How much is the cost of electricity per kWh in your state?

It’s the age-old question: How much does electricity cost? It’s a tricky question to answer because of the multiple variables that determine the price of electricity in Australia. The wholesale price of electricity, network charges, where you live, renewable energy fees and the type of contract you have all affect how much you pay.

In this article we will focus on the usage charges by looking at the cost of electricity in Australia per kWh, to help you compare your rates and find out if you could be paying less.

On this page

• What determines electricity prices in Australia?
• Cost of electricity in Australia by state
  • Electricity cost per kWh Victoria
  • Cost of electricity per kWh NSW
  • Cost of electricity per kWh QLD
  • Cost of electricity per kWh SA
• What is the average kWh per day usage?
• How does the average cost of electricity per kWh impact your bill

What determines electricity prices in Australia?

There are two main factors that are combined to determine Australian electricity prices: wholesale prices and distribution charges.

Recently, we have encountered the perfect storm of factors to push the wholesale price of electricity in Australia up. These include supply shortages caused by the export of natural gas (and the lack of the controversial gas trigger) and the war in Ukraine, transport disruptions caused by COVID-19, bushfires and floods and the closure in recent years of several large power plants. 

Distribution charges are related to the cost incurred by your distributor to transport electricity to your home. This includes the cost of maintaining and expanding the poles and cables that make up the grid, as well as responding to emergencies and faults and arranging new connections. You will see this charge on your bill as a network or daily supply charge.

Cost of electricity in Australia by state

The average cost per kWh in Australia varies by state. There are a few reasons for this, including the state’s renewable energy sources and the cost of transporting electricity from the source to the local network.

However, it’s important to remember that the average cost of electricity is not necessarily the price you pay on your bill. Each retailer has different rates on offer and a range of tariffs that offer different rates for different types of electricity. In addition, the state and Australian governments set a reference price, which puts a cap on the price that the electricity market can charge in each state.

Australian electricity price types

There are a lot of different tariffs on offer from Australian energy retailers, tailored to suit specific types of energy usage. Often a provider will only show their most popular tariffs on the front of their website, so it pays to talk to an expert to make sure you have the best plan to suit your needs. 

The different types of tariffs are explained below.

To compare Australian electricity prices, we have looked at single rate, ToU – two rate and controlled load rates from the ‘Big Three’ energy retailers – Origin, AGL and EnergyAustralia – using their standing offer plans (other plans are available which might save you money on your bills).

Please note – other retailers are available in each state and might have a better option for you, such as ActewAGL which serves customers in the Canberra region or Red Energy and Lumo Energy which offer great options for renewable energy. Talk to an expert at Move-In Connect to find the right choice for your household.

Read more about your state below. If you would like to see the detailed rates from each provider, scroll to the bottom of the page.

Victoria electricity prices per kWh

Prices are based on the electricity rate in Melbourne per kWh and are correct in November 2022. The Melbourne electricity cost per kWh is relevant to residents in the Citipower network.

NSW electricity prices per kWh

Prices are based on the electricity rate in Sydney per kWh and are correct in November 2022. The Sydney electricity cost per kWh is relevant to residents in the Ausgrid network.

Sydney off peak electricity times vary based on the season. NSW off peak electricity times in this table are based on summer rates. Electricity peak hours in NSW are the periods when electricity demand is highest during the daytime and early evening hours.

QLD electricity prices per kWh

Prices are based on the electricity rate in Brisbane per kWh and are correct in November 2022. The Brisbane electricity cost per kWh is relevant to residents in the Energex network. 

SA electricity prices per kWh

Prices are based on the electricity rate in Adelaide per kWh and are correct in November 2022. The Adelaide electricity cost per kWh is relevant to residents in the SA Power Network. 

So, how much does a kWh cost in Australia? As you can see it varies depending on your state and the tariff you choose. South Australian residents are paying the highest Aus electricity rates, but it should be noted that they also have the highest uptake of solar power and can benefit from the ‘solar sponge’ tariff to maximise their savings. So don’t despair if you live in SA – while your rates are high, your energy bill is likely to be one of the lowest in the country.

What is the average kwh usage per day in Australia

Alongside the cost of electricity, your usage i.e the amount of electricity you consume, will affect your bill. You can compare your consumption by looking at the average kilowatt usage per day to see if it is higher or lower than the nations. 

The average electricity usage in kWh per day in Australia is around 11.5kWh, or 4,000 kWh per year (this is based on the average kWh usage per day in Australia in 2020 from the AER’s Residential Energy Consumption Benchmarks report which is published every three years).

Average power usage per day by household size

One of the biggest factors affecting your daily usage is your household size. As you would expect, larger households use more kWhs per day than smaller residences. 

According to the AER’s report, a 1-person household uses an average of 7.2kWh per day, a 2 to 3-person household uses an average of 11.8kWh per day and a 4+ person household uses an average of 15.5kWh per day.

Of course, your actual usage will be based not just on your household size, but a range of factors including your energy usage habits, if you have solar panels and if you have energy efficient or heavy-load appliances.

How does the average cost of electricity per kWh impact your bill?

There are two parts to your energy bills – the supply charge and the usage charge. Unfortunately, you have no control over your supply charge, it is a daily fee set by your network distributor, which is determined by the area you live in.

On the other hand, your usage charge varies based on the electricity cost per kWh on your tariff and your average kilowatt usage per day. Finding the best tariffs to suit your needs and being as energy efficient as possible will drastically reduce your usage charges.

In addition, you might be on a variable or fixed-rate plan. The average cost of electricity per kWh can change on a variable rate plan in response to an increase in wholesale electricity prices, whereas a fixed rate plan will stay the same, even if the cost of electricity skyrockets. In a volatile energy market, a fixed-rate plan can give you peace of mind.

Next steps

As you have learned, finding the cheapest bill isn’t as easy as looking for the lowest electricity rate. Talk to one of the experts at Move-In Connect and we can help you make some big savings. Our service is 100% free of charge, and in the same phone call we can compare your electricity and gas, NBN plan, 5G and Pay TV Australia.

Call us today on 1300 876 045 or enter your details online.

Aus electricity rates in detail