Don't just look at the discounts being offered by a provider. Compare both usage rates (cents per kWh) and daily supply charges. Our average cost of electricity page can guide you here. Just keep your last bill handy.
The reference price applies to households in NSW, SA, southeast QLD and the ACT. In VIC it's known as the Victorian Default Offer. Some other terminology you'll see floating around is benchmark pricing or default offer. This is set each year on 1 July by energy regulators. It's in place to help you compare plans. You always want to get a plan that's below the reference price.
You should also compare extra costs by electricity retailers such as credit card fees, move-in fees and disconnection charges. One retailer may charge you around $13 for disconnecting you, another could charge you $44.
Knowing how much electricity you use and when you use it can aid you to pick a tariff type that can help you minimise your costs. For example, if you're home during off peak hours and happy to run your power hungry appliances then such as a clothes dryer, a time of use tariff can help you with a lower usage rate for this period. Read our guide to energy tariffs to see how you could save by switching to a different one.
Use our guide to average energy bills by state to see if you're paying more or less than the average. If you're paying well above this, it might be time to compare, switch and save.
The cost of electricity has jumped again this year. NSW and VIC residents are paying $334 and $232 a year more than they should respectively. Find out how much more you're paying on your utilities bill.
Energy prices have gone up a lot but I've found it can also be useful to check how much energy is actually being used. My last bill was higher than I expected – both in price and usage. Turns out our old electric hot water system was malfunctioning, which meant it was using more energy and more water. We've replaced it with a newer, energy efficient model, which should be reflected in our next energy bill.— Amy Bradney-George, Personal finance expert
There are three main types of discounts:
Besides inflation, the main driver of rising prices is wholesale energy costs that makeup a third or a half of our electricity bill.
This is impacting households and small businesses in NSW, VIC, SA, QLD and TAS with prices going up by 9.5% to 25% - VIC's the hardest hit and TAS is least impacted.
Besides this, a few reasons your bills could be more expensive are:
Reading your electricity bill can be daunting if you don't know what any of it means. Check our glossary so you can understand what the jargon means.
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Jen Snell's tip
To make sure I remain on a competitive plan, I review my energy provider and plan annually. It might sound like overkill, but it's not - promotions and pricing change annually so if you aren't comparing each year, it's likely you're not on the best plan. I always check what promos are out there and consider what saves me the most. I like paying via direct debit for electricity so direct debit and pay on time discounts are a winner for me. Always consider the saving alongside the cost of the plan though and don't pay more just to access a promotion if the total cost doesn't stack.— Jen Snell, Finder crew member
We know our stuff. Our experts review hundreds of plans each month. It's hard work, but we love it.
You can rely on us. We update plan data on dozens of providers daily, and we're constantly fact-checking.
We're here to help. We've helped millions of Aussies find cheaper energy. That's pretty powerful.
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