How to Compare Electricity Prices in Australia (2026 Guide)
If you haven’t compared electricity prices in the last 12 months, there’s a good chance you’re overpaying. With cost-of-living pressure still squeezing Aussie households in 2026, your power bill is one of the few major expenses where shopping around can genuinely save you hundreds of dollars a year, without changing your lifestyle at all.
Here’s everything you need to know about how to compare electricity providers and lock in a better deal.
Why Electricity Prices Differ Across Australia
Australia doesn’t have one electricity market, it has several. Most states are part of the National Electricity Market (NEM), but Western Australia and the Northern Territory operate separately, which means different pricing structures and provider options depending on where you live.
Electricity prices in 2026 have continued to trend upward modestly across most states, with year-on-year increases ranging from 2.9% to 5.1% depending on the state. That’s not great news but it makes comparing providers more important than ever.
What Is the Default Market Offer (and Why Should You Care)?
The Default Market Offer (DMO) is the government-set benchmark price — essentially a safety net that caps what retailers can charge customers who haven’t shopped around. Electricity companies in NSW, south-east Queensland, and South Australia must compare their prices to this reference price when advertising their offers, making it easier for consumers to compare plans. ACCC
In Victoria, the equivalent is called the Victorian Default Offer (VDO). The VDO for a residential household on a single rate tariff in Melbourne’s Citipower network sits at $1,546 per year, but the lowest market offer available on the same network is currently around $1,215 per year, a saving of over $331 annually.
What Are Electricity Bills Looking Like in 2026?
Here’s a quick state-by-state snapshot based on current data:
NSW: The average electricity bill in NSW is around $1,965 per year, or roughly $491 per quarter, based on the AER Default Market Offer for 2025–26.
Victoria: The average Victorian electricity bill is approximately $1,675 per year, or $418.75 per quarter, based on the Victorian Default Offer for the 2025–26 period.
If your current bill is sitting at or above these figures, you’re almost certainly on a default plan and could be paying less.
How to Compare Electricity Providers
When you compare electricity plans, don’t just look at the headline discount. Compare both usage rates (cents per kWh) and daily supply charges, and watch out for extra costs like credit card fees, move-in fees, and disconnection charges, which can vary significantly between retailers.
Things to check before you switch:
Usage rate (c/kWh): In Victoria, typical usage rates currently sit between 23 and 28 cents per kWh, depending on the provider and network. Even a few cents difference compounds fast across a full year.
Daily supply charge: This is the flat fee you pay just to stay connected, regardless of how much power you use. A low usage rate means nothing if the supply charge is sky-high.
Conditional discounts: Many “cheap” plans come with strings attached — pay-on-time discounts, direct debit requirements, or lock-in periods. Read the fine print.
Sign-up credits and incentives: Incentives like sign-up credits or rewards points are designed to get you to switch — but since they’re one-off, you’re better off prioritising the plan that suits your long-term needs.
Where to Compare Electricity Plans in Australia
The two most trusted free tools for Aussies are:
Energy Made Easy (energymadeeasy.gov.au) — the government’s independent comparison tool, covering NSW, QLD, SA, TAS, and the ACT
Victorian Energy Compare (compare.energy.vic.gov.au) — for Victorian households
Both let you enter your postcode and usage details to see real plans available in your area. Most electricity rates are updated annually on 1 July when the AER sets new reference prices — but retailers can change prices at other times too, with at least five days’ notice required. That’s why doing a comparison every six to twelve months is worth building into your routine.
By knowing your rates and comparing plans regularly, you’re protecting your household from future rate hikes. Switching electricity providers is quicker and easier than most people expect — often just a matter of filling out a form online, with no interruption to your power supply.
Don’t set and forget your energy plan. Take 10 minutes, pull out your latest bill, and see what else is out there. Chances are, there’s a better deal with your name on it.