What's the Average Electricity Bill in Australia? (2024)
Wondering if your electricity bills match average bills for the rest of Australia? In this article, you will find what the average electricity bill is for all Australian states & major cities and the cheapest energy plans you can sign up for. Read on to keep your charges below the average electricity bill.
The average electricity bill in Australia varies drastically from state to state.
Electricity bills in Australia are lowest in New South Wales, Victoria and Queensland where we find the lowest electricity costs in Australia.
However, people living in the Australian Capital Territory and South Australia have the highest electricity costs in Australia.
Below, you can find a breakdown of the average annual electricity bill for Australians state-by-state according to the last official energy price trend report.
Here is how the average electricity bill looks like according to the Australian Energy Market Commission (AEMC) in their Annual Electricity Price Trend Report 2021:
Average Annual Electricity Bill by State in Australia - Last Official Report (November 2021)
State
Average Electricity Bill
Comparison to National Average
National Average
$1,645 / year
National Average
Sydney, New South Wales
$1,253 / year
24% Lower than the average
Canberra, Australia Capital Territory
$2,004 / year
22% Higher than average
Melbourne, Victoria
$1,290 / year
22% Lower than average
Brisbane, South-East Queensland
$1,226 / year
25% Lower than average
Adelaide, South Australia
$1,742 / year
6% Higher than average
Perth, Western Australia
$1,992 / year
21% Higher than average
Hobart, Tasmania
$2,004 / year
22% Higher average
Source: AEMC Annual Electricity Price Trend Report 2021. Western Australia report from Synergy Energy based on an average usage of a medium-usage customer with a 4 bedroom, 2 bathroom household. The largest city has been taken as a reference point for average electricity bills in each state. Fact Checked & Valid June 2022.
IMPORTANT NOTICE! - Average Electricity Bill as of August 2022
Since June, Australia has begun to experience an energy crisis with bills climbing higher than normal for most households.
In July, all energy suppliers have re-evaluate their Default Market Offer (DMO) and increased the price of their energy plans. There is still time until the next official report, so you should consider updated researches that reflect July's rate increase!
This is how the average electricity bill looks like now according to a research by Canstar Blue:
The Australian Energy market is more volatile than ever, so we suggest you use the aforementioned numbers as reference and speak to an electricity retailer or a free advisor to compare the most updated plans and rates.
Speak to a free advisor now:
1300 560 964
Speak to a free advisor now: 1300 560 964
Did you know?At the beginning of the year new reports from the AEMC showed that electricity prices were to go down in the next few years as the government attempts to tackle inflating energy costs within the National Electricity Market. However, current trends point to a price increase instead.
When looking at the average energy bill for each location, it's important to remember that the costs listed above include both the highest and lowest prices paid in each state. Therefore, Despite the prices listed for the average energy bill for each state, it is possible to find cheaper deals and pay less.
In the next section, we compare the average energy bill in each state to the lowest offers on the market.
Now that we have seen what the average electricity bills look like across Australia, let's take a look at the price-per-household size.
It makes sense that the larger your household, the larger your electricity bill will be. More people in a house usually means:
In the table below you can see the average annual electricity bill for each size household, and the breakdown of cost per person.
Average Electricity Bill by Household Size
People in Household
Average Annual Electricity Bill
Electricity Cost Per Person
1
$902
$902 / person
2
$1,221
$610 / person
3
$1,281
$427 / person
4
$1,631
$408 / person
5
$1,983
$397 / person
Source: Canstar Blue Average Electricity Bill by Household Size Feb 2021
According to a study by Canstar Blue which compared the average electricity bill by household size, across all states in Australia, adding another person to your household increases your electricity bill by about $320-$350 per year.
The smallest increase occurred within two-person households and three-person households, where average annual electricity bills only increased by $60.
Average Electricity Bill for Families With Children Families with children pay on average significantly more than those without. According to a study by Finder about the average electricity bill by the number of children. Households pay $83 more per quarter or $332 per year!
Average Electricity Bill Per Person
What is the Average Electricity Bill for One Person in Australia?
As we have seen in the table above, the average electricity bill for one person in Australia works out to be $902 per year.
As the Electricity bill is not shared with anyone else, the average cost per person works out to be $902 / person.
What is the Average Electricity Bill for 2 Person Household?
As we have seen in the table above, the average electricity bill for a 2 person household in Australia works out to be $1,221 per year.
As the Electricity bill is split between 2 people, the average cost per person works out to be $610/ person.
What is the Average Electricity Bill for a 3 Person Household in Australia?
The average electricity bill for a 3 person household in Australia works out to be $1281 per year.
If you split the electricity bill 3 ways, each person would contribute $427 toward the cost of the energy bill.
What is the Average Electricity Bill for a 4 Person Household in Australia?
The average electricity bill for a 4 Person Household in Australia is $1,631 per year.
Each person in the 4 person household would contribute $408 toward the total cost of the bill.
Average Electricity Cost in Australia ($/kWh) 2022
Knowing the average electricity cost per kWh in Australia can be a help immensely when comparing and switching electricity providers. Looking at price per kwh is the best way to compare the true cost of electricity as the price is not dependent on the amount of energy consumed.
Average electricity cost is highest in South Australia, while the cost of electricity is lowest in South-East Queensland and Victoria.
Average Electricity Cost Per kWh by State 2022
State
Average electricity usage rates per kWh
South-East Queensland
24.72c / kWh
New South Wales
28,79c / kWh
Victoria
20.83c / kWh
South Australia
36.23c / kWh
Source: Calculated average usage rates between leading electricity retailers within the NEM: AGL, Origin, EnergyAustralia and Alinta Energy. Updated August 2022
Your daily supply charge is how much your energy provider charges you to supply energy to your property. This is a fixed daily amount, in c/day, that is not affected by how much energy you use and applies to both electricity and gas supply. If you live in the National Electricity Market (Victoria, New South Wales, South East Queensland, and South Australia), your energy provider is free to set their own daily supply charge.
Average Daily Cost of Electricity Supply by State
State
Average Daily Supply Rate
New South Wales
87.83c / day
South Australia
96.79c / day
Queensland
113.06c / day
Victoria
111.58c / day
Supply charges based on average rates for six energy providers in Australia: Origin Energy, AGL, EnergyAustralia, Alinta Energy, Red Energy, and Simply Energy. Rates vary depending on location. Valid December 2021.
Average Gas Prices in Australia ($/unit) 2022
Average gas bills in Australia vary widely, depending on several factors. What you use gas for (hot water, pool heating, total-home heating, and cooking for example), the size of your home, and how many people live there can all drive up your household's average gas bills. As shown below, Western Australians enjoy some of the lowest gas costs per quarter, while those in South Australia and the ACT have some of the highest gas bills.
Below is the estimated average gas rates for each state within the National Electricity Market, based on the average natural gas rates (in cents per MJ) for the top six energy companies in the market. Your actual natural gas rates will vary depending on your location and provider.
Average Gas Prices for Natural Gas (per MJ) by State 2021
State
Average Gas Rates per MJ of Usage
South-East Queensland
4.8c / MJ
New South Wales
3.4c / MJ
Victoria
2.8c / MJ
South Australia
3.9c / MJ
Source: Calculated average gas rates between leading gas retailers within the NEM: AGL, Origin, EnergyAustralia, Red Energy, Alinta Energy, and Simply Energy. Updated December 2021
Average Gas Daily Supply Charge
Like electricity, your natural gas bill is divided into two charges, your daily supply charge and usage rates. Below is the average daily supply charge by state, in cents per day for a natural gas connection. Your actual daily supply charge will vary depending on location and provider.
Average Daily Supply Rate (Gas) by state
State
Average Gas daily Supply Rate
New South Wales
59.2c / day
South Australia
74.2c / day
Queensland
71.2c / day
Victoria
70.5c / day
Supply charges based on average gas rates for the six biggest energy providers in Australia: Origin Energy, AGL, EnergyAustralia, Click Energy, Simply Energy, and Alinta Energy. Rates vary depending on location. Valid December 2021
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How to Calculate an Electricity Bill & Save on Energy
The first step to learning how to calculate your electricity bill is understanding your bill and its energy rates.
Energy bills are divided into two costs:
your daily supply charge
your usage rates.
If you live in a part of the country where the energy market is deregulated, your energy provider is the one to set these charges.
Daily supply charge: A daily amount, in c/day, that is the cost to supply energy to your home. This is a fixed amount that doesn’t change, regardless of how much energy you use. This cost may be called a fixed charge, daily supply charge, or service charge. Daily supply charges range from 80c/day to over 120c/day. To calculate your electricity bill with this charge, you multiply the per-day charge amount by the number of days you have had an electricity supply at the property.
Usage rates: This is the amount you pay for the actual energy you use. For electricity, this is shown as c/kWh, while for natural gas it is shown as either c/mJ or c/Unit (depending on where you live). To calculate your energy bill with this charge multiply the per-day charge amount by the units of energy you used (kWh or mJ).
As we mentioned before, usage rates and daily supply charges can be fixed or variable.
If your energy plan is on a fixed rate, your usage rates and supply charges won’t change during the benefit period (usually 12 months). However, if your energy plan is variable rate, your energy provider is free to change your usage rates and supply charges when they want, with written notice to you.
Energy usage breakdown: Where is my energy going?
According to the SA Gov website, the average Australian home used almost 40% of their household’s energy consumption for heating and cooling. This includes both electric and gas heating, as well as air conditioning. In total, the average Australian household’s energy breakdown includes:
Heating and cooling: 40%
Water heating: 23%
Other appliances (laundry, entertainment): 14%
Fridges and freezers: 8%
Lighting: 7%
Cooking: 5%
Standby power: 3%
Ways to Reduce your Energy Bills
Now that you are able to compare your average electricity and gas bill compared to other residential households in Australia, you might be wondering how you can reduce your energy consumption and save money off your next energy bills.
Thankfully there are a lot of ways to reduce your energy bills, from small changes you can make today, to bigger, total-home renovations that will save you more in the long run.
Unplug: Appliances such as hair dryers, fully-charged phones or computers, appliances with continuous displays, and home entertainment systems can still drain energy from your home even when you’re not using them. These “energy vampires” might only use a small amount of electricity at one time but multiple devices and appliances, over the course of a year, can cost you lots. Unplug devices and appliances you’re not using, and start saving more immediately
Adjust the temperature: Keep your thermostat at 25 or 26 degrees in the summer, and 18 to 20 in the winter, to keep your energy bills low. Every additional degree of heating or cooling can add an additional 10% of your running costs to your electricity or gas bill.
Use cold water: Changing your laundry habits to use more cold water, and less hot water, can reduce your average energy bill. Most day-to-day laundry doesn’t need hot water to get washed and clean, and if you hang-dry your clothes, rather than use an electric dryer, you’ll save even more.
Insulate: Making sure your home is properly insulated to keep the cool air inside during the summer, and outside during the winter, can reduce your energy usage. Add draft stoppers to any door and window edges, as well as insulated curtains, or even hire a technician to come and add insulation to your home.
Go energy-efficient: Switching your appliances and light bulbs to energy-efficient options can help reduce your average electricity bill drastically. Look for “eco” or “star-rated” appliances, and LED bulbs, to keep your home energy efficient.
Switch: Shopping around for a new energy provider is a great way to reduce your electricity and gas bills. Selectra can help you find the best energy provider, no matter what you’re looking for, so you can switch providers today and save money tomorrow.
There are tons of things you can do, from small, everyday changes to drastic total-home improvements, which can help you reduce your energy consumption, and bills, and become below average (at least where electricity and gas costs are concerned).
The AEMC (Australian Energy Market Commission) has provided a breakdown of the average annual electricity bill in Australia, showcasing the average per state. As of December 2021, the Australian average electricity bill is $1,645 / year.
Naturally, the more people that live in a home, the more energy is used. On average, one person uses 909 kWh per month. If you have at least two people living in the home, that equals 1,818 kWh per month. The average American household contains four people, which equals 3,636 kWh per month or 43,632 kWh per year.
They use gas for hot water, cooking and heating. They use electricity to run the dishwasher, clothes dryer, three computers, an LCD TV and air conditioning. Household C consumes 5,000 kWh per year or approximately 13.7 kWh per day.
How much electricity does the average person use per month? The US Energy Information Administration (EIA) states that the average US citizen uses an average of around 909 kWh of energy per month, which equates to around 10,909 kWh per year.
When compared against other countries using a purchasing power exchange rate, Australian average prices per kilowatt-hour are equivalent to 17.6 US cents (c/kWh), well below the OECD average cost of 24.2 US c/kWh and less than many European countries.
Households in Victoria and Queensland generally pay the lowest prices per kWh. It's important to realise that the price you pay per kWh is only a fraction of your electricity bill.
The Department of Energy estimates you could save 10% every month when you unplug appliances when not in use. Unplugging appliances can save electricity, so make it as much a habit as when you turn off the lights to conserve energy.
Modern TVs use, on average, 58.6 watts when in On mode and 1.3 watts in standby mode. The power consumption of modern TVs ranges from 10W to 117W (0.5W to 3W on standby). On average, TVs consume 106.9 kWh of electricity per year, costing $16.04 annually to run in the US.
On average, in the US, it costs $1.34 per month ($16.04 annually) to run a TV. Per day, assuming the device is in On mode only, it costs 21 cents to run a TV (0.0088 cents per hour). This is based on the average unit rate of electricity in the US (i.e. 15 cents).
Heating and cooling combined use the largest amount of energy in the average Australian home. They account for around 40% of household energy use according to YourHome.gov.au.
For our calculations we have used the following annual energy usage amounts which are based on industry figures: 1 or 2 bedroom house/flat - gas usage of 8,000kWh and an electricity usage of 1,800kWh. 3 or 4 bedroom house - gas usage of 12,000kWh and an electricity usage of 2,900kWh.
That means the average household electricity consumption kWh per day is 28.9 kWh (867 kWh / 30 days). Customers in some areas, like Texas, consume even more. The average annual household electricity consumption for a Texas home is 14,112 kWh.
In 2021, the average annual electricity consumption for a U.S. residential utility customer was 10,632 kilowatthours (kWh), an average of about 886 kWh per month.
Meanwhile, collaborative database Expatistan estimates the current cost of living for a single person in Australia is actually an eye-watering $3,700 per month. (Yikes!)
To live comfortably in Australia, a household's income should be AUD$50,000 or greater. However, the lowest-paid workers in Australia earn around AUD$20 an hour, while the highest-paid workers can earn up to AUD$136 an hour.
A single person estimated monthly costs are 857$ (1,365A$) without rent. Cost of living in Australia is, on average, 6.66% lower than in United States. Rent in Australia is, on average, 30.17% lower than in United States.
Why are energy prices are getting so high? Australia is a net exporter of gas and coal. This means we export most of our fossil fuels overseas. As the global price of coal increases, the cost of generating domestic electricity from coal is increasing.
Australia exports most of its fossil fuels including coal and gas, overseas. Since coal and gas (as well as oil) prices are increasing worldwide, and transportation costs are going up, the electricity-generating cost from these fossil fuels is rising.
Most retailers in Australia charge around 25 cents to 40 cents per kWh, with rates varying from state to state. The highest average price per kWh is in South Australia.
From 1 July 2022, the DMO prices in New South Wales, south-east Queensland and South Australia will increase for households (between 1.7% and 8.2% above inflation) and small businesses (0.2% and 13.5% above inflation), largely due to significant rises in wholesale electricity costs over the past year.
Gas is a cheaper and more energy-efficient choice, while electric heaters are cheaper to buy upfront and can still be efficient if you are using a renewable energy source.
Whether it's your washing machine or dishwasher, some energy suppliers offer cheaper tariffs if you run your appliances during off peak times, when fewer people are demanding energy supplies. While peak hours will vary slightly by area, it's a great way to save money and keep those bills down.
Off-peak times vary slightly depending on the supplier, but they are usually between 10pm and 8am. This is when the least energy is taken from the grid and so energy suppliers can afford to offer cheaper prices. Peak time is during the day.
Cell Phones use approximately 2 to 6 watts when charging, while a charger left plugged in without a phone will consume 0.1 to 0.5 of a watt. Charging an iphone or android phone under normal use conditions will typically cost under a dollar for a full year.
When a device is left on standby, it still receives power from your electricity socket to allow it to continue running at a low level. For example, when it comes to your television, leaving it on standby means it is still drawing power so it can respond to signals from the remote control.
In fact, wet appliances account for nearly 10 per cent of a typical household's energy bills. While there's going to be no return to the days of the wringer, there are options to consider to cut washing expenses and emissions.
Switching off your TV when not in use will do more to reduce energy usage than anything else. Manufacturers have improved standby efficiency - in most new TVs energy usage is typically below 1 watt - so this is an option if you have a new TV, but if you have an older model, this mode may be using energy unnecessarily.
The average-sized microwave oven uses about 215 kWh of electricity per year. In terms of energy usage, the average microwave's wattage ranges from 600 to 1,500 watts. But, because these appliances are only used for short periods of time, their overall yearly energy use is lower than what their pull would suggest.
The largest electricity consumer in the average household is your heating and cooling appliance. By a long shot. Central air conditioners and heaters use tons of energy in order to keep your home set to the right temperature.
Let's say you have a 60-watt incandescent lightbulb and you are paying 12 cents per kWh of energy. Leaving the bulb on the whole day will therefore cost you: 0.06 (60 watts / 1000) kilowatts x 24 hours x 12 cents = approximately 20 cents in one day.
For single-person households the average monthly cost sits around $74 per month, two-person households average at $89 per month and four-person households average at $108 per month.
Australian Capital Territory. Unlike the rest of Australia, Canberra regulates its electricity rates. The most crucial benefit of government regulation is price control, so customers generally pay less for power in the ACT.
Ignatieva: A combination of short and longer-term economic, political and weather-related events have led to the high energy prices in Australia. Australia exports most of its fossil fuels including coal and gas, overseas.
To live comfortably in Australia, a household's income should be AUD$50,000 or greater. However, the lowest-paid workers in Australia earn around AUD$20 an hour, while the highest-paid workers can earn up to AUD$136 an hour.
Family of four estimated monthly costs are 3,064$ (4,918A$) without rent.A single person estimated monthly costs are 851$ (1,367A$) without rent. Cost of living in Australia is, on average, 7.40% lower than in United States. Rent in Australia is, on average, 30.38% lower than in United States.
Meanwhile, collaborative database Expatistan estimates the current cost of living for a single person in Australia is actually an eye-watering $3,700 per month. (Yikes!)
From 1 July 2022, the DMO prices in New South Wales, south-east Queensland and South Australia will increase for households (between 1.7% and 8.2% above inflation) and small businesses (0.2% and 13.5% above inflation), largely due to significant rises in wholesale electricity costs over the past year.
The October 2022 Report uses the U.S. Energy Information Administration's data from July to show that Utah residents paid the lowest electricity bills in the country on average. On the other side, Hawaii residents paid the highest electricity bills of any state.
Australians – particularly those who live in the eastern states of South Australia, Queensland, New South Wales, Victoria and Tasmania, which together make up the National Electricity Market (NEM) and account for 86% of the country's population – pay some of the highest residential electricity bills in the world.
To help households with higher energy bills, the government announced some measures to partly help with the steep rise in March 2022, with further measures announced in May 2022: There will be a £400 credit on electricity bills this winter through 6 monthly instalments starting in October.
Gas is charged per MJ (megajoule) of gas used, and as with electricity there is a daily supply charge as well, however, these are generally lower for gas customers. ... Gas running costs.
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