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Compare electricity plans to find a better deal
Compare electricity plans to find a better deal
Written by
Rachel Gregg
Edited by
Ellie Garran
Reviewed by
Julia PaszkaSee our range of Energy Providers
iSelect does not compare all providers in the market or all plans offered by our partners in your area. Not all plans or special offers are available to all customers and some may only be available over the phone or on the website. Learn more.
How to look for a cheaper electricity plan?
To find a cheaper electricity plan, you should compare your options. You can do this by grabbing your latest bill to see the ‘best offer’ section, which tells you if you’re on the best plan from your provider’s options. For a more comprehensive search, you can use a comparison site to see how your current plan stacks up against a range of other retailers and their plans.
When comparing, you’ll need to think about details like rates, fees and features, which can help narrow down your search. To make the whole process simpler, get iSelect to help compare for you. Our energy comparison experts can help simplify the jargon so you can see what energy plans could work for you.
Why is electricity so expensive?
Electricity bills in Australia are expensive due to the impact of ageing coal power stations, the rising costs of gas generation and maintenance needs across the electricity market, which are also impacted by inflation costs. Since the gas market opened up to global markets, we’ve seen wholesale prices rise steadily across the years, which can mean higher prices for electricity that depends on gas for its generation.
These aren’t the only reasons to explain the expense of powering our homes. There are a lot of moving parts that can affect the final figure of your electricity bills. Your bills aren’t just affected by how much electricity you actually use; they’re also informed by how much it costs to generate, transmit, distribute and sell your energy. Even if you use less power than your neighbour, the external costs that make up electricity prices can often be out of your hands.
What factors can make my electricity cheaper?
Your tariff type, any extra fees or charges, whether you’re on fixed or variable rates and any discounts on your energy plan can all factor into the end cost. Different tariff types come with different rates and charging methods, while conditional discounts or extra fees can all affect the balance on your quarterly power bill. The exact way these factors will impact your costs will depend on the usage of each home.
Tariff types
Your tariff type could make your electricity cheaper if it matches the way your household uses its energy. Single-rate tariffs can keep charges simple with one consistent rate. Others, like time-of-use (ToU) tariffs, charge different rates depending on what time of day you use electricity, while controlled-load tariffs put energy-heavy items on a separate meter.
Fees and charges
Fees and charges can make your electricity plan more expensive, even if the usage rates look competitive. Connection fees when you first sign up, termination fees if you break up with your provider early and late fees if you don’t pay a bill on time can all add up on your final bill at the end of the quarter. Understanding what these charges are and whether they’re a factor in the plans you’re comparing will help you avoid any surprises when your bill shows up.
Rate types
Your electricity costs can change depending on whether you’re on fixed or variable rates. Most electricity plans offer variable rates that rise and fall with the market, while others fix these rates, so you’re locked in for a set period. This means you can lock in a lower rate, but if plan prices move around and you’re no longer on the lowest, you won’t be able to switch without paying an exit fee. Deciding between variable and fixed rates comes down to how you use electricity and whether you’re willing to take a chance on market fluctuations.
Discounts
Discounts can make an electricity plan cheaper, but only if the discount can be applied to your bill and still be competitive in price compared to others. Some providers might offer a one-off discount for signing up for a plan online or switching to paperless bills, while others might need a task to be completed, like paying your bill early and continually, before applying the discount to your bill. Make sure to check the conditions of any discounts to make sure they’re actually the cheapest option for you.
How do I find a good electricity price?
To find a good electricity deal, you need an energy plan that matches your needs. This means you’ll need to understand your usage habits, know which type of tariff works best for your home and compare from all the options available to your location.
Fictional scenario: Market plan versus standing offer
Steven and Miley both live in Melbourne and use 4,000 kilowatt hours per year.
- Steven is all about saving money. After comparing with iSelect to find a deal that fits his lifestyle, he’s chosen a market offer plan that costs $1,242 annually.
- Miley values simplicity over savings. She didn’t want to compare all her options so she’s on a standing offer plan that costs $1,591 annually. This is a flat-rate option set by the government called the Victorian Default Offer, which ensures fair pricing for those who can’t or don’t want to participate in the energy market. It’s hassle-free but not always the cheapest. If Miley compared other plans, she might find a flat-rate market offer for a lower price.
Looking at the $349 difference between standing offers and market plans in this example, you can see the difference that comparing can make on your bills and why it’s important to make sure you find an option that matches your usage habits and budget.
Helpful tip
Price is usually the first thing most of us think of when we start comparing energy plans, but finding a plan with great customer service can make a huge difference to your experience. Before signing up, you should see what other customers think of your new potential provider. Sites like Trustpilot can give you a good overview of how the provider treats their residential customers. For instance, if your estimated bill is incorrect, will they resolve the issue quickly? Do they tell you about tariff options that could help save you money? Your chosen energy provider will become a common part of your life, so it’s a good idea to make sure dealing with them is going to be pleasant.
Julia Paszka
General Manager – Utilities & Credit Cards
How do I find cheaper electricity in my state?
To find a cheaper electricity plan, you need to know how the electricity market works in your state and the difference between market and standing offers. This will help you compare your options and see which works for your needs and budget. Essentially, market offers are often the flashy ones you see advertised with discounts and deals, while standing offers are the more straightforward alternative that can’t exceed that state’s regulated default price.
Here’s how electricity works in different states and the options available for homes.
Victoria (Vic)
Vic’s electricity market has been deregulated since 2009, meaning electricity retailers have to purchase their power through the National Electricity Market before competing for your business with deals and discounts.
But you can still get a standing offer, capped by the Victorian Default Offer, which is set by the Essential Services Commission. While it isn’t always the cheapest option, it acts as a reference point for comparing market offers.
New South Wales (NSW)
NSW has been deregulated since 2014, meaning energy companies can set their own prices for market offers. Standing offer contracts, however, can’t be more than the Default Market Offer (DMO), a comparison price set by the Australian Energy Regulator. Market offers must advertise how they compare to the DMO, making it easier to compare plans.
South Australia (SA)
SA’s electricity pricing has been deregulated since 2013, but standing offers must still be capped by the Default Market Offer (DMO). Like other states, market offers need to show the price comparison percentage based on the DMO comparison price set by the Australian Energy Regulator to help you to weigh up your options.
Australian Capital Territory (ACT)
The ACT is still regulated by its own regulator, which works similarly to other states by setting and regulating electricity prices. So, if you want to shop around in the capital, you can check out market offers from a range of electricity retailers and use the regulated price as a comparison point to help you decide on a competitive plan.
Queensland (Qld)
Qld electricity prices have been deregulated since July 2016 – at least for those in South East Qld (which roughly covers Brisbane, Ipswich, Sunshine & Gold Coasts). Here retailers follow the same rules as SA and NSW, capping standing offer contracts with the Default Market Offer price and providing comparison percentages for market offers.
But for the rest of regional Queensland, electricity prices are still regulated. This means you won’t be able to choose your retailer instead; you’ll likely have to choose a standard plan option with Ergon Energy.
Northern Territory (NT)
The NT Government regulates electricity pricing through the Electricity Reform Act 2000. As a result, you aren’t likely to find a great deal of range when it comes to electricity retailers, you’ll have a small choice of providers who either supply your home or don’t.
Western Australia (WA)
In WA, government-regulated pricing means you don’t get to pick your electricity retailer unless you use over 50 megawatt hours a year. Then it’s just a matter of where you live determining whether you’ll be with Synergy or Horizon Power. But thanks to the Uniform Tariff Policy, no matter where you hang your hat in WA, you’ll pay the same rate, even if it costs more to supply your home.
Tasmania (Tas)
In Tas, you can choose to go with a regulated standing offer or a market from a retailer. The regulated standing offer is similar to the Default Market Offer, as it caps prices based on electricity supply costs. Aurora Energy is currently the only regulated offer retailer, but more market retailers are slowly becoming available, giving homes more choice over time.
How to find a good deal on electricity
To find a good electricity plan, you’ll need to understand how your home uses its energy, compare the plans available, making sure to check the usage rates and supply charges that come with each plan, look for any discounts and review the contract terms. You should also use the comparison price as a benchmark to see how much of a price difference your potential market plan has against the government cap.
Understand your energy usage
A good electricity deal should match how and when your household uses power. Start by checking your past electricity bills to see what you’ve been paying, how much energy you’re using, and when you’re using it most. This can help you decide if something like a time-of-use tariff, with cheaper rates during off-peak times, could work for you. Don’t forget about other factors like your climate, the size of your home and your household’s habits.
Compare usage rates
Usage rates are a key part in finding a good electricity deal because they’re what you pay for the electricity you actually use. Depending on your tariff, you could have more than one usage charge, such as peak, shoulder/solar soak or off-peak rates, so understanding how you’re charged is essential to comparing.
Check supply charges
Supply charge is the daily cost of supplying electricity to your home even if you aren’t using it. Since this is a constant cost in any electricity bill, it’s important to check that your daily supply charge is set at a reasonable price. A cheaper usage rate may not mean much if the supply charge is high.
Review the contract terms
A good electricity deal should suit your usage needs and budget. Before signing up, check the basic plan information like whether your rates are fixed or variable, how long the contract lasts and if there are any fees or charges. The terms and conditions can affect its price and value to you in the long run.
Just remember that energy plans generally increase their prices once a year, so if you’re looking at a fixed energy plan, make sure to get your timing right to lock in a potentially cheaper price.
Use your state benchmark price as a guide
If you’re unsure whether a plan is a good deal, use the comparison price set by your state regulator as a guide. This includes the Default Market Offer set by the Australian Energy Regulator in NSW, South East Qld, and SA and the Victorian Default Offer in Vic. A plan priced lower than the regulatory comparison price could mean better savings.
Look for discounts and incentives
Discounts and incentives can help you find a better electricity deal, but only if they suit how you manage your bills. Many plans will come with conditional discounts for things like direct debit or early payments. If you can meet these conditions, then great. If not, check whether the plan still offers good value without them.
If you’re looking to lower your energy bills but aren’t eligible for any discounts or incentives thinking about ways to lower your energy consumption or swap habits to more energy efficiency can make a positive impact.
Frequently asked questions
How does the energy market work in Australia?
The south-eastern states work through the National Electricity Market, while Western Australia runs its own market called the Wholesale Electricity Market and the Northern Territory has its own set of isolated networks that power properties. Generators across Australia set these wholesale prices every 5 minutes based on the demand needed from the main grid distributors, which sets prices that retailers pay before sending power through to their customers’ homes.
The inner workings of each state’s energy market are different from one place to another. Vic, South East Qld, NSW, the ACT, SA and Tas have a shared system of power supply lines, with a range of private retailers who sell power to homes.
In WA, most residents will deal with state-owned companies Synergy and Horizon Power, which generate, distribute and sell electricity. In the Northern Territory, electricity is predominantly generated by Territory Generation. Power and Water then distribute this electricity, which is sold through energy retailers, where available.
When is electricity cheaper in Australia?
Electricity is generally cheaper during off-peak hours or high solar generation times. States like NSW and SA offer low or free power periods for homes when solar panel generation is at its highest (generally around 11 am – 2 pm); in NSW this is called the Solar Sharer Offer. Off-peak hours change across each state and provider, but they take place during the middle of the night or in the middle of the day. This encourages people to shift some of their daily usage from high-demand times to quieter off-peak periods, which come with lower electricity rates, releasing pressure from the main grid.
If you’ve got a smart meter and your routine matches up with using electricity in off-peak hours, you could save by shifting your energy use to those times. Just remember, a time-of-use tariff only works if your lifestyle fits; otherwise, it might not be worth the switch.
Can I get any energy concessions or rebates?
Yes, if you meet the requirements of specific concessions or rebates, you’ll be able to get a concession or payment on your energy bills from your state government. The exact conditions you’ll need to meet depend on each state and concession available, but most will need a certain concession or health care card to be eligible.
While the below list isn’t completely comprehensive, it gives you a general idea of some of the rebates and concessions available as of August 2026.
- Vic: Eligible Victorian households can get the annual electricity concession, which is a concession of 17.5% of their electricity usage and service costs. It doesn’t apply to the first $171.60 of your annual bill, and you’ll need an eligible concession card.
- NSW: If you live in NSW, you might be eligible for the Family Energy Rebate. The rebate which can credit up to $180 per financial year for retail customers and $198 for embedded networks. You’ll be able to apply to the Family Energy Rebate once a year with proof that your Family Tax Benefit has been finalised.
- SA: South Australian households on low or fixed incomes can apply for energy bill concessions via the South Australian Government’s website. This energy bill concession can give you up to $291.27 a year off your energy bills.
- ACT: Eligible ACT households can use the Electricity, Gas and Water Rebate to get up to $800 back on bills for electricity, gas, water or sewage. If you’ve got one of the eligible cards, you can apply for the rebate directly through your energy retailer.
- Qld: Eligible Queensland pensioners and seniors can get a rebate of up to $399.47 a year on their electricity and up to $96.45 on their natural gas. You’ll need to have an eligible concession card and apply through your gas and electricity retailer.
- NT: If you’re eligible for the NT Concession Scheme, you could get as much as $1,200 annually through this concession. You’ll need to make your claim at the end of each financial year or 6 months after being billed. This concession is capped at a yearly usage of 8,000 kilowatt hours.
- WA: WA’s Energy Assistance Payment, if eligible, could give you a concession up to $377.14 per year. This payment is split into daily amounts and added to your electricity bill. If you have an applicable concession card, you can apply for the payment through Horizon Power or Synergy.
- Tas: For Tasmanian homes, you might be able to get some bill relief with the Annual Electricity Concession. Provided you have one of the eligible concession cards, you can get a daily discount of $1.84 or a one-off yearly payment of $673.
Is a flexible electricity plan more important than a cheap one?
It depends on your household needs, usage patterns and home power setup. A flexible electricity plan can be better if you like switching to the cheapest plan often, while a fixed-rate plan can mean locking in cheaper rates before electricity plan prices are set for the year. Which one will work best for you depends on your home.
An electricity plan that doesn’t have a lock-in contract or exit fee gives you some flexibility if you want to switch or find a better deal. This flexibility could come at a cost, though, with possibly higher rates. But if you sign up to a plan with cheap energy rates and a fixed term, you could miss out on being able to switch to a cheaper energy plan, or it could mean paying more fees to get out of your locked-in contract.
Ultimately, a good strategy is to balance price and flexibility to get the best of both worlds. Many providers offer competitively priced plans without locking you in, giving you freedom and value. The trick is to go searching. iSelect can help you with this.
Are gas and electricity plans cheaper when bundled?
Not always. Bundling a gas and electricity plan together can mean unlocking potential discounts, but after these discounts run out (or even before), you could find that comparing separately can give you greater discounts. This can also mean getting two separate plans that are better suited to your needs, instead of just getting something cheaper that might not service you in the best way.
Finding out whether a gas and electricity bundle is cheaper for you is all about comparing the different options on offer. How do different bundles stack up to separate electricity and gas plans? Are they cheaper? More flexible? Better suited to how you use energy? Do a little research, and you’ll find something that ticks your boxes.
Get started on comparing energy plans today!
Save time and effort by comparing a range of energy plans with iSelect
iSelect does not compare all energy providers or plans in the market. The availability of plans may change from time to time, depending on who iSelect’s providers are and what plans they make available to iSelect. Not all plans made available from iSelect providers may be compared by iSelect either due to commercial arrangements, area or availability, so not all plans or providers compared by iSelect will be available to all customers. Some plans and special offers are available only from iSelect’s contact centre or website. Energy plans are available only for properties located in eligible areas of Victoria, New South Wales, South East Queensland, South Australia and ACT. Click here to view iSelect’s range of providers.