Average electricity prices in Australia per kWh
Do you know if the rate you’re paying to use electricity - the usage charge - is too much?
Knowing if you’re on the best price for the electricity you’re on is important, as it’s the usage charges that make up a large part of your electricity bill.
This article looks at the average usage cost per state or territory and distribution network, how it translates to your energy bill and explains how these prices are set.
What is electricity price per kWh?
The cost of using electricity is measured in kWh, which stands for Kilowatt-hours. ‘Kilo’ means 1,000, ‘watt’, is a measure of power and the ‘h’ stands for hour. This is the unit that electricity is measured and priced by.
Most electricity providers will charge between 25 and 45 cents per kWh, but this can change depending on where you live, or the type of tariff that you are on.
Average electricity price per kWh by state?
This research from Canstar Blue shows the average usage rate per kWh, calculated for single-rate tariffs across each distribution network in NSW, VIC, south-east Queensland, South Australia, the Australian Capital Territory and Tasmania. Research is based on plans available in the Canstar Blue database. Prices are shown in cents per kWh.
State | Distribution Network | Average Electricity Usage Rate (per kWh) |
NSW | Ausgrid | 34.0c/kWh |
NSW | Endeavour Energy | 34.2c/kWh |
NSW | Essential Energy | 37.1c/kWh |
VIC | AusNet Services | 35.2c/kWh |
VIC | Citipower | 25.1c/kWh |
VIC | Jemena | 29.3c/kWh |
VIC | Powercor | 29.8c/kWh |
VIC | United Energy | 27.9/kWh |
QLD | Energex | 32.6c/kWh |
SA | SA Power Networks | 44.3c/kWh |
ACT | Evoenergy | 28.2c/kWh |
TAS | TasNetworks | 29.4c/kWh |
Source: www.canstarblue.com.au – 09/07/2024. Average electricity usage rates are based on single-rate, non-solar only plans on Canstar’s database, available for an annual usage of 4,373 kWh.
Using kwH in real terms
While using the cost of kWh can be helpful in comparing electricity plans, you need to also consider factors like conditional discounts, which different energy retailers apply in a variety of ways to their plans.
The kWh cost will form just one part of your comparison when looking at energy plans. You can find each retailer’s electricity prices per kWh in their energy price fact sheets which will be available on their websites.
Single-rate tariffs will show a single kWh charge, while time of use tariffs will show multiple kWh charges depending on when electricity is used.
Who sets the electricity rate?
In Australia, energy companies set the retail prices of electricity per kWh. The prices are largely a reflection of the ‘wholesale’ price that each company pays for electricity.
Wholesale prices are what the providers pay to generators for the electricity, which is then sold on to their customers. Wholesale prices change often - every 30 minutes.
How often do electricity rates change?
Your electricity rates change depending on what contract you’re on - standing offer, or market offer.
Standing offer: Guarantee by law that their electricity charges won’t increase more than once every 12 months
Market offer: Can have their rates adjusted whenever, as long as they are given written notice in advance.
You can also get a fixed rate plan, which guarantees one rate for a set period of time (often one or two years).
How can I find the best electricity price per kWh?
If you’re looking for a competitive electricity product, you need to consider a number of factors, such as:
The electricity usage rate per kWh
Any discounts provided
Any perks offered by the retailer
The type and length of the contract
If it suits your household’s electricity needs
Market offer plans come in the form of variable rate plans and fixed rate plans. On variable rate plans, the retailer can adjust rates with notice, on a fixed rate plan the retailer guarantees the rate for a specific period of usually one or two years.
Comparing electricity products is free with RateCity. Enter your postcode and review your options. To make it easier, have a copy of your most recent electricity bill at hand, so you can know for sure when you’ve found a great deal.
Important Information
What is the Reference Price?
The reference price is set by the Australian Energy Regulator (AER) for a financial year in relation to electricity supply to residential customers in the distribution region and is based on an assumed annual usage amount. Any difference between the reference price and the unconditional price of a plan is expressed as a percentage more or less than the reference price. The terms of any conditional discounts are shown, along with any further difference between the reference price and the discount applied if a condition is met, expressed as a percentage more or less than the reference price.
What is the VDO?
The Victorian Default Offer (VDO) includes a daily supply charge and usage charges (per kilowatt hour). Differences in tariffs across distribution regions reflect the unique costs of providing electricity services in each area. The difference between the VDO and the unconditional price of a plan, based on the Victorian Government’s annual reference consumption for domestic customers in the distribution region, is expressed as a percentage more or less than the VDO. The terms of any conditional discounts are shown, along with any further difference between the VDO and the discount applied if a condition is met, expressed as a percentage more or less than the VDO.
NSW, QLD and SA: Price is GST inclusive and is: the estimated lowest possible price a representative customer would be charged in a year for this plan, assuming all conditions of discounts offered (if any) have been met, based on the AER’s model annual usage in the distribution region as stated at the top of each table.
VIC: Price is GST inclusive and is: the estimated lowest possible price a customer would be charged in a year for this plan, using the Victorian Government’s annual reference consumption for domestic customers in your distribution region as stated at the top of each table and assuming all conditions of discounts offered (if any) have been met.
ACT: Price is GST inclusive and is: the estimated lowest possible price a representative customer would be charged in a year for this plan, using the Independent Competition and Regulatory Commission (ICRC) annual reference consumption for domestic customers in your distribution region as stated at the top of each table and assuming all conditions of discounts offered (if any) have been met.
TAS: The price shown is inclusive of GST and is the estimated lowest possible price a representative customer would be charged in a year for this plan, assuming all conditions of discounts offered, if any, have been met.
The general usage for products displayed in the table for Tasmanian postcodes is based on the median electricity usage of customers in Tasmania. The median usages are: 2,947 kWh/year for a Single Rate tariff, and 7,428 kWh/year for a Single Rate + Controlled Load tariff. These usage assumptions are based on the latest Typical Electricity Customers in Tasmania report released by the Office of the Tasmanian Economic Regulator. If the amount of electricity you actually use differs greatly from this estimate, your bill could be significantly larger or smaller than the charges listed for each plan.
Some plans may require you to meet certain conditions before a discount may become available to you. Check the energy provider’s plan information for details of all possible discounts that may apply and any conditions that need to be met to be eligible for these discounts. Some plans may have a minimum term longer than one year. In that case the total cost over the term will be much higher than the price (which is only for one year). Consider the provider’s detailed product and pricing information before making a decision to take out a new plan or switch electricity providers.
