Who pays the most for electricity in Australia?

 Electricity prices in Australia have long been a sore point, but not everyone is paying the same. Where you live, how you use power, and even when you switch providers all play a role in your bill shock. The short answer? Households in South Australia typically pay the most for electricity, while those in Victoria and the ACT usually enjoy lower rates. But the story runs deeper than just state averages—it’s about supply, demand, and market quirks that hit some Australians harder than others.

Which state pays the most for electricity?

For years, South Australians have been topping the charts for the highest electricity bills. Their reliance on gas-fired generation and limited local competition has historically kept prices elevated.

By contrast, Tasmania and the ACT often record the lowest average bills, largely thanks to hydropower in Tasmania and regulated pricing in the ACT.

Here’s a simplified comparison:

State/TerritoryTypical Position in RankingsKey Driver of Price
South AustraliaHighestGas dependency, limited competition
QueenslandHigh (regional areas worse)Network costs in remote areas
New South WalesMid to highLarge population, ageing infrastructure
VictoriaLower than averageMore competition, diverse generation
ACTAmong lowestRegulated tariffs, smaller network
TasmaniaLowest or near lowestAbundant hydro generation

Why are bills so different between states?

Energy costs aren’t just about generation—they’re shaped by distribution, policy, and geography.

  • Distribution costs: Running poles and wires to remote towns in Queensland is pricier than in metro Melbourne.

  • Market rules: The ACT regulates retail pricing, shielding households from sharp wholesale spikes.

  • Energy mix: States relying heavily on gas or coal are more exposed to global fuel markets.

This is where psychology kicks in: Australians often fall into anchoring bias, comparing today’s bill to their last one, not realising their neighbour in another state may be paying far less for the same kilowatt-hour.

Are prices going up or down in 2025?

Good news for some, not so great for others. Wholesale electricity costs dipped in 2023–24 after record highs, but households haven’t felt much relief. Rising network maintenance costs and the expensive shift to renewables mean retail bills remain sticky at the top end.

Behavioural economists call this the loss aversion effect—we notice every price hike sharply, but hardly register when bills ease only a little.

How do businesses compare?

Small businesses face a similar postcode lottery. In fact, business tariffs can be even more volatile, with retailers offering complex discounts that are tricky to compare. Many businesses don’t review their contracts regularly, leading to higher-than-necessary costs due to status quo bias—sticking with the familiar even when it’s more expensive.

That’s why independent comparisons, like an origin business energy review, matter for anyone trying to keep their overheads lean.

FAQ

Which state has the cheapest electricity?
Tasmania often comes out cheapest thanks to hydro generation, followed by the ACT.

Why is South Australia so expensive?
A mix of heavy reliance on gas, smaller customer base, and less competition keeps prices high.

Can switching providers really save money?
Yes. Discounts, renewable options, and flexible tariffs vary widely between providers. Regular reviews usually lead to savings.

Australia’s electricity story is one of uneven playing fields—your bill depends less on how frugal you are with appliances and more on the postcode printed at the top of the bill. Anyone who’s tried to explain why their cousin in Hobart pays hundreds less a year for the same fridge and air con knows the frustration.

For deeper comparisons between major energy providers, you might find this origin business energy review a useful starting point.

If you want to explore broader price trends, the Australian Energy Regulator provides up-to-date data on electricity costs across the states.

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