Some energy plans seem cheaper—until the first bill hits and you're paying more for "discounts" than electricity. The truth? There’s no one-size-fits-all best electricity provider in Australia. But there is a smarter way to choose: through understanding, behaviour, and the right comparison.
Let’s break it down, so you don’t get burned (financially speaking, of course).
Here’s the short version: The “best” provider depends on your location, usage habits, and whether you're willing to switch regularly.
There’s no single winner because prices vary wildly between postcodes and even meter types. That said, here’s what savvy Aussie households and businesses are doing:
Comparing beyond the headline rate (look at the reference price vs. discount tricks)
Using an electricity broker to decode the fine print
Taking advantage of behavioural nudges (like bill smoothing or default plans)
Not all "cheap" plans are truly cheap. Providers play pricing games—just like airlines do with seats. To compare effectively:
Total annual cost based on your usage
Supply charge (daily fee)
Usage charge (per kWh)
Solar feed-in tariffs, if you’ve got panels
Late payment fees, pay-on-time “discounts” (some of which punish you harshly if you miss a date)
Locked-in contracts (without real benefits)
Exit fees
Suspiciously high “conditional discounts”
A 2023 CHOICE report found households could save up to $400 per year just by switching from the default market offer to a competitive market plan (source).
Fixed-rate plans sound safe, but they’re rarely the best deal long-term.
Why? Because electricity rates in Australia can change every 6–12 months, and a fixed plan may lock you into a price above market rate if prices fall. Unless you're risk-averse and prioritise budget certainty, most Aussies will do better reviewing their plan annually.
Let’s look at some rough trends (subject to change, of course):
| City | Cheapest Retailer (Recent Trends) | Notes |
|---|---|---|
| Sydney | ReAmped Energy, Red Energy | Competitive rates, especially for high users |
| Melbourne | GloBird, Tango Energy | Tango offers solid fixed-rate plans |
| Brisbane | Origin (via online offers), ReAmped | SEQ has fewer players due to network costs |
| Adelaide | Simply Energy, AGL | Solar feed-in tariffs vary widely |
| Perth | Synergy (only option) | WA is regulated—no retailer competition |
💡 Keep in mind: Retailer popularity doesn’t equal value. Some smaller providers beat the big names consistently on price.
This is where behavioural economics comes into play—because your psychology affects your energy costs more than your provider does.
If your first plan showed a “25% discount,” you may now judge all future plans against that—even if others are cheaper without a discount. Providers use this to their advantage.
You’re more likely to stick with your current plan to “avoid hassle” than switch—even if switching could save you hundreds. That’s a classic inertia trap.
If you don’t choose a plan actively, you're put on the default market offer—which is almost always higher than negotiated rates. It’s passive punishment.
Behavioural researchers like Adam Ferrier have long warned of these traps—and the energy market is full of them.
In many cases, yes—especially for:
Small businesses with complex energy needs
Homeowners with solar or battery setups
Renters unsure of their best plan
A good electricity broker can decode retailer fine print, match usage patterns to optimal tariffs, and help avoid “shiny offer syndrome.” They're not all equal, though—some are sales agents in disguise. Make sure they’re independent and transparent with commissions.
This is where social proof and trust breakdowns matter.
Two neighbours, same street, same provider. One pays $1,400 a year. The other? $2,050.
Why?
One accepted the first deal that hit their inbox.
The other negotiated—or switched every 12 months.
Comparison is crucial, but so is acting on it. As Dan Monheit says: “Knowing doesn’t change behaviour. Design does.” So design your energy decision like a system—set reminders to review annually and automate switches if needed.
Watch out for these classics:
“XX% off usage charges!” – That might only apply after you hit a threshold.
“Carbon neutral at no extra cost” – Good, but often baked into a higher base rate.
“Smart meter compatible” – Doesn’t always mean it’s smart for you.
Read energy fact sheets (mandatory for all plans). Look at the comparison rate, not just flashy numbers.
Sarah lives in a 3-bedroom rental with two kids and a dog that seems to think the heater is his birthright. She switched from a major retailer to a lesser-known provider via an online broker after realising her pay-on-time “discount” was offset by a higher base rate.
Result? $312 saved annually, no change in behaviour—just smarter pricing.
Sometimes, it's not about using less energy—it’s about buying it better.
Once a year, minimum.
Even better—set a calendar reminder for 30 days before your plan anniversary.
Energy retailers rely on your inertia. Don’t give it to them. Even sending a quick email like:
“Hey, I’ve noticed better offers around. Can you match them or do I need to switch?”
—can unlock deals instantly.
Absolutely. Sites like Energy Made Easy(by the ACCC) and Victoria’s Energy Compare provide independent comparisons without affiliate pressure.
Avoid flashy comparison sites that promote “featured” plans—they often prioritise whoever pays most, not what's best for you.
Is there a best time of year to switch electricity providers?
Yes—July, when the Default Market Offer updates, is a great time to re-check rates.
Do smart meters save money?
Not by themselves. But if you’re on a time-of-use plan and shift usage to off-peak hours, they can reduce your bills.
Can renters switch providers?
Absolutely—if you’re paying the electricity bill, you have the right to choose your retailer.
The best electricity provider isn’t the one with the catchiest ad or biggest discount—it’s the one that suits your usage, your area, and your goals. That might mean switching every year. Or using an electricity broker to help find what works best behind the scenes.
Because when it comes to power bills, the biggest cost is often doing nothing.