How to Compare Electricity Plans

The Three Numbers That Matter

Every electricity plan revolves around three key numbers. To compare plans accurately, you need to look at all three together — not just the usage rate.

1. Usage Charge (c/kWh)

This is the rate per kilowatt-hour (kWh) of electricity you consume. Plans may offer a single flat rate or time-of-use rates (peak, shoulder, off-peak). A low usage rate is attractive, but can be offset by a high daily supply charge.

2. Daily Supply Charge (c/day)

A fixed daily fee for being connected to the grid. Typical range: 80–130 c/day. If you use very little electricity, a low supply charge matters more than a low usage rate.

3. Feed-in Tariff (c/kWh)

If you have solar panels, the feed-in tariff (FIT) is the rate your retailer pays you for excess solar electricity exported to the grid. FITs range from 3–12 c/kWh depending on retailer and state.

Market Offers vs Standing Offers

Market offers are discounted plans that retailers compete on. They typically include a percentage off the usage rate (e.g. 25% off) or a fixed-rate plan. These are often the cheapest options but may have conditions or expire after a period.

Standing offers are the default plans set by retailers — they are more expensive but do not expire. If your market offer ends, you may be rolled onto a standing offer unless you switch or renegotiate.

How to Calculate Your Annual Cost

The easiest way to compare is to calculate the estimated annual cost using your household's usage pattern:

1. Find your annual kWh usage from your last bill (typically 4000–6000 kWh/year for an average home).
2. Multiply by the usage rate.
3. Add the supply charge (c/day × 365).
4. Subtract any solar FIT credits if applicable.
5. Include any discounts or conditional fees (e.g. pay-on-time discount).

Use the Australian Government's Energy Made Easy website for official plan comparisons in NSW, SA, QLD, and ACT. For Victoria, use the Victorian Energy Compare site — both are free and independent.

What to Watch Out For

• Conditional discounts — Some plans offer a discount only if you pay on time or use direct debit. Miss a payment and the discount disappears.
• Expiring benefit periods — A great rate for 12 months may revert to a much higher rate after that period.
• Exit fees — Some plans charge a fee if you leave before the contract ends.
• Green power — Plans with 100% renewable energy offsets may cost more but reduce your carbon footprint.

Reference Prices in 2026: The DMO and VDO

Every retailer must compare its offers against a regulated reference price: the AER's Default Market Offer in NSW, SA and South East Queensland, and the Victorian Default Offer in Victoria. In 2026–27 the DMO fell 3.4–5.0% in NSW and 7.2% in SE QLD but rose 1.4% in SA, while the VDO fell to a typical $1,591 a year for a 4,000 kWh household. These numbers matter because a market offer 15–30% below the reference price is a reasonable deal, and anything at or above it is a signal to switch. The AER publishes the exact figures for each network area.

Flat vs Time-of-Use: Do the Maths

Time-of-use plans only save money if you can shift usage. The mechanism: peak rates (often 30–45 c/kWh in 2026) apply on weekday evenings, while off-peak rates (roughly half that) apply at night and on weekends. If you can move 30% of your usage off-peak, a ToU plan typically beats a flat rate; if your usage is spread evenly through the day, the simpler flat plan often wins. Demand tariffs (common in QLD) charge for your highest 30-minute peak usage — shift heavy appliances out of the peak window or you will pay for a single bad half-hour all year.

Compare Your Bill in 10 Minutes

1. Find your annual kWh from your last bill (average homes use roughly 4,000–5,000 kWh).
2. Enter it plus your postcode into Energy Made Easy (or Victorian Energy Compare in VIC).
3. Sort by estimated annual cost and read the conditions of the top three.
4. Check the Solar Sharer Offer window if you can shift daytime usage.
5. Switch online — most retailers handle it within days, with no interruption.

What About Solar and Batteries?

If you have rooftop solar, compare plans on the feed-in tariff as well as the usage rate — a plan with a 5c/kWh feed-in tariff and a higher usage rate can cost you more than one with a 3c tariff and a lower usage rate, depending on how much generation you export. Under the Solar Sharer Offer (from July 2026 in NSW, south-east Queensland and South Australia), DMO customers with a smart meter get three free hours of electricity daily — 11am–2pm in NSW and SEQ, 12pm–3pm in SA, capped at 24kWh per day. If you can shift washing, dishwashing and EV charging into that window, your effective bill can drop by hundreds of dollars a year.