Who has the highest electricity prices in Australia?

 Australia’s energy prices are a national sore spot — and if you feel like your electricity bill has grown its own postcode, you're not imagining things. In fact, some regions in the country are paying dramatically more for power than others. And while factors like privatisation, infrastructure, and geography all play a part, the real answer isn’t as simple as “just switch retailers”.

Let’s cut through the confusion with a state-by-state look at who’s paying the most, why it’s happening, and what you can actually do about it.

Who has the highest electricity prices in Australia right now?

Tasmania and South Australia consistently report the highest average residential electricity prices in the country.

  • Tasmania: Despite being powered by hydro (and often exporting energy to the mainland), Tassie’s residents have among the highest retail rates. The culprit? A small customer base, network costs, and less retail competition.

  • South Australia: Often topping the national leaderboard for electricity costs, SA has high reliance on renewables and expensive peaking gas plants. While its transition to clean energy is admirable, that shift comes with short-term costs to consumers.

Meanwhile, New South Wales and Victoria sit in the mid-range, while Queensland and Western Australia often offer lower residential rates — thanks to subsidies, government-owned networks, and greater generation capacity.

Why is electricity so expensive in some states?

There’s no one-size-fits-all reason — but here’s a breakdown of the big contributors:

  • Network Costs: Remote or regional areas pay more to maintain poles and wires. Tasmania and SA suffer here.

  • Retail Competition: In states with fewer energy retailers (like WA and NT), customers often don’t have access to cheaper market offers.

  • Generation Mix: States heavily reliant on gas (which is volatile in global pricing) tend to see higher peaks during demand surges.

  • Renewable Transition Costs: While renewables are cheaper in the long run, the short-term costs of integrating wind and solar (like storage, backup power, and grid upgrades) get passed on to consumers.

  • Weather Extremes: Hot summers and cold winters spike demand, particularly in SA and TAS — leading to price surges.

What are the current average residential electricity rates by state?

Here's a recent snapshot (2025 estimates for typical flat-rate tariffs):

State/TerritoryAverage Cost (c/kWh)
South Australia37–41 cents
Tasmania35–38 cents
Victoria31–35 cents
New South Wales30–34 cents
Queensland27–31 cents
Western Australia~29 cents (regulated)
Northern Territory~28 cents (regulated)
ACT25–28 cents

Note: These prices vary depending on the provider, usage level, and whether the customer is on a standing offer or market contract.

Why does Tasmania pay so much despite having cheap hydro?

It’s one of the most frustrating contradictions in Australia’s energy story. Tasmania generates the majority of its electricity from renewable hydro — yet residents still face high bills.

Here’s why:

  • Limited Retail Competition: There’s essentially one major player (Aurora Energy), and competition drives prices down elsewhere.

  • Transmission Costs: The island’s network is costly to maintain due to geography.

  • Interconnector Costs: Tasmania exports electricity to the mainland via Basslink (and soon, Marinus Link). Infrastructure costs for this are baked into bills.

In short, Tassie’s clean energy success doesn’t automatically mean cheaper bills — unless retail competition and network pricing are addressed.

Are South Australians still paying the most?

Yes — but the story’s getting more interesting.

South Australia has made massive investments in solar, battery storage (think: Hornsdale), and even virtual power plants. It now regularly hits 100% renewable generation during the day.

But:

  • Gas is still a backup — and gas is expensive.

  • Solar helps during the day — but not always at peak times (cold evenings, heatwaves).

  • Retail margins and network costs are still significant.

Over time, those daytime renewables will bring average costs down — but for now, many households still feel the sting.

What can Aussies do to lower their power bills?

It’s not just about finding a “cheaper plan” — though that helps. Here are practical ways to save:

  • Compare market offers: Many Aussies are still on standing offers that cost more. Sites like Energy Made Easy let you compare retailers based on your actual usage.

  • Use an energy broker: For complex setups or business use, brokers can identify market offers you might never see advertised publicly — especially in deregulated states.

  • Go solar if viable: While upfront costs are high, solar payback periods in sunny states are shorter than ever — sometimes 3–5 years.

  • Time-of-use plans: If you use most of your power in off-peak hours (e.g., late at night), these plans can cut costs dramatically.

  • Audit appliances: Old fridges, heaters, or dryers can be silent energy hogs. Swapping them for energy-efficient models often pays off faster than you'd think.

Has privatisation made energy prices worse?

Let’s be real — privatisation hasn’t lived up to the promise of cheaper bills.

In states like Victoria and NSW, where networks and retailers were privatised decades ago, prices soared during the 2000s and 2010s. The theory was that competition would drive prices down. But instead, we saw:

  • High marketing costs

  • Complex plans that confused consumers

  • Retail margins outpacing inflation

That said, reforms since 2019 — including default market offers and better transparency — have started to claw back some fairness. But the legacy of privatisation is still felt in household budgets.

FAQ

Which state has the cheapest electricity in Australia?
The ACT typically offers the lowest average residential prices, thanks to strong government policy and ownership of key energy assets.

Are regulated states better off?
In some ways, yes. WA and NT residents don’t have to shop around — but they also don’t benefit from aggressive market discounts that exist in the eastern states.

Will energy prices drop in 2026?
Forecasts suggest a mild drop, especially as more renewables come online. But transmission bottlenecks and global gas markets will still influence the final bill.

Energy prices are one of those things that feel out of our control — but in reality, there are levers we can pull. From switching providers to embracing smart tech and behavioural shifts, the needle can move.

For anyone navigating the changing energy landscape, especially businesses and high-usage households, finding the right energy broker can unlock smarter ways to buy, use, and even sell back power.

Because in this game, staying passive can cost you — and not just on your next bill.

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