What is the average electricity bill in Australia in 2026?

The average electricity bill varies significantly by state, but for a typical household, it ranges from approximately $1,310 per year in the ACT to $1,580 in South Australia.

How do I find the cheapest electricity provider in my area?

The best way is to use the official government energy comparison websites: Energy Made Easy for most of Australia, and Victorian Energy Compare for Victoria. These free tools compare all publicly available plans based on your postcode and usage.

What is the Default Market Offer (DMO)?

The Default Market Offer (DMO) is a maximum price that electricity retailers can charge customers on standard 'standing offer' contracts in NSW, SA, and South East QLD. It's set by the Australian Energy Regulator (AER) and acts as a safety net and a reference price for comparing cheaper market offers.

Are there any government electricity rebates in 2026?

The nationwide Energy Bill Relief Fund ended on 31 December 2025. However, state and territory governments continue to offer energy rebates and concessions for eligible customers, such as those with a Pensioner Concession Card or Health Care Card.

Best and Cheapest Electricity Plans in Australia (2026): A State-by-State Guide

The cheapest electricity plans in Australia for 2026 are typically offered by smaller and online-only retailers like Kogan Energy, GloBird Energy, Nectr, and Energy Locals. These providers consistently offer rates that are significantly lower than the government-set reference prices. However, the absolute best and cheapest plan for your household depends entirely on your state, your local distribution network, and how much electricity you use. To secure the biggest savings, you must compare market offers against the default price in your area and choose a plan with low usage rates and a reasonable daily supply charge.

With the federal government’s broad Energy Bill Relief Fund having ended on 31 December 2025, households will now see the full, unsubsidised cost of their electricity on their 2026 bills. While targeted, ongoing state-based concessions are still available for eligible cardholders, most Australians will need to be more proactive to reduce their energy costs. The good news is that wholesale electricity costs have been easing, and the Australian Energy Regulator (AER) has forecast price reductions for default offers in several states, which should flow through to more competitive market deals.

This guide provides a comprehensive state-by-state breakdown of the cheapest electricity plans and what you need to know to find the best deal in 2026.

According to the Australian Energy Regulator (AER), households on a flat rate tariff in competitive markets can save hundreds of dollars a year simply by switching from a standing offer to the cheapest market deal.

New South Wales (NSW)

In the competitive NSW market, several providers are offering plans that are more than 20% cheaper than the AER’s Default Market Offer (DMO) reference price. For a typical Sydney household on the Ausgrid network, this can equate to savings of over $470 annually.

Cheapest Plans in NSW (Ausgrid Network, April 2026):

Kogan Energy - Free FIRST: A highly competitive plan with a usage rate of around 29.5 c/kWh and a supply charge of 101.2 c/day. It also includes a 12-month complimentary Kogan FIRST membership.
Powershop - Power House: Matching Kogan’s rates, this plan is another top contender for low prices in the Sydney region.
Nectr - Home Buzz: Another strong option with consistently low usage and supply charges.

Key takeaway for NSW: Don’t settle for the default price. The AER’s draft determination for 2026-27 signals price reductions for default offers, but the biggest savings are found in market offers. Use the AER’s free comparison tool, Energy Made Easy, to find the best deal for your specific postcode.

Victoria (VIC)

Victoria’s electricity market is known for its competitiveness, with numerous retailers vying for customers. The benchmark to beat here is the Victorian Default Offer (VDO). The cheapest market offers can be over 20% less than the VDO.

Cheapest Plans in VIC (Citipower Network, April 2026):

1st Energy - 1st Sapphire: A market-leading offer with a low usage rate of around 20-24 c/kWh and a supply charge of 114.4 c/day.
Kogan Energy - Free FIRST: Also very competitive in Victoria, offering rates significantly below the VDO.
ENGIE - Perks: This plan often features a competitive rate combined with a significant welcome credit, boosting its value for new customers.

Key takeaway for VIC: The state’s universal smart meter network makes Time-of-Use tariffs common. The Essential Services Commission’s draft 2026-27 VDO decision includes a new three-period tariff structure to encourage using power during cheap “solar soak” periods. Use the Victorian government’s independent comparison site, Victorian Energy Compare.

Queensland (QLD)

For households in South East Queensland (Energex network), there are substantial savings to be found by switching away from the standard reference price. The AER has proposed a significant 10.1% decrease in the DMO for this region for 2026-27, which could save a typical household $216 annually even on the default plan.

Cheapest Plans in QLD (Energex Network, April 2026):

Energy Locals - Residential Classic: A strong offer often featuring competitive usage and supply charges, plus potential bill credits.
GloBird Energy - BOOST: Consistently one of the cheapest providers in SEQ, with low variable usage rates.
Nectr - Home Buzz: A solid option with straightforward, low-cost plans.

Key takeaway for QLD: Regional Queensland (Ergon network) is a regulated market with less choice. For those in the competitive South East, it’s crucial to compare plans from smaller providers who are driving prices down.

South Australia (SA)

South Australia has historically faced the highest electricity prices in the nation. While the AER’s draft DMO for 2026-27 suggests only a modest decrease of 1.3% (-$31), switching to a competitive market offer remains the most effective way to lower your bill.

Cheapest Plans in SA (SA Power Network, April 2026):

GloBird Energy - GloSave: This plan is a strong contender, often estimated to be around 21% less than the reference price.
Amber Electric - Battery + Solar: For those with solar and battery storage, this provider offers access to wholesale electricity rates, which can lead to significant savings.
Momentum Energy - Warm Welcome: This plan often includes a sign-up credit for new electricity customers.

Key takeaway for SA: With average usage rates historically being the highest in the country, finding a plan with a lower usage rate is key. Check for plans that reward solar and battery owners.

Western Australia (WA), Tasmania (TAS), Northern Territory (NT) & ACT

These states and territories have regulated or limited retail competition, meaning most residents have fewer choices.

Western Australia: Most residents are supplied by Synergy. Prices are regulated by the WA government. The standard Home Plan (A1) tariff as of July 2025 was 32.3719 c/kWh with a daily supply charge of 116.05 cents.
Tasmania: The primary retailer is the state-owned Aurora Energy. While some competition exists, prices are largely regulated. For 2025-26, regulated prices are set to increase by an average of 2.06%.
Northern Territory: Residents are supplied by the government-owned Jacana Energy. New time-of-use tariffs are becoming available for households with smart meters in 2026.
Australian Capital Territory: While there is retail competition, ActewAGL is the main local provider. The average bill is regulated by the ICRC. The cheapest market offers come from competitors like Origin Energy and Red Energy.

Bottom Line

For Australians in competitive markets (NSW, VIC, QLD, SA), the cheapest electricity plans in 2026 are overwhelmingly found with smaller, often online-focused retailers. Providers like Kogan Energy, GloBird Energy, Nectr, and 1st Energy are consistently offering rates that can save a typical household between $300 and $500 per year compared to the default offers.

Your most critical action is to actively compare plans. Do not assume you are on a good deal. Use the free, independent government comparison websites—Energy Made Easy for NSW, QLD, SA, TAS, and the NT, and Victorian Energy Compare for VIC. Have a recent bill handy, as your actual usage data will provide the most accurate comparison. For those in regulated markets, understanding the standard tariff is key to budgeting and taking advantage of any time-of-use options or government concessions available.