Powering Your Home: A Look at Average Electricity Bills Across Australia
Published November 17, 2025
If you’ve looked at your electricity bills lately, you’ll know that you have to pay a daily access fee as well as pay for the energy you use. Usage costs are not the only factor to be focused on, and that’s what we are going to break down for you in this article. Understanding the average electricity bills across Australia is key to managing your household budget and finding potential savings.
The cost of using electricity is usually referred to as a ‘usage charge’, which is measured in kilowatt-hours (kWh). Depending on which state you’re in, most electricity providers throughout Australia charge anywhere between 25-45 cents per kWh, but these rates can vary. Electricity prices are dictated by several factors, including:
- Your address and which company distributes energy to your area
- Type of tariff subscribed to, such as a single rate or time of use
- Your total electricity consumption
It pays to understand your usage charge, as it may comprise a big part of your electricity bill. Revisiting your energy price fact sheet is a way to ensure that you are on the best price per kWh. But what is a good price? And what is the average cost of electricity in Australia? Let’s explore below.
What is the average price per kWh in Australia?
Electricity usage rates may vary greatly between states, or even regions within a state. This can depend on several factors like the distribution networks and available plans.
Electricity prices may differ significantly from state to state and even within regions of the same state. The highest average per-kilowatt-hour rates are experienced by South Australians, while Southeast Queenslanders usually have the lowest price per kilowatt-hour.
It’s important to bear in mind that the price per kWh is only part of your electricity bill. Fixed or supply charges, which apply irrespective of your energy usage, also contribute considerably to your bill. Additionally, discounts can play a significant role.
Why do some states pay more?
Residents of South Australia may feel annoyed to discover that they are charged significantly higher for electricity than those in South-East Queensland, where the average rate is 14.68c/kWh lower than in that area.
However, the government gives concessions to lessen or alleviate high electricity costs.
Several factors determine variation in electricity prices even before the consumer gets their energy bill:
- Generation: Generally, renewable sources are cheaper to operate; however, they cannot always meet the overall demand for energy. Hence, many states are forced to use more expensive coal and gas plants to complement the demand. South Australia leans on wind power as the most utilized source, followed by gas rather than coal since gas is pricier.
- Network: Distributors are required to maintain the infrastructure such as poles and wires that carry the electricity supply. These network charges can constitute a major component of the overall energy bill.
- Retail mark-ups: Added by energy retailers in energy plans to cover their costs and generate profits, within the regulated limits.
Who determines how much we pay for electricity?
Electric rates are determined in most states by energy companies, such as AGL and Origin, as usage charges are deregulated. These rates are not arbitrary; they are largely based on the wholesale price of electricity.
This is the wholesale price that a generator is paid for power, which the retailers then sell to consumers. Since wholesale prices change every 30 minutes, the retailers must predict these changes when they set their prices.
For most customers, their rate of usage for electricity changes once per year, although this depends on a person’s type of contract.
For customers on a standing contract, the law protects them against more than one rate increase every year, while those customers on a market offer may have variations at any time, provided they are given written notice in advance.
How do I find the best electricity rates?
A visit to our website already places you well on your way toward finding a perfect deal in electricity. While big discounts or low usage rates have a way of dominating the comparison of electricity products, there are several important factors to consider when selecting your ideal deal in electricity.
When searching for a new deal, consider weighing rates, discounts, and perks, as well as any additional terms of the contract. It is also worth considering which energy company gives priority to customer satisfaction.
You can get connected today with the best possible plan for your location and budget by contacting Utility Market.
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