What Is the Average Power Bill in Australia? Full Guide

Opening that electricity or gas bill can often feel like a game of roulette. Are you paying too much? Are your energy costs in line with the Australian average? For many households, understanding the average power bill is the first step toward saving money and making smart energy decisions. 

This guide provides an in-depth look at the average power bill in Australia, including electricity and gas costs, and sheds light on regional differences and the factors at play. Plus, we'll offer insights on how you can compare energy providers and save money. 

Average Electricity Bill in Australia  

How Much Do Aussies Pay for Electricity? 

Electricity is an essential part of every Australian household, but the cost of keeping the lights on can vary significantly. According to the latest Australian Energy Regulator (AER) – State of the Energy Market 2024 report, the average electricity bill for Australian households ranges between $1,800 and $2,200 per year, which works out to roughly $150 to $183 per month. 

However, where you live, how much power you use, and which provider you’re with can all impact your final bill. 

Electricity Costs by State (2024) 

Electricity costs can vary depending on where you live, your energy usage, the tariff you’re on, and the provider you choose. The estimates below offer a general guide to average household electricity bills across Australia’s states and territories, based on insights from the Australian Energy Regulator’s (AER) State of the Energy Market 2024 report. 

Disclaimer: The electricity bill estimates provided are based on general market trends and may not reflect exact pricing for individual households. Energy costs are influenced by provider rates, state regulations, seasonal changes, and household consumption patterns. 

Why Do Electricity Prices Vary Across States? 

Several factors influence electricity costs across Australia: 

• Location & Energy Market – States like WA and TAS tend to have higher electricity prices due to limited competition and reliance on local generation (e.g., hydro and gas). In contrast, Victoria and NSW benefit from competitive markets, keeping prices relatively lower. 
• Household Usage & Climate – Colder regions like Tasmania and the ACT tend to have higher usage, especially for heating, leading to bigger bills. Meanwhile, Queensland and SA see price spikes in summer due to air conditioning demand. 
• Network Costs & Infrastructure – The cost of delivering electricity across vast distances in rural and regional areas is higher, leading to more expensive network charges in states like NSW and QLD. 
• Renewable Energy & Government Policies – The shift to renewables is helping lower wholesale electricity prices, but network upgrades and battery storage investments are keeping overall costs from dropping too much. Some states, like Victoria, offer more government rebates to help lower bills. 

Factors Impacting Electricity Costs 

The amount you pay for electricity depends on various factors, including: 

• Household Size: More people usually mean higher consumption. Larger families, for instance, may pay 10% more compared to single-person households. 
• Seasonal Usage: Summer air conditioning and winter heating can cause significant fluctuation in energy bills. 
• Appliance Efficiency: Energy-hungry appliances and older equipment can drive up usage and increase costs. 
• Tariff Structures: Single-rate tariffs charge a flat rate, while off-peak or time-of-use tariffs fluctuate based on periods of the day. 
• Location: Remote areas often have higher delivery charges. 

Average Gas Bill in Australia  

Based on the latest data from the Australian Energy Regulator (AER) – Residential Energy Consumption Benchmarks (2020) report. 

How Much Do Australians Pay for Gas? 

Gas is a key energy source for many Australian households, providing heating, cooking, and hot water. While not every home uses gas, those that do often have lower energy costs compared to electricity. The average gas consumption in Australian homes varies by state, household size, and climate. 

According to the AER's latest benchmarks, households in colder regions like Victoria and the ACT consume significantly more gas, especially in winter, leading to higher seasonal bills. 

State-by-State Average Gas Consumption 

Gas consumption is measured in megajoules (MJ) per year and varies by location due to climate differences. 

Weighted Average Gas Consumption Across Australia 

To find the weighted average, we use the formula: 

Weighted Average = ∑ (Consumption × Household Count) / ∑ Household Count 

Now, applying this to your data: 

Total Household Count: 

• 180 (ACT & TAS) + 1,062 (NSW) + 153 (QLD) + 373 (SA) + 1,380 (VIC) = 3,148 households 

Weighted Averages (Rounded) 

So, the average Australian household using gas consumes approximately 30,556 MJ per year. 

Disclaimer: Gas consumption data is based on benchmarks from 2020. Actual gas prices vary due to supplier tariffs, global market trends, and state-based regulations. Consumers should refer to their provider for current pricing. 

Key Takeaways: 

• Victoria has the highest average gas consumption due to colder winters and high gas usage for heating. 
• The ACT and Tasmania also consume a lot of gas, especially in winter months. 
• Queensland has the lowest gas consumption due to its warm climate, reducing the need for heating. 

Factors Affecting Gas Bills 

Key factors influencing gas bills include: 

• Heating and Cooking: Homes with gas heating or gas-fueled stoves naturally incur higher costs. 
• Seasonal Demand: Much like electricity, winter usage for heaters increases gas consumption. 
• Natural Gas vs. Propane: Natural gas tends to be more affordable than bottled propane. 

Compare Energy Providers to Save Money 

Are you paying more than your state average? It might be time to compare energy providers and switch to a better plan. The Australian energy market is competitive, with numerous providers offering varied pricing, discounts, and benefits. 

Benefits of Comparing Energy Providers:

1. Lower Costs: Switching to a new plan can save you hundreds of dollars annually.  
2. Tailored Plans: Find energy options that match your household size and consumption habits.  
3. Eco-Friendly Choices: Opt for providers offering renewable energy plans.  

Energy Comparison Tools Australians Can Use 

When it comes to comparing electricity and gas plans, it’s important to understand your options—and the tools available to help you make an informed decision. 

1. Energy Made Easy (AER) 

Energy Made Easy is an independent, government-operated comparison website run by the Australian Energy Regulator (AER). It is designed to help residential and small business customers compare energy offers available in their area. The platform is free to use, impartial, and includes plans from all retailers who are required to list their offers under national energy laws. 

2. Electricity Provider Energy Comparison 

Electricity Provider is a privately operated platform that enables Australians to compare energy plans from a range of retailers on its panel. While not a government website and not inclusive of every provider in the market, Econnex offers a straightforward, ad-free experience where users can compare and apply online in just a few steps. All participating retailers are clearly listed, and the platform does not accept paid promotions or prioritise one brand over another. 

Important Note: Each comparison tool has its role. Energy Made Easy provides a complete government-mandated overview, while platforms like Econnex offer a streamlined application process with plans from partnered providers. It's always wise to review multiple sources to ensure you're selecting a plan that aligns with your household needs, usage habits, and location. 

Tips for Choosing the Ideal Energy Plan 

• Look for plans with low daily supply charges and competitive cents per kWh rates.  
• Check for discounts offered for prompt payment or bundling electricity and gas.  
• Consider fixed-rate plans to avoid seasonal price hikes.  

Practical Ways to Reduce Your Power Bills 

Electricity and Gas Savings Tips 

While switching providers is a fantastic way to reduce costs, adopting energy-efficient practices at home also makes a big difference: 

• Invest in Energy-Efficient Appliances: Look for appliances with high energy-star ratings. 
• Insulate Your Home: Proper insulation reduces heating and cooling costs by maintaining indoor temperatures.  
• Unplug Devices: Electronics on standby mode still consume electricity.  
• Use Solar Panels: Install solar panels to reduce reliance on grid electricity.  
• Time Your Usage: Where possible, run appliances during off-peak periods if you’re on a time-of-use tariff.  

Renewable Energy Options 

Switching to renewable energy is both environmentally responsible and can result in long-term cost savings. Tasmania and South Australia, for example, lead the charge in renewable energy adoption, leveraging hydroelectricity and solar power to lower carbon footprints. 

How to Compare Energy Plans Efficiently?

Here’s a step-by-step guide to finding the ideal plan for your needs: 

• Assess Your Power Usage  

Look at your past bills to see how many kWh (kilowatt hours) of electricity and megajoules of gas your household consumes.  

• Compare Energy Prices  

Use comparison tools that allow you to sort providers by rates, supply charges, and total monthly costs. 

• Check Customer Reviews  

Look at customer satisfaction ratings to evaluate the reliability and service quality of different energy providers. 

• Don’t Be Afraid to Switch  

Most Australian energy plans have no lock-in contracts, making it easy to switch between suppliers. 

Wrapping Up: Is It Time to Make the Switch?  

Understanding the average power bill in Australia equips you with the knowledge to evaluate your energy costs and take actionable steps to save money. Whether it’s switching to a more affordable provider, adopting energy-efficient habits, or investing in renewable solutions like solar, the power to save is in your hands. 

If you’re ready to start saving, use trusted platforms to compare energy plans today. Making a smart switch could put hundreds of dollars back in your pocket.