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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
Laura Crowden
Reviewed by
Dean IpavizSee 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.
Looking for a cheaper electricity plan?
If your electricity bill has you seeing stars, it’s probably time to hunt down a cheaper plan. But with so many options where do you start?
It’s kind of like starting a 5000-piece puzzle: the first step is always pulling out the corner pieces. Think of these corner pieces as the key details in an electricity plan – like rates, fees, and features, which can help narrow things down and make the puzzle less overwhelming. No matter what type of plan you’re looking for we’re here to help connect the pieces and turn that 5000-piece nightmare into a manageable 500-piece set.
Why is electricity so expensive?
There are a bunch of reasons why electricity can sometimes feel like it costs an arm and a leg, even for homes where prices are regulated. There are a lot of moving parts that can affect the final figure of your electricity bills. It’s not just about how much you actually use, it’s also how much it costs to generate, transmit, distribute, and sell your energy.
Surprising no one, inflation is also a big culprit. It’s like a domino effect – as the building costs for transmission and distribution systems increase, so do the operational costs for retailers too. Which all tumbles down and affects our electricity bills.
What factors can make my electricity cheaper?
Tariff types
Not all electricity plans are created equal. Some single-rate tariffs, keep things simple with one consistent rate. Others, like time-of-use tariffs, charge different rates depending on what time of day you use electricity. While we don’t suggest turning into a vampire and doing all your washing in the middle of the night, shifting some of your energy use to off-peak times might be a game-changer if you’re on a time-of-use tariff.
Fees and charges
Most plans come with fees and charges. Think connection fees when you first sign up, termination fees if you break up with your provider early; or late fees if you don’t pay a bill on time. Understanding what these charges are and if they’re a factor in the plans you’re comparing will help you avoid any nasty surprises when your bill shows up.
Rate types
Most electricity plans offer variable rates that rise and fall with the market. But some providers will ‘fix’ these rates, so you’re locked in for a set period – which is great if you like a little bit of certainty. Just like with a home loan, deciding between variable and fixed rates for your electricity comes down to how you use electricity and whether you’re willing to take a chance on market fluctuations.
Discounts
Who doesn’t love a good deal? Discounts can pop up on your accounts for paying your bills on time or using direct debit. Some providers might also offer perks for signing up for a plan online or switching to paperless bills. So, keep those eyes peeled for any of these discounts but just be mindful of what conditions they may have attached.
How do I find a good electricity price?
Finding a good electricity deal is like picking your favourite ice cream flavour—it’s all about what works for you. Let’s take Steven and Miley as examples.
Steven works from home full-time and is all about saving money. After shopping around to find a deal that fits his lifestyle, he’s chosen a market offer plan that costs $1617 annually. Because he’s home during the day, he switched to a time-of-use tariff, which lets him run his appliances during cheaper off-peak times and save.
Miley, on the other hand, is a night-shift nurse who values simplicity over savings. She’s on a standing offer plan that costs $1943 annually, a flat-rate option set by the government (Victorian Default Offer (DMO) or the Default Market Offer (DMO)). It’s hassle-free but not always the cheapest. If Miley compared other plans, she might find a similar flat-rate market offer for a lower price.
You can really see the difference between comparing market offers and sticking to a standing offer. The takeaway? Electricity plans aren’t one-size-fits-all—it’s worth exploring your options to find the best fit for your needs.
Helpful tip
Getting a great plan at a reasonable price is going to rank first for most Aussies, but things like complaints handling and customer service also matter a lot!
Review websites like Trustpilot can give you a good overview of how the provider treats their customers. For instance, if your estimated bill is incorrect, will they resolve the issue quickly? Do they tell you about tariff options that can save you money? You’ll be making these guys and gals a part of your life, so it’s a good idea to make sure dealing with them is going to be pleasant!
Dean Ipaviz
Sustainability Expert and Presenter
How do I find cheaper electricity in my state?
Finding cheaper electricity is kind of like choosing where to eat: some places offer a set menu with stable prices, while others have a la carte options with bigger discounts (and bigger price differences). It also depends on where you live and not just your state—even suburbs in the same city can vary!
To get the most out of our quick state-by-state breakdown it helps to know the difference between standing and market offers. Essentially, market offers are the flashy ones you see advertised with discounts and deals, while standing offers are the more straightforward alternative (and can’t exceed that state’s default price).
Victoria
VIC’s electricity market has been deregulated since 2009, meaning electricity retailers have to purchase their power through the NEM before competing for your business with deals and discounts.1For more info see AEMO – National Electricity Market
But there’s also the Victorian Default Offer set by the Essential Services Commission. This is a fair, no-frills price cap for standing offer plans, and while it isn’t always the cheapest option, it provides as a nice reference point for comparing market offers.
New South Wales
NSW has been deregulated since 2014, meaning electricity retailers can set their own prices for market offers. Standing offer contracts, however, can’t be more than the Default Market Offer (DMO), a price cap set annually by the Australian Energy Regulator.
Market offers must use the DMO as a reference point, making it easier to compare plans with handy percentages. The DMO can help you find a deal that works for you without the number-crunching headache.
South Australia
South Australia’s electricity pricing has been deregulated since 2013, but standing offers must still be capped at the Default Market Offer (DMO). Like other states, the market offers need to have that handy comparison percentage based on the DMO reference price, helping you to weigh up your options.
Australian Capital Territory
The ACT is a slightly different kettle of fish as the ACT government sets and regulates 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 just like in NSW and SA, you can use the regulated price as a comparison point to help you decide on a competitive plan.
Queensland
Queensland electricity prices have been deregulated since July 2016 – at least for those in South East Queensland (which roughly covers Brisbane, Ipswich, Sunshine & Gold Coasts). Here retailers follow the same rules as SA and NSW, capping standing offer contracts at the DMO price and providing comparison percentages for market offers.
But for the rest of the Sunshine State, your electricity prices are still regulated. Much like the ACT, you can choose your electricity retailer and pick from their market offers or ask them for regulated pricing.
Northern Territory
Things are a bit simpler if you’re up North. The NT Government regulates electricity pricing through the Electricity Reform Act 2000. This includes fixed daily charges and time-of-use tariffs. As a result, you aren’t likely to find a great deal of difference between electricity retailers, beyond who can supply your home or if there are bundles with other services included.
Western Australia
In WA, government-regulated pricing means you don’t get to pick your electricity retailer unless you use over 50MWh a year. Then it’s just a matter of where you live determining if you’ll be with Synergy or Horizon Power. But thanks to the Uniform Tariff Policy no matter where you lay your hat in WA, you’ll pay the same rate, even if it costs more to supply your home.
Tasmania
In Tasmania, you can choose to go with a regulated standing offer or play the market with a selection of different retailers. The regulated standing offer in Tassie is a little like the DMO and caps prices to reflect electricity supply costs. Aurora Energy is currently the only regulated offer retailer, so your options might feel limited, but it ensures stable pricing while you explore market deals.
How to find a good deal on electricity
Finding a good electricity plan is like finding the perfect phone—it’s all about comparing options to see what fits your lifestyle. While iPhone and Android might let you easily compare specs side-by-side, electricity plans require a little more digging. Here’s a quick guide to help you figure out which plan might be the perfect match for you.
Understand your energy usage
Start by checking your past electricity bills. Look at 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 (cheaper rates during off-peak times) could work for you. Don’t forget about other effects like your climate, the size of your home and more.
Compare usage rates
Your usage charge is the cost of the electricity you actually use—it’s the biggest part of your bill. Depending on what tariff you’re on you could have more than one usage charge so understanding how you’re charged is essential.
Check supply charges
Your supply charge or fixed charge is the 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 this is at a reasonable price.
Review the contract terms
Always read the fine print! Before signing away make sure to check that your rates (fixed energy plans or variable) and contract length match with your usage needs and patterns. Also, make sure to check if there are any fees or charges in your plan.
Use the reference price as a guide
If you’re unsure where a plan sits on the “good deal” spectrum, use the reference price as a guide. This is the government-set benchmark price, like the Default Market Offer (DMO) in NSW, QLD, and SA or the Victorian Default Offer (VDO) in VIC. A plan priced lower than the reference price could mean better savings.
Look for discounts and incentives
Many plans will come with some eye-catching deals, with conditional discounts for things like direct debit or early payments. If you can make these conditions, then great! But if you aren’t sure, then check that these will actually benefit you in the long run.
Frequently asked questions
How does the energy market work in Australia?
The energy market works a bit differently depending on which state or territory you live in. Some locations have private companies that generate and sell electricity through energy retailers as part of the national electricity market (also known as the NEM).2For more info see the Department of Climate Change, Energy, the Environment and Water – National Electricity Market This is the case if you live in Victoria, Queensland, New South Wales, the Australian Capital Territory, South Australia or Tasmania.
However, if you’re living your best in the West, things are a bit different. Most residents in WA will be dealing with state-owned companies Synergy and Horizon Power, which generate, distribute and sell electricity. If you’re in the Southwest Interconnected System (SWIS) area, your provider is Synergy. Outside of that, it’s usually Horizon Power—but you could have limited or no choice in plans.
The energy market is different again 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.
Where you live affects your electricity options, so understanding your local market can help manage your expectations when hunting for a deal.
When is electricity cheaper in Australia?
Peak hours generally offer cheaper rates when compared against peak and shoulder times. Peak hours come with cheaper rates to help encourage people to take a step back from the main grid and release some pressure. These off-peak hours change across each state and provider, but they’ll usually fall between 9 pm-4 pm, with peak times filling up the rest of the day. If you’ve got a smart meter and your routine matches up with 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?
If you need a bit of a hand paying your electricity bills, you might be eligible for concessions or rebates. Some are nationwide, like the $300 Energy Bill Relief Fund for all households in 2024–25, while others depend on where you live.3Department of Climate Change, Energy, the Environment and Water – Energy Bill Relief Fund
While the below list isn’t completely comprehensive, it gives you a general idea of what is out there as of Jan 2025.
Victoria
Eligible Victorian households can get the Annual Electricity Concession, which is a concession of 17.5% of their electricity usage and service costs (after retailer discounts and solar credits are taken out of the equation).4For more information see Victoria Government – Annual electricity concession It also doesn’t apply to the first $171.60 of your annual bill though. To get it, you’ll need to have the appropriate concession card.
New South Wales
If you live in NSW, you might be eligible for the Family Energy Rebate. This is a rebate you’ll need to apply for annually to ensure your circumstances still meet the eligible criteria. However, it’s well worth it as you can be credited up to $275 per household on your electricity bill.
South Australia
South Australian households on low or fixed incomes can apply for Energy Bill Concessions via the South Australian Government’s website.5For more information see SA.GOV.AU – Energy bill concessions With it, you can get up to $274.85 off your energy bills.
Australian Capital Territory
Eligible ACT households can use the Utilities Concession Scheme to get up to $800 back on bills for electricity, gas, water or sewage.6For more info see Everyday Climate Choices – Electricity, gas and water rebate If you’ve got one of the eligible cards, you can apply for the rebate directly through your Energy Retailer.
Queensland
Exciting news if you’re a Queenslander: you’re eligible for the Cost of Living Rebate.7For more info see Queensland Government – Cost of living rebate for households Grid-connected Queensland households with a separate meter will receive a $1,000 rebate on their electricity bills. Plus, you don’t even need to apply for it. However, it’s worth checking if you meet the vulnerable household criteria. You could be eligible to get an additional $372 through the Queensland Electricity Rebate too.8For more info see Queensland Government – Electricity and gas rebate
Northern Territory
Up north things are even better if you’re eligible for the NT Concession Scheme, which includes concessions on household electricity.9For more info see NT.GOV.AU – electricity concessions You could get as much as $1,200 through this concession.
Western Australia
WA’s Household Electricity Credit payment is $700 total if you meet the eligibility criteria.10For more info see WA.GOV.AU – Household electricity credit With up to $400 from the state government and the other $300 from the Commonwealth Government’s energy bill relief scheme.
Tasmania
For folks in the Apple Isle, you might be able to get some bill relief with the Annual Electricity Concession.11For more info see Tasmanian Government – Annual electricity concession Provided you have one of the eligible concession cards, you can get a daily discount of $173.296 to help with your electricity bills.
New rebates and concessions can pop up as the old ones wind down, so while we try to stay up to date with all the latest developments, it’s a good idea to keep your eyes peeled as well.
Is a flexible electricity plan more important than a cheap one?
Unfortunately, there’s no hard-and-fast rule on this one.
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 higher rates.
However, let’s say you sign up to a plan with cheap rates and a fixed term. If the plan works for you, the price remains competitive and nothing unexpected comes up, then it might be worth it. But ‘might’ is the operative word. There’s no crystal ball to predict if prices will stay low or if your situation might change.
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.
Are gas and electricity plans cheaper when bundled?
This comes down to what kind of plans and discounts an energy provider offers. Some might be willing to offer gas and electricity bundles at a reduced price, but this doesn’t mean that a bundle will always be cheaper. Heck, in some cases, getting gas and electricity from different providers will get you a cheaper price through plans that are better tailored to your specific needs.
It’s all about comparing the different options on offer. How do different bundles stack up to separate gas and electricity plans? Are they cheaper? More flexible? Better suited to how you use energy? Do a little research, and you’ll likely find something that ticks your boxes.
Can I get cheaper electricity?
There’s no point sugar-coating it. Rising electricity costs aren’t easy for anyone to deal with. But that’s just one more reason to check out plans from a range of different electricity providers. Doing so might help you find a great competitive option that’s better for your needs and your wallet. If you’re keen to see what you could save on electricity, use our online tool or call us at 1800 664 532 to compare plans from a range of providers now.
Get started on comparing energy plans today!
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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.