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What is the average electricity bill?

Mark Bristow avatar
Mark Bristow
- 8 min read
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Receiving a power bill and asking the inevitable question of “how does it cost that much!?” is probably a regular activity every quarter for household bill payers.

While the bill is most likely an accurate representation of the electricity used in that quarter, it can help to know what the average electricity bill looks like, and how to compare electricity plan options, to reduce any stress, or even help you switch to a cheaper plan altogether.

In this article, we will:

  • Use research data from Canstar Blue to understand the average electricity bills across states and territories, household size, and age group.

  • Look at what impacts electricity bills

  • Discuss ways to make sure you’re getting better than the average electricity billRemember this is a guide only - if you  have any questions about your individual bill, it may be best to reach out directly to your provider.

  • The information supplied below is from a survey finalised in 2023, and calculated as an average of estimated quarterly bills based on each survey respondents’ latest bill. Therefore, the average quarterly bill sums referenced may not reflect current energy pricing and billing. Please use the below information as a general guide only. If you have any questions about your energy bill, contact your provider directly.

Average electricity bill in Australia

According to Canstar Blue’s survey of more than 4,100 households, conducted in December 2023, the average quarterly electricity bill varies from $297 - $372, depending what state or territory you’re in.

State

Average Quarterly Electricity Bill

New South Wales

$345

Queensland

$315

Victoria

$320

Western Australia

$296

South Australia

$352

Tasmania

$372

ACT

$321

Source: Canstar Blue research, December 2023. Northern Territory excluded due to insufficient data. Please note these costs include households of all sizes and should only be considered as a general guide. 

Average electricity bill based on size of household

The size of your household can determine your electricity bill, although how one person uses electricity could be very different to another.

Based on Canstar’s Blue’s research, the difference between a one person household, and a household with 5 or more people, differs by just over $30.

Household size

Average Quarterly Electricity Bill

1 person

$307

2 people

$323

3 people

$345

4 people

$358

5 or more people

$338

Source: Canstar Blue research, December 2023.

Average electricity bill based on age

According to Canstar Blue’s research, the age group that has the most expensive electricity bill is between 30 - 39 years old, and those with the least expensive are 70 years or older.

Household size

Average Quarterly Electricity Bill

18 - 29 years

$366

30 - 39 years

$376

40 - 49 years

$366

50 - 59 years

$358

60 - 69 years

$309

70 years or more

$268

Source: Canstar Blue research, December 2023.

What impacts electricity bills

While each household will have different needs, and therefore different requirements for electricity, there are two main things that determine the price of your electricity bill.

  • How much electricity you use: Fewer people means a household will typically use less electricity, but that might not always be the case. If appliances - such as air con, clothes dryers or dishwashers - are not energy efficient, are used a lot, or used at a more expensive time of day to use electricity (if you are on a time of use tariff), then they could end up costing more.

  • How much you pay for electricity: A great deal on electricity means you’ll pay less for what you use, resulting in lower quarterly bills. 

Reducing your electricity bill is about cutting down on your electricity use, but also making sure you’ve got a competitive energy plan.

Many electricity providers will include information with your bill to help you understand your bill more easily. This includes detailing how much electricity you used and when and comparing your usage to customers in your area.

Getting better than average

If your energy bill is close to the average, then you may be reassured. However, while being close to average is good, there could be savings to make by moving closer to the cheaper options available for you.

It’s also worth remembering that average bill prices are based on a number of assumptions about usage, and don't take  individual house sizes or usage habits into account.

If you want to save on your energy bill, then it can help to compare prices from other providers offering similar plans. Keep your most recent energy bill available so you can compare more accurately.

There could be a plan that gives you cheaper rates for the same service, which means you could save. If you find a plan that looks right for you, then switching providers is easy and can be done online in a few steps.

Regular review makes for regular savings

Putting in time to do a regular review of your bills can help you to stay organised and stay on the most competitive plan for your household.

Getting a good deal does take a bit of time and effort, but if you want to be better than average, then it could be well worth it.

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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.

This article was reviewed by External Comms Lead Eden Radford before it was published as part of RateCity's Fact Check process.