Who has the highest electricity prices in Australia?

 Most Aussies have felt that little sting when the power bill arrives. It is the moment you look at the total and wonder how electricity went from being a household essential to a household shocker. The short answer is that some states consistently pay more than others, and a few surprising culprits sit at the top of the list.

Right now, South Australia tends to hold the title for the highest electricity prices in the country, followed closely by Queensland and New South Wales. Anyone who has lived through a sticky Adelaide summer with the air con running knows this all too well.

Why are electricity prices higher in some states?

A mix of supply constraints, network costs, wholesale volatility, and market competition shapes these price differences. Some states rely heavily on interstate supply. Others deal with older grid infrastructure that costs more to maintain. Put simply, the price you pay often depends on where you live, not how much you use.

Behavioural economics calls this the framing effect. The way bills are structured makes it hard for people to compare prices easily across states, so our perception of what is cheap or expensive shifts quietly in the background.

Which state consistently pays the most?

South Australia is often ranked as the highest priced electricity market on average. The state has a unique generation profile that leans heavily toward renewables, which is excellent for the environment but tricky when demand spikes. Wholesale costs jump, and retailers pass that through to customers.

Queensland has also seen significant rises, although competition has helped soften some of the impact. Victoria usually sits lower overall, thanks to more retailer choice and historically cheaper wholesale supply.

What role does retailer competition play?

Competition is where pricing differences really appear. Retailers in some states operate in a tight and crowded market. Others deal with limited choice, higher network fees, and more unpredictable wholesale costs.

This is why so many households turn to electricity brokers, who sift through the pricing mess and reveal what people would struggle to find alone. It is a classic example of reciprocity. People appreciate someone doing the hard work first, then feel more confident making a decision.

How high prices change consumer behaviour

Anyone who has tried to soften a summer bill knows the drill. You turn appliances off at the wall, compare smart meters, and second guess every minute the heater stays on during winter. These habits come from loss aversion. We feel the pain of losing money far more strongly than the reward of saving it.

Rising prices have also pushed small businesses to shop around more aggressively. Cafes, gyms, and retail spaces depend heavily on predictable operational costs. A single spike in electricity can wipe out a good month.

Are wholesale prices still unstable?

Wholesale electricity prices can swing quickly. Weather events, generator outages, fuel input costs, and grid congestion all trigger sudden changes. According to the Australian Energy Market Operator, national wholesale prices have eased from pandemic highs, but volatility remains a real issue. You can see more data on this through AEMO’s official reporting here:
Australian Energy Market Operator Data

Which customers feel the increase the most?

Households on standing offers feel it first, since those plans are usually priced higher. Renters often cop the worst of it because they cannot change appliances or improve insulation. Regional customers also face higher network charges due to distance and grid limitations.

This is where the combination of social proof and authority matters. When people see peers switching plans or using comparison tools, they follow because it feels like a safer decision.

Are prices likely to drop soon?

Experts expect some easing over the next few years as renewable projects expand and storage improves. However, the grid transition takes time. Costs can fall in one quarter and rise again the next, which makes prediction tricky. Most specialists agree that households benefit more from comparing plans often rather than waiting for the market to shift.

FAQ

Which state currently has the highest power bills?
South Australia generally tops the list for average residential electricity prices.

Why are some states cheaper than others?
Differences in network fees, competition, wholesale costs, and generation types all play a role.

Is it worth switching retailers?
Yes. Even small pricing differences add up over a year, especially for larger households.

Final thoughts

Electricity prices in Australia have always been a bit uneven. Some states pay far more than others, and the reasons stretch from geography to infrastructure to market design. The best defence is staying informed and comparing your options regularly. Even a quick look at what other retailers charge can shift your entire perspective, especially if resources like electricity brokers or breakdowns such as this piece on electricity brokers help simplify things.