 per day — charged simply for being connected to the grid, regardless of your consumption.
Beyond these two components, bills may include a solar feed-in tariff credit (if you have solar panels and export excess energy), controlled load usage rates (discounted overnight rates for hot water or slab heating on a separate meter), and GST. Conditional discounts — such as 'pay on time' discounts or direct debit discounts — can appear attractive on marketing material but are often built into an inflated base rate; focus on the base rate when comparing.
The AER's energy price fact sheet (EPFS) is a standardised document that all retailers must publish for each plan. It shows the exact usage rate, supply charge, any conditional discounts, and an estimated annual cost based on average consumption. Always use the fact sheet to make like-for-like comparisons, as it strips out marketing language.
Switching energy plans or retailers in Australia is straightforward and free in most cases. Start by gathering your last two or three electricity bills — you'll need your National Metering Identifier (NMI), your average daily usage in kWh, and your current rates. Use a comparison tool to find plans available at your address, filter by the features that matter to you (no exit fees, green energy, time-of-use), and identify the plan with the lowest estimated annual cost based on your usage profile.
Once you've chosen a new plan, sign up directly with the new retailer — online, by phone, or in person. The new retailer handles the switching process with your distributor; you do not need to contact your current retailer first. Your old retailer will issue a final bill for the period up to the switch date, and your new plan starts automatically. The physical electricity supply is not interrupted at any point.
Most households should review their energy plan at least once a year. Retailers regularly launch new plans with better rates for new customers, while existing customers drift onto default standing offers. Set a reminder to compare at the end of your contract period or annually, whichever comes first. Consistent comparison is the most reliable way to ensure you're always on a competitive rate.
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