Average electricity bill and rates in Australia
An electricity bill is two numbers: what you pay per unit used, and a fixed daily charge you pay regardless. The tiles below show both live across the plans we compare, plus what they add up to over a year.
Live from the energy we compare
Updated 17 Oct 2026The headline numbers
There is no single average electricity bill in Australia, because the two components that build it vary independently. The usage rate, in cents per kilowatt hour, is what you pay for power you actually use. The daily supply charge is a fixed fee for being connected, charged whether you use anything or not, and over a year it commonly adds $350 to $500 before a single appliance runs.
This is why comparing on headline discounts fails. A plan advertising a large percentage discount off a high base rate can cost more than a plan with no discount and a lower rate. The live tiles above show the average and lowest usage rate and supply charge across the plans we compare, which is the like-for-like comparison worth making.
The Default Market Offer is the reference point in New South Wales, South East Queensland and South Australia, with the Victorian Default Offer playing the same role in Victoria. It caps what retailers can charge customers who never actively chose a plan. For 2026-27 it falls by between 3.4% and 5.0% for NSW residential customers on a flat rate and by 7.2% in South East Queensland, while South Australia rises 1.4%. Crucially the DMO is a safety net, not a good deal: many market offers are priced below it, so a standing offer is often not the cheapest option available.
Household usage varies more than most people expect, and the AER’s own reference figures reflect that, ranging from about 3,900 kWh a year in some zones to 4,900 kWh in others. Any bill estimate, including the ones on this site, rests on a usage assumption, so the number to compare between plans is the rate structure rather than an estimated total built on someone else’s household.
Two structural features are now worth watching. Time of use tariffs charge different rates by time of day and reward households that can shift washing, charging and heating out of the early-evening peak. For 2026-27 the time of use standing offer itself falls by between 1.1% in South Australia and 10.7% in South East Queensland, the AER reports. And from 1 July 2026 retailers in NSW, South East Queensland and South Australia must offer a Solar Sharer plan giving smart meter customers three hours of free electricity in the middle of the day, which suits anyone who can move heavy usage to the middle of the day, with or without rooftop solar.
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Terms on this page
- Usage rate
- What you pay for each unit of electricity you actually use, quoted in cents per kilowatt hour (c/kWh). It is the larger half of most bills and the number worth comparing hardest.
- Daily supply charge
- A fixed daily fee for being connected to the grid, charged in cents per day whether you use power or not. Over a year it commonly adds $350 to $500 to a bill regardless of usage.
- Default Market Offer (DMO)
- A price cap the Australian Energy Regulator sets each year for customers who never chose a plan, applying in NSW, South East Queensland and South Australia. It is a safety net and a benchmark, not a good deal.
- Victorian Default Offer (VDO)
- Victoria’s equivalent of the DMO, set by the Essential Services Commission. It caps what retailers can charge customers on a standing offer in that state.
- Standing offer
- The default plan you land on if you never actively choose one, or when a market contract ends. It is capped by the DMO or VDO but is almost always more expensive than a competitive market offer.
- Market offer
- A plan a retailer competes on, priced below the standing offer and free to include discounts and incentives. Most households are already on one, and the prices vary widely, so comparing market offers is where most savings are found.
- Time of use tariff
- A tariff charging different rates by time of day: peak, shoulder and off-peak. It rewards households that can shift washing, charging and heating out of the early-evening peak, and penalises those that cannot.
- Feed-in tariff
- What a retailer pays you per kilowatt hour for the solar power you export to the grid. Rates have fallen sharply as daytime solar has grown, so a headline feed-in rate rarely outweighs a poor usage rate.
- Benefit period
- How long a plan’s discount or promotional rate lasts, often 12 months. When it ends the plan reverts to the retailer’s standard rates, which is why an unreviewed plan drifts expensive.
Frequently asked questions
What is the average electricity bill in Australia?
It depends on your usage, your distribution zone and your plan. The live tiles on this page show the average usage rate and daily supply charge across the plans we compare, and an estimated annual cost at a reference usage. Your own bill scales from those two rates plus how much you actually use.
What is the Default Market Offer and does it apply to me?
The DMO is a price cap the AER sets each year for customers on a standing offer in NSW, South East Queensland and South Australia. Victoria has an equivalent, the Victorian Default Offer. It applies if you never actively chose a plan, and it is a safety net rather than a competitive price.
Why is my bill high when I barely use electricity?
Almost certainly the daily supply charge. It is a fixed fee for grid connection, charged every day regardless of usage, and across a year it typically adds $350 to $500. For a low-usage household it can be the majority of the bill, so the supply charge is the number to compare.
Is a plan with a big discount the cheapest?
Not necessarily. A discount is applied to that retailer’s own rates, so a large discount off high rates can cost more than a modest rate with none. Compare the usage rate in c/kWh and the daily supply charge directly, and check when the benefit period ends.
This page is general information only and does not take your personal circumstances into account. CompareThat is not an energy retailer and does not supply electricity or gas. Cost estimates depend on usage assumptions and will differ from your actual bill. Live figures are drawn from the products we compare; authored figures cite their source and date.