What’s the Average Electricity Bill in Australia?

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What’s the average Australians pay on their electricity bill?

How can these prices help me compare plans?

How do seasons impact the average electricity bill?

What other factors affect my household’s usage?

How can I lower my household’s electricity usage costs and save more energy?

Plug into an energy plan that makes sense

Long story short

Average bill prices differ depending on your home

Electricity costs can vary depending on where you live, how many people live in your home, and how much energy is used.

Seasons and habits can factor into your final bill

More heating in winter, AC running on full steam throughout summer, and daylight savings can all have a part to play in your bill amount.

Small changes could help you lower your bill

From shifting when you use power to upgrading appliances to regularly comparing policies, small shifts in your habits can make a difference.

What’s the average Australians pay on their electricity bill?

Electricity costs can vary a fair bit depending on where you call home and how many people you live with. So, to help see how your bills stack up, here are a few averaged annual electricity costs seen across Australia.

Average annual electricity costs by state and household size

Sources: AER – Electricity and gas consumption benchmarks for residential customers 2020, p31–43; Essential Services Commission – Victorian default offer price review 2025-26; AER – Default market offer prices 2025-26: final determination, p14.

Note: Usage data has been taken from the AER’s 2020 benchmark report and applied to 2025–26 DMO and VDO prices.

How can these prices help me compare plans?

Think of these average prices like a candle in a blackout. Great for making sure you don’t stub your toe on any furniture, but not quite enough to light up the whole house. Maybe your kids and grandkids have decided to move back home, or you might be moving interstate into a new energy market. Both can bring a sense of the unknown to your bills, which is where these benchmark prices can help out.

Being able to see an average bill price that’s closer to your home size and location can give you a great starting point to compare your bill to the rest of the bunch. You’ll be able to see how your usage differs or if it’s similar to other average households of the same size, and what that means for your bill. You could also use these benchmarks to see if your usage habits need to be refined or if it’s time to upgrade those energy-draining appliances for a more efficient home. Either way, it can be a helpful tool to shine a light on your bills and see where you sit across the rest of Australia.

How do seasons impact the average electricity bill?

Australia’s climate can be a bit dramatic – just look at Melbourne’s four seasons in one day. So, it’s no surprise that your electricity bill can move around as much as the weather from one end of the country to another. With eight different climate zones across the country, there’s a fair bit of fluctuation to account for when it comes to your energy needs across the year.

Down south, winter tends to hit a lot harder than up north. This means more hours in the day where the heater is on rather than off, and higher bills to match. We see the opposite usage pattern up north, with summer making aircons work overtime, while fridges and freezers battle to stay cool. For the in-between seasons (spring and autumn), the weather relaxes a bit and becomes somewhat predictable. This gives your energy use (and wallet) a bit of air.

Daylight savings can also come into play, with more electricity needed to light up your home during the darker months, and more time without the lights on in those long summer evenings.

If you’ve got solar panels, you might notice less of a spike in your energy use in summer. Since your main source of energy (the sun) is clocking in more hours, that means more power is being generated for your home, and you’re less reliant on the main grid.

What other factors affect my household’s usage?

The weather is a big factor in your final bill, but it’s not the only thing driving your final cost. Here are a few other things that can contribute to your electricity bills.

How can I lower my household’s electricity usage costs and save more energy?

Think about when you use energy

If you’re on a time-of-use tariff, exactly when you’re using your energy matters. Try running appliances during off-peak times and see the difference this can make on your bills from peak usage. If you’re not home during the day, it doesn’t mean you have to miss out. Set timers on your big-usage appliances like dishwashers so they run when rates are lower.

Rely on renewables

Switching to solar is a big decision, but one that can pay off in the long run. While the up-front costs to install solar panels are high, it can help homes save up to $1,000 every year on energy bills, or up to $1,400 with a solar battery. Making the move to solar is something to ponder on, though. It works best if you’re using your solar power at the time it’s generated, so the more you self-consume in sunny hours, the better your bill could look.

Utilise energy update discounts

Energy-efficient appliances can help make your home more energy efficient, meaning potentially smaller bills. The ‘but’ here is that switching over to newer tech doesn’t come cheap. While it’s worth it in the long run, there are government discounts available to help make those energy upgrades less of a strain on your budget. For example, in Victoria, you could get an up-front discount of between $420 and $1,500 on a hot water heat pump upgrade, helping lower your average electricity bill by around $250 a year.

Compare regularly

About 80% of Australians could be on a cheaper energy plan; that’s a lot of money not being well spent.¹ACCC – No reward for being loyal: Australians urged to shop around for a better value electricity plan This means a quick comparison once a year could be well worth your time. Energy plans change (and so can your household’s needs), so it’s worth it to make sure that your plan still stacks up.

Helpful tip

If you want to check whether your energy plan is still right for you (without doing a whole comparison), the ‘best offer’ section on your bill is your answer. Every few months, your energy retailer has to let you know whether you’re on their best offer (if they’re regulated by the AER). It’s a simple way to check at a glance if you’re getting the best from your provider in between those yearly comparisons.

Julia Paszka

General Manager – Utilities

Plug into an energy plan that makes sense

If your power bill is leading the race (and not in a good way), it might be time to see what else is out there. But don’t worry, comparing energy providers in Australia doesn’t have to be a full-time job. In fact, with iSelect, it’s as simple as riding a bike. Just use our online tool to compare from our range of energy plans and providers, or call up our comparison experts at 1800 664 532 to see if your current plan is pulling its weight.