After a long day at work, you finally arrive home and want to relax. You turn on the lights, turn on the TV, and plug in your phone to charge. These are all simple everyday actions. But have you ever thought about the cost of doing these things? The cost of electricity per kwh may be increasing faster than you think. As 2025 approaches, electricity price in different states will fluctuate significantly. It’s important to understand these prices if you want to manage your household budget effectively.
2025 average cost of electricity per kWh by state and territory
In Australia, the power cost per kwh varies a lot from state to state and region to region. This is mainly affected by how electricity is supplied, competition in the market and local policies. This text will show the average cost of electricity and the price range for each state and region in 2025.
New South Wales
Electricity prices in New South Wales range from 26.40c/kWh to 37.27c/kWh, with an average price of around 32.51c/kWh.
New South Wales has a variety of electricity supplies, including coal, gas and renewable energy sources. This drives competition in the market and gives consumers more choice. Electricity prices in New South Wales are expected to rise by 2025 as market conditions change, but there is strong competition among suppliers, so consumers can still find more cost-effective electricity options.The table below shows the prices of electricity from the main suppliers in New South Wales.
| Electricity Provider | General Usage Rate (per kWh) | Daily Supply Charge |
| AGL | 31.93 cents | 83.13 cents |
| Dodo | 26.4 cents | 131.45 cents |
| EnergyAustralia | 37.27 cents | 100.89 cents |
| Origin Energy | 31.93 cents | 83.13 cents |
| Red Energy | 35.15 cents | 121.00 cents |
| ENGIE | 37.27 cents | 100.89 cents |
| Amber Electric | 27.43 cents | 82.29 cents |
| Diamond Energy | 32.73 cents | 77.00 cents |
Victoria
The Victorian electricity market is highly competitive, with major suppliers constantly offering discounts and deals that have a big effect on prices and bills.
Victoria has one of the lowest average electricity prices in Australia, but there is still a big difference in rates between suppliers, with prices ranging from 25.37c/kWh to 31.74c/kWh.
The table below shows some of the major suppliers’ electricity prices, making it easy for you to compare and choose the best plan for you.
| Electricity Provider | General Usage Rate (per kWh) | Daily Supply Charge |
| AGL | 25.37 cents | 89.23 cents |
| Dodo | 26.4 cents | 131.45 cents |
| EnergyAustralia | 31.74 cents | 108.13 cents |
| Origin Energy | 25.37 cents | 89.23 cents |
| Red Energy | 25.71 cents | 85.80 cents |
| ENGIE | 31.74 cents | 108.13 cents |
| OVO Energy | 25.85 cents | 93.50 cents |
Queensland
Queenslanders pay some of the lowest electricity prices in Australia. On average, it costs around 29.72c/kWh. This is because Queensland is a regulated market, which means suppliers can set their own rates. So, the prices offered by different providers can vary. This means that consumers’ actual electricity bills can also vary. These include the cost of generating electricity, transmission costs and distribution overheads. Prices can also vary depending on geographic location and individual usage patterns.
The table below shows the prices of some of Queensland’s major suppliers. This will help you compare different options and find the best one for you.
| Electricity Provider | General Usage Rate (per kWh) | Daily Supply Charge |
| AGL | 28.85 cents | 120.60 cents |
| Dodo | 26.4 cents | 131.45 cents |
| EnergyAustralia | 33.62 cents | 114.23 cents |
| Origin Energy | 28.85 cents | 120.60 cents |
| Red Energy | 29.09 cents | 97.29 cents |
| ENGIE | 33.62 cents | 114.23 cents |
| OVO Energy | 27.61 cents | 93.50 cents |
South Australia
South Australia has the highest electricity prices in Australia. This is mainly because the state uses a lot of renewable energy, which is expensive to produce and store.
ESCOSA (the Essential Services Commission of South Australia) is in charge of the electricity market in the state. It sets the maximum prices that electricity suppliers can charge and requires suppliers to get permission before changing prices. This is to make sure consumers don’t have to pay too much for electricity.
The table below shows the kilowatt-hour electricity prices of some suppliers in South Australia.
| Electricity Provider | General Usage Rate (per kWh) | Daily Supply Charge |
| AGL | 52.49 cents | 99.94 cents |
| Dodo | 26.4 cents | 131.45 cents |
| EnergyAustralia | 45.79 cents | 120.77 cents |
| Origin Energy | 52.49 cents | 99.94 cents |
Western Australia
Electricity prices in Western Australia (WA) are set by government agencies, not determined by market competition. WA has long had a policy of universal electricity pricing, which ensures that all residents and businesses pay the same price for electricity.
However, WA is very big, and the distribution, transportation and supply of electricity are costly, especially in remote areas, where the cost of building and maintaining infrastructure is even higher. This means that there aren’t many options for consumers when it comes to choosing an electricity supplier.
| Electricity Provider | General Usage Rate (per kWh) | Daily Supply Charge |
| Synergy | 28.8 cents | 102.13 cents |
| Horizon Power | 30.81 cents | 110.46 cents |
Tasmania
Most electricity providers in Tasmania offer discounts, incentives or unique offers to compete with each other.
The average electricity price in Tasmania is 26.18c/kWh.Tasmania used to have one of the most heavily regulated electricity markets in Australia, but competition has increased as the retail market has gradually been liberalised. However, electricity prices are still regulated by the government, which limits the pricing options for electricity providers.
As the market opens up, customers have more options for choosing their energy provider and plan, which can help them get better value for money.
| Electricity Provider | General Usage Rate (per kWh) | Daily Supply Charge |
| Aurora Energy | 26.6 cents | 98.45 cents |
| 1st Energy | 29.95 cents | 113.77 cents |
| Energy Locals | 22.00 cents | 118.00 cents |
Although the electricity prices in each state can give you a rough idea, the actual electricity bill will depend on who you get your electricity from, the type of plan you choose and how much you use. The information above is just to give you an idea. Please check the latest information about electricity prices with your local supplier.
What is the power cost per kwh between providers in Australia?
The cost of electricity in Australia varies depending on who you get your electricity from, where you live and the plan you choose. But here are some general prices to give you an idea:
| Provider | AGL | Dodo | EnergyAustralia | Lumo Energy | Origin Energy | Red Energy | ENGIE |
| Average Usage Rate (per kWh) | 31.93 cents | 26.4 cents | 37.27 cents | 25.37 cents | 31.93 cents | 35.15 cents | 37.27 cents |
| Daily Supply Charge | 83.13 cents | 131.45 cents | 100.89 cents | 89.23 cents | 83.13 cents | 121.00 cents | 100.89 cents |
What affect electricity price per kwh?
Energy Source Availability
The type and availability of energy in a region directly affects electricity prices, with regions relying on renewables like solar, wind or water having more stable prices and those using fossil fuels experiencing fluctuations due to supply.
Tasmania generates more than 90% of its electricity from hydroelectric power, making it a reliable and relatively low-cost source of energy. But states that rely on coal or natural gas are more affected by global energy price fluctuations.
Australia’s energy system relies heavily on expensive fossil fuels, though. Renewable energy sources (like solar power) are increasing， more and more homeowners have installed a 5kWh solar system, but most electricity still comes from coal and natural gas. With global fuel shortages, coal and natural gas prices are rising, leading to further increases in the cost of electricity.
Infrastructure Costs
Building and looking after power stations, transmission lines and substations will mean higher electricity costs. At some point, old infrastructure will need to be upgraded to keep the power system going and meet the electricity needs of residents. And some states that are switching to renewable energy are also having to deal with the problem of upgrading their infrastructure. This often requires a lot of investment, which is likely to push up electricity prices.
Distribution Costs
The cost of getting electricity to your home is 40% of your energy bill, which is almost double what it costs to actually use the power. Getting electricity out there relies on things like poles and wires, and that’s something your electricity supplier has to provide. Even if the generation side of things is cheap, the distribution of electricity from power plants to homes and businesses still has a big effect on the price of electricity.
The Australian Capital Territory (ACT) has pretty low electricity prices because it’s a pretty small place, it’s got a lot of people in a small space and it’s got a really good electricity network. It’s pretty obvious that shorter transmission distances help keep costs down.
In Western Australia (WA), though, the state’s electricity network doesn’t share power with the eastern states, and there’s less power sharing. Coupled with its huge size, the high cost of power transmission in WA means it has some of the highest electricity prices in Australia.
Weather Conditions
Extreme weather such as heatwaves, storms and bushfires can cause power outages, increased demand and subsequent price fluctuations. Queensland experiences hot summers, which drive demand for air conditioning and push up electricity prices during peak hours.
Government Policies and Regulations
The government’s policies on renewable energy, subsidies and regulations have a big impact on electricity prices. Some governments provide incentives to reduce the cost of electricity. For example, the government provides rebates to households that install solar panels. The South Australian government is actively promoting the use of renewable energy, but the transition from fossil fuels to clean energy requires significant investment in new infrastructure and battery storage. Although this transition will benefit consumers in the long run, the initial transition costs have already led to higher electricity prices in recent years.
How can I find the best electricity price per kilowatt hour?
To get the best deal on your energy, it’s a good idea to compare plans from different providers. There are some great online tools that can help you do this, such as Energy Made Easy or Canstar Blue. These platforms are pretty easy to use – just enter your location and how much energy you use, and they’ll show you the options available. When you’re looking at these options, it’s also worth thinking about things like discounts, contract terms and extra fees like daily supply charges. And don’t forget to check the type of plan – whether it’s fixed, variable or time-of-use can have a big impact on your overall cost. And finally, make sure the provider has a good customer satisfaction rating.
How to lower electricity bills?
If you are looking for ways to reduce your electricity bill, the following effective strategies can help you reduce your monthly electricity bill.
- Energy-Efficient Appliances: Choose appliances with Energy Star ratings, as they use less energy.
- LED Bulbs: Replace your old light bulbs with LED bulbs, which use up to 75% less energy.
- Power Strips: Use power strips for your appliances and turn them off when you’re not using them. Even when they’re on standby, electronic products still use electricity.
- Use Appliances Efficiently: Wash your clothes in cold water, fill the washing machine as much as you can and don’t put too many clothes in at once.
- Install Solar Panels: Solar panels are a type of panel that can generate electricity using sunlight. This means that you will need to buy less electricity from your energy company. If you install a 5kWh solar system, you can be sure that you will have enough electricity during the day. If you have more electricity than you need during the day, you can save it in a special container. Then you can use this electricity at night.
- Home Backup Generator: Electricity prices are higher during peak hours, when a lot of people are using it. You can save money on your electricity bills by using a generator to power your home during peak hours and charging it during off-peak hours, when electricity prices are lower.
Final Thoughts
When you are looking at your electricity bill, you should not ignore the difference in the cost of electricity per kWh between Australian states. Whether it is the competitive electricity prices in New South Wales or the higher prices in South Australia, you can manage your energy use more wisely and explore other energy options if you do a little research. Act now to take control of your electricity costs with the samehome energy consumption and make sure your electricity bill in 2025 is not more than you expected!
FAQs
How do I calculate kWh usage?
If you’ve got an electricity bill, you can find out how much electricity you used each day by looking at the total kWh usage and dividing it by the number of days in the billing period. If you don’t have a bill, no worries! You can still calculate kWh usage by finding the power (W) of each appliance, estimating how long you use each one each day (in hours), and then calculating your daily power consumption using this formula: kWh = (W × usage hours) / 1000. Then you can add up the kWh of all your appliances to get an idea of how much electricity your whole house is using.
Are solar panels worth it with rising rates？
Yes, in Australia, rising electricity prices are making solar investments more attractive. We’re so lucky to have abundant sunshine here, which means solar energy is a great way to reduce your reliance on the power grid and slash your electricity bills. Most households can recover their costs within 3-6 years, which is great news! The government is also helping out by offering small-scale renewable energy schemes (STCs) to make installations cheaper. With rising electricity prices and all the latest technological advances, solar energy is becoming an even better deal. So, if you’re thinking of investing in solar panels, now’s the perfect time!
Can a home backup generator lower bills?
No. Lots of us think that having a home generator will save us money, but it doesn’t. A home backup generator won’t directly reduce your electricity bills. Generators that run on fuels such as diesel, petrol or liquefied petroleum gas are more expensive per kilowatt-hour than grid power, and the long-term cost of use is much higher than grid power. So, if your goal is to reduce electricity bills, investing in solar panels and battery storage is usually a better option.