Discover everything you need to know about energy in NSW. Compare providers, understand costs, access rebates, and explore energy plans that may suit your home and usage patterns.
Published on 14/07/2025
By Pallav Verma
Energy Comparison
New South Wales residents have significant control over their energy costs, but navigating the market can feel overwhelming. Understanding how the NSW energy system works and knowing your options can help you make informed decisions that may help you reduce your energy costs, depending on your usage and plan.
Note: Information provided is factual and general in nature. It does not consider your personal objectives, financial situation, or needs. Prices, plans, and provider participation may vary by location and time. Our platform compares plans from a panel of participating providers and may not include all options available in the market.
NSW's electricity system operates through three main distributors that cover different regions across the state. Ausgrid serves 1.8 million customers across Sydney, the Central Coast, and Hunter Valley. Endeavour Energy distributes power to 2.7 million people in Greater Western Sydney, the Blue Mountains, Southern Highlands, Illawarra, and South Coast regions. Essential Energy covers the largest geographic area, servicing around 800,000 customers across 95% of NSW, including parts of Southern Queensland and Northern Victoria.
Your distributor determines your network charges and the Reference Price in your area, but you can choose your energy retailer regardless of which distributor serves your property.
Energy providers in NSW offer two types of plans. Standing offers include rates set by your distributor and can only change twice per year. These plans are capped by the Default Market Offer (DMO), which sets maximum rates providers can charge. Market offers typically provide better value with special deals, discounts, and competitive rates, though providers can change these terms with proper notice.
Market offers may deliver better value for some households that regularly compare plans and switch when better deals become available.
The average NSW household electricity bill is approximately $1,965 per year, or $491 per quarter, based on the 2025-26 Default Market Offer for residential customers on single-rate tariffs. However, costs vary significantly by region:
Regional NSW households typically pay more for electricity than Sydney residents due to higher network costs and different usage patterns.
Note: Actual costs will vary depending on usage, location, and retailer. Information is general in nature.
Understanding your bill structure helps identify savings opportunities. NSW energy bills comprise two main components:
The average NSW household allocates energy consumption as follows:
Focusing efficiency improvements on these major categories delivers the greatest impact on your bills.
The NSW Government's Energy Rating Calculator helps estimate running costs for different appliances. You can input brand and model details to check annual energy usage and expected costs based on your electricity rates.
For real-time monitoring, plug-in power meters (available from $20) show actual energy consumption and identify standby power waste. Monitor appliances like refrigerators for at least 24 hours to account for cycling patterns.
Simple changes like running washing machines and dishwashers during off-peak hours can reduce costs by taking advantage of lower overnight rates.
NSW's deregulated market gives you choice among numerous energy providers, including AGL, Origin, EnergyAustralia, Red Energy, Alinta Energy, Powershop, Momentum Energy, and many others. Each provider offers different plans, rates, and incentives.
Not all providers service every area, so compare energy providers based on availability in your specific location and their current market offers.
Most NSW providers offer GreenPower plans or carbon offset programs. Some providers operate renewable energy infrastructure directly - Powershop owns wind farms and hydro plants in NSW, while Diamond Energy operates biogas, solar, and wind facilities.
For solar households, feed-in tariffs range from 1-10 cents per kWh for electricity fed back to the grid. Compare total plan value rather than focusing solely on feed-in rates, as high tariffs might disguise expensive usage rates.
To help households manage energy costs, the NSW Government offers a range of rebates. Here’s a summary of what’s available:
Eligible households will receive up to $150 in 2025–26, automatically applied as two $75 quarterly credits on electricity bills.
Provides $285 annually for retail customers or $313.50 for embedded network customers. Available to eligible concession cardholders such as pensioners, veterans, and low-income families.
Source: NSW Energy Rebates – Low Income
Up to $250 annually for households receiving the Family Tax Benefit (FTB).
Provides $110 per year for retail customers or $121 for embedded network customers to help with gas bills.
Source: Service NSW – Gas Rebate
Offers between $1,638 and $1,802 per year, depending on the type and number of approved life support equipment used at home.
Provides $250 per year for Commonwealth Seniors Health Card holders to assist with electricity costs.
Offers $350 annually for retail customers, or $385 for embedded network customers, for households with members who can’t regulate body temperature due to a medical condition.
Energy retailers automatically apply eligible rebates to your bills, though you may need to confirm your concession status with your provider. Check Service NSW for complete eligibility criteria and application processes for each rebate program.
Switching providers in NSW is straightforward and typically takes 2-5 business days. Your new provider handles most paperwork and coordinates with your previous provider. You'll need your current provider details, recent bills, and basic property information.
There should be no interruption to your power supply during the switch, and you'll receive confirmation from your new provider about the transfer date.
Most NSW providers don't charge switching fees for customers on open contracts. Check your current contract for exit fees before switching. You receive a 10-day cooling-off period to cancel new contracts if you change your mind.
If you're moving house, providers typically charge connection fees for new services, usually added to your first bill. Many providers offer move-in guarantees ensuring power supply on your moving date with 2-5 business days notice.
Review your energy plan at least annually, or whenever your benefit period expires. Energy providers regularly launch new offers to attract customers, so you might find better deals even if you switched recently.
Consider switching when your circumstances change significantly, such as installing solar panels, adding major appliances, or changes in household size affecting your usage patterns.
When you compare energy plans, focus on total annual costs rather than just usage rates or supply charges. On average, the lowest offers across DMO regions are between 18% and 27% cheaper. Source: aer.gov
Consider your usage patterns when evaluating time-of-use tariffs. If you can shift energy use to off-peak periods, these plans might deliver significant savings despite higher peak rates.
Energy markets change frequently, with new providers entering the market and existing providers adjusting their offers. Bookmark comparison tools and set calendar reminders to review your plan annually.
Monitor your bills for changes in rates or charges, as providers must notify you of variations but terms can change after benefit periods expire.
Understanding NSW's energy market gives you the power to make informed decisions about your energy supply. Regular comparison shopping, understanding your usage patterns, and taking advantage of available rebates can deliver substantial savings.
The key to managing energy costs effectively is staying engaged with your options and making decisions based on your household's specific needs and circumstances.
Ready to see what energy savings might be available for your household? Compare Energy Plans at electricityprovider.com.au to explore current offers from trusted providers in your area.
Note: Our platform compares a selection of providers from our panel and may not cover all providers or plans in the market. Information provided is general and does not consider your personal circumstances.
