How to compare electricity plans in Australia
Every electricity plan is built from the same handful of parts. Once you know what they are, comparing plans stops being confusing, and it becomes obvious when a "big discount" isn't actually a good deal.
1. Usage rates (cents per kWh)
This is what you pay for the electricity you actually use, measured in kilowatt-hours. Plans can charge a single rate (the same price all day), a time-of-use rate (peak, shoulder and off-peak prices depending on the time of day) or a controlled load rate for appliances like electric hot water that run on a separate circuit. If you're home during the day or have solar, single rate and time-of-use plans can work out very differently.
2. Daily supply charge
A fixed amount charged every day for being connected to the grid, whether you use power or not. Low-usage households (small apartments, holiday homes, solar homes) should pay close attention here, because the supply charge can be a large share of the bill.
3. Discounts and conditions
Pay-on-time and direct-debit discounts are still common, but check what the discount is applied to (usage only, or the whole bill) and whether the base rates are higher to begin with. Benefit periods can also expire after 12 months, quietly moving you onto a more expensive rate.
4. The reference price
In New South Wales, South East Queensland and South Australia every plan is compared against the Default Market Offer (DMO), and in Victoria against the Victorian Default Offer (VDO). Retailers must show how far above or below the reference price a plan sits, which makes it a handy shortcut when comparing. In Tasmania, standing offer prices are regulated by the Tasmanian Economic Regulator.
Rule of thumb: compare the estimated annual cost for your usage, not the headline discount. Our comparison does that automatically for your address.
Solar, batteries and feed-in tariffs
If you have solar panels, the plan that's cheapest for a neighbour without them may not be the cheapest for you. Look at the solar feed-in tariff (what you're paid per kWh exported), but weigh it against the usage rate and supply charge, because retailers often pair a generous feed-in tariff with higher prices elsewhere.
With a home battery the picture changes again. You'll typically export less and import less at peak times, so time-of-use plans, plans with cheap off-peak charging windows, or plans with free daytime power periods can all be worth a look. Some retailers also offer virtual power plant (VPP) programs that pay you for sharing your battery.
Whatever your setup, the answer is the same: compare at your address with your real usage, and re-check once a year, because solar and battery plans change often.
Where we compare electricity
Utility Club compares residential electricity plans in:
In Queensland we cover Brisbane, the Gold Coast and the Sunshine Coast, where you can choose your retailer. If you also have gas, see our gas comparison to bundle both, and if you're relocating, our moving house service can connect your new home before you arrive.
Save more with lower usage
The cheapest kilowatt-hour is the one you don't use. Once you're on a good plan, our energy saving tips cover simple changes to heating, cooling, hot water and appliances that can trim your bill further.