How to Compare Electricity Plans in Australia and Find the Best Value
Published July 23, 2026
The most cost-effective electricity plan does not necessarily have the lowest rate. The most cost-effective plan is one that matches the usage rate, daily charge, and tariff structure with how much electricity your house consumes. This can save the typical household hundreds of dollars annually, since 92% of Australian households no longer use the regulator’s stand-alone offer, but many have signed plans that have quietly risen in price since they did.
The following guide outlines how to compare electricity plans based on the official benchmark in your state, what the key metrics for electricity bills are, and how solar households are different. If you are looking for the cheapest electricity supplier Australia has to offer, these factors can help you identify which plan provides the best value for your household. Solar Choice has been providing impartial energy advice since 2008. Check the live plans in your area using the calculator below, and return here for the guide..
Who is cheapest electricity supplier? Why it depends on your location and usage
If you ask “who is cheapest?” then the straightforward answer is “it depends on your location and your usage.” An electricity retailer that ranks number one in a small inner-Sydney apartment will rank midway in a four-bedroom house with ducted air conditioning in regional New South Wales. And this happens for two reasons.
Your location. Pricing depends on the local network (your poles and wires operator) and network prices differ significantly. According to the regulatory benchmark, a typical residential customer on the Ausgrid network, located in the area around Sydney, pays about $1,899 a year, compared to about $2,604 on the Essential Energy network in regional New South Wales (AER, 2026-27).
And that’s in the same state but with a very different price tag.
When you use energy. The family who uses the dishwasher and the pool pump during the daytime needs a different tariff than the one which has its peak usage at 6pm.
Who is the DMO and VDO? The explanation of the electricity reference price
Everything compares against some point of reference. In New South Wales, South East Queensland, and South Australia, that is the DMO – Default Market Offer – annual pricing set by the Australian Energy Regulator; in Victoria there is the VDO, set by the Essential Services Commission. It limits the standing offer – that is the tariff you will be under unless you switch electricity suppliers. See the DMO/VDO as an upper limit rather than a target: only 8% of households are still under it (AER, 2026-27).
Steps to switch electricity suppliers in five simple actions
Changing your electricity supplier is independent of your power supply. Nobody is coming, nothing will be turned off, and everything will be managed between your current and future retailer.
- Look at your most recent bill and record your annual consumption in kWh, rates, and tariff type.
- Make the comparison on annual cost estimates based on reference-price percentages.
- See if there is an exit fee from your existing tariff and the end date of the benefit period from the new one.
- Switch your supply agreement to the new retailer who will then coordinate the switch.
- Determine the date of the benefit period so that you can make another comparison before the rates expire.
The expensive errors are common: going after the conditional discount instead of the lowest annual cost, choosing a tariff which does not fit your consumption pattern, assessing a solar tariff on the basis of its feed-in tariff only, and failing to make further comparisons. A yearly comparison avoids almost all of them. For further information, please refer to our cheapest electricity retailers guides in Australia.
FAQs on comparing electricity plans
There is no one retailer that is the cheapest. The value-for-money retailer varies by network location and consumption pattern and could actually change from one street to another. Compare electricity plans based on your postcode by estimating your annual cost and then using the reference price percentage to arrange them.
The DMO refers to the highest regulated price for a basic 'standing offer' in New South Wales, South East Queensland and South Australia. The Australian Energy Regulator determines the default market offer each year. It becomes effective for a year beginning from 1 July. It serves as the ceiling to be beaten but not a good deal as only 8% of the customers remain subscribed to this plan.
Yes, but only when you’re able to shift your major loads away from the times of peak prices, typically late afternoon and evenings. Time-of-use pays you back for using the dishwasher, pool pump or electric vehicle in off-peak and daytime times and requires a smart meter. When a major portion of your load falls during evening hours and cannot be shifted, the single rate is safer option.
No, because majority of the houses with solar PV system consume more electricity than they export. Thus, the feed-in tariff makes little impact on your bill. Sometimes retailers offer higher feed-in tariff along with higher electricity rates, and therefore one must consider annual cost after the feed-in payment.
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