Who has the highest electricity prices in Australia?

 Electricity bills are one of those topics that make Aussies wince before even opening the envelope. And for good reason: some parts of Australia are paying noticeably more than others. In fact, depending on where you live, the same amount of power can cost hundreds of dollars more each year.

Which state has the highest electricity prices in Australia?

As of 2025, South Australia consistently records the highest average household electricity prices. This isn’t new — the state has held the title for years due to its unique energy mix and heavy reliance on renewables paired with limited local baseload generation. When the wind isn’t blowing or the sun isn’t shining, South Australia often has to import power from Victoria, which pushes up wholesale prices.

Here’s a quick comparison of average annual electricity costs for a typical household:

State / TerritoryAverage Household Bill (est. 2025)Key Reason for Price Level
South Australia~$2,000+ per yearHigh reliance on renewables, limited local generation, transmission costs
Queensland~$1,500–$1,700Strong competition, government subsidies keeping prices lower
New South Wales~$1,700–$1,900Network charges and growing demand pressures
Victoria~$1,600–$1,800Competitive retail market but rising wholesale costs
Tasmania~$1,700Hydro-dominant system, limited competition
Western Australia~$1,600Government-regulated pricing offsets costs
Northern Territory~$1,700+Isolated grid, small market size keeps costs higher

(Sources: ACCC reports, AEMO data, Canstar Blue surveys, 2024–2025 estimates)

Why is electricity more expensive in South Australia?

A few factors combine to keep SA at the top of the list:

  • Generation mix: Heavy reliance on renewables without enough baseload backup means prices swing wildly with supply and demand.

  • Interconnector reliance: When local supply dips, power must be imported from Victoria — and that comes at a premium.

  • Market size: A smaller customer base spreads infrastructure costs across fewer households, making bills higher.

Anyone who’s lived in Adelaide during a heatwave knows the sting of a summer bill. Peak demand pushes wholesale prices through the roof, and those costs trickle down to households.

How do electricity retailers and brokers fit into this?

Here’s where things get interesting. The high variation in bills across states isn’t just about generation — it’s also about retail competition. In states like Queensland and Victoria, a wide choice of retailers gives households the power to shop around for better deals.

But navigating dozens of offers, discounts, and hidden fees can feel like a full-time job. That’s why more Australians are turning to electricity brokers, who can analyse usage patterns and match households or businesses with the most cost-effective plan available. It’s like having a mortgage broker — but for your power bill.

What can households do to manage high electricity prices?

  • Switch providers regularly: Loyalty rarely pays in the retail energy game.

  • Use government comparison tools: The AER’s Energy Made Easy site shows up-to-date offers.

  • Consider brokers: They can simplify the process and uncover deals not widely advertised.

  • Invest in solar: Rooftop solar continues to pay for itself quickly in high-price states like SA.

  • Shift usage: Running appliances off-peak can make a meaningful dent in bills.

FAQ

Which Australian city has the highest power bills?
Adelaide households generally face the highest electricity bills due to South Australia’s wholesale market dynamics.

Why are Queensland bills cheaper?
Government rebates and subsidies keep retail prices lower, alongside a stronger competitive market.

Are electricity prices likely to fall in 2025?
Most forecasts suggest only marginal decreases, with wholesale volatility continuing to influence retail bills.

Electricity costs will always vary by state, but one truth remains: South Australians are paying the most, while households in Queensland and Victoria tend to fare better. And while government schemes offer some relief, the smartest way to keep bills under control is to compare regularly and explore services like electricity brokers, who specialise in cutting through the retail noise. For context on long-term price trends, the ACCC’s electricity market reports are a trusted resource.

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