The Ultimate Guide to Cheap Electricity and Gas in Australia 2025
In Australia, managing household expenses effectively is a top priority for many families, and energy costs often represent a significant portion of monthly bills. Rising electricity and gas prices, coupled with increasing living expenses, have made it more important than ever to understand how to secure the cheapest electricity and gas deals.
In this guide, we dive into the current electricity and gas costs in Australia, explore the key factors affecting energy prices, discuss the best tools to compare providers, and offer practical strategies to reduce your bills. Dive in now!
Current Average Electricity and Gas Prices Compare
Understanding average energy prices across different regions is the first step to making informed decisions. Prices vary due to state regulations, supplier competition, and availability of resources. Below is a comparison of the current average costs for electricity and gas.
Electricity Price
Here is a quarterly comparison of the average electricity bill by state:
State | Average Quarterly Bill |
New South Wales | $430 |
Victoria | $331 |
Queensland | $374 |
South Australia | $383 |
Western Australia | $270 |
Victoria and Western Australia enjoy the lowest average electricity bills, while New South Wales tops the chart as the most expensive. These differences reflect variations in supply chains, state-level energy policies, and access to renewable energy.
Gas Price
Now, let’s see a quarterly comparison of the average gas bills:
State | Average Quarterly Bill |
New South Wales | $219 |
Victoria | $263 |
Queensland | $232 |
South Australia | $215 |
Western Australia | $132 |
Western Australia offers the cheapest gas prices, largely due to local gas production and state policies aimed at keeping energy affordable. In contrast, Victoria’s colder climate and higher gas usage contribute to higher average costs.
Factors Affecting Regional Price Variations
Now we know that both the electricity and gas rates vary a lot for different regions in Australia. Why? Below, let’s look at what causes these variations across states.
Fuel Costs and Supply Constraints: The prices of coal, gas, and oil significantly influence electricity costs. For instance, gas prices have shown a strong correlation with electricity prices in the National Electricity Market (NEM) over the past decade. Supply constraints, such as reduced gas reserves, can lead to price spikes, especially during high-demand periods like winter.
Generation Mix: Regions relying more on renewable energy sources, like South Australia with its high wind and solar penetration, often experience different pricing dynamics compared to those dependent on fossil fuels. The variability of renewable generation can lead to price fluctuations, especially when backup from gas-fired plants is required.
Network Infrastructure: The costs associated with building and maintaining transmission and distribution networks impact regional prices. Areas with aging infrastructure or limited interconnections may face higher costs due to inefficiencies and the need for upgrades.
Regulatory Policies: State-specific policies, such as Victoria's renewable energy targets or Western Australia's domestic gas reservation policy, influence local energy markets. These policies can affect supply, demand, and investment in energy infrastructure, thereby impacting gas or electricity rates.
Demand Patterns: Seasonal variations, economic activities, and weather conditions influence energy demand. For example, extreme temperatures can lead to increased use of heating or cooling systems, driving up electricity consumption and prices.
Market Competition and Provider Offers: In deregulated markets like Victoria and New South Wales, energy providers compete for cheap electricity rates by offering discounts and flexible plans. These promotions can make a substantial difference in prices, especially when compared to regulated markets with fewer choices.
In summary, regional electricity and gas prices in Australia are shaped by a complex interplay of fuel costs, generation sources, infrastructure, regulatory frameworks, demand patterns, and market competition. Understanding these factors is crucial for consumers to navigate and respond to energy market dynamics effectively.
Top Tools to Compare Electricity and Gas Plans
With so many providers and plans, it’s crucial to compare before locking in a deal to reduce your electricity and gas bills. Fortunately, several online platforms make this process easy.
Energy Made Easy: A free, independent government service for residents in NSW, QLD, SA, TAS, and ACT. Enter your postcode and usage details to compare plans from all retailers in your area.
Compare the Market: Offers a user-friendly platform to compare electricity and gas plans. Input your address and energy usage to view available deals and switch providers seamlessly.
Selectra Australia: Allows you to compare and switch to a cheaper home energy. Simply enter your postcode, and it displays a list of available providers and plans, sorted by the cheapest prices and best offers.
Mozo: Compares over 160 energy plans from leading providers. Enter your postcode to see personalized results and potential savings.
Energy Watch: Helps you compare a range of electricity and gas plans to find potential savings.
EnergyPlans.com: Provides a straightforward comparison tool to find competitive electricity and gas plans tailored to your needs.
Strategies to Reduce Your Energy Bills
Apart from choosing a cheap electricity and gas plan, reducing your energy bills is achievable through a combination of smart habits, efficient appliances, and strategic home improvements. Here are several practical strategies to help lower your household energy costs:
Upgrade to Energy-Efficient Appliances
Replacing outdated refrigerators, air conditioners, washing machines, and more with energy-efficient appliances can lead to significant savings. Look for appliances with high energy ratings, as they consume less electricity and perform more efficiently.
Furthermore, consider smart appliances that allow you to schedule operations during off-peak hours. This simple adjustment helps reduce electricity consumption without changing your lifestyle.
Optimize Heating and Cooling
Heating and cooling account for a large portion of energy use. Installing a smart thermostat allows you to program temperatures based on your schedule, reducing unnecessary heating or cooling when you're not home. Additionally, sealing drafts and insulating your home can maintain indoor temperatures more effectively.
Moreover, regularly servicing your heating and cooling systems, like cleaning or replacing filters, ensures they operate efficiently.
Install a Solar Generator to Reduce Grid Dependence
A solar generator helps reduce reliance on the grid by storing solar energy for later use. This allows you to avoid high tariffs during peak times and ensures backup power during outages.
A great example is the EcoFlow DELTA Pro 3 Portable Power Station, a plug-and-play portable power station featuring a maximum continuous output of 4,000 watts and a substantial 4,096Wh battery capacity—enough to power most household appliances with ease.
It’s estimated that using a single unit of EcoFlow DELTA Pro 3 can reduce your daily energy consumption by approximately 22%. Adding an extra battery can boost your savings to around 44%.
EcoFlow DELTA Pro 3 Portable Power Station
Common Mistakes When Searching for Cheap Energy
There are also some common mistakes that can lead you astray when searching for cheap energy. Avoid these common pitfalls to ensure you’re truly getting the best deal:
Focusing Only on the Discount Percentage: Some providers advertise large discounts, but these are often based on inflated standard prices. Always compare the final estimated annual cost instead of focusing solely on percentage discounts.
Ignoring Daily Supply Charges: Low usage rates are attractive, but high daily supply charges can quickly negate any savings, especially for households with low energy consumption.
Not Reading the Fine Print on Contracts: Watch for hidden fees, such as early termination charges, late payment penalties, and price changes after an initial fixed term.
Overlooking the Value of Green Energy Plans: While some renewable energy plans may seem more expensive initially, they can offer long-term savings and environmental benefits that outweigh short-term costs.
Neglecting to Check for Solar Feed-In Tariffs: If you’ve installed solar panels, make sure you’re getting compensated for excess energy sent back to the grid. Feed-in tariffs vary greatly between providers, and finding a higher-paying option can boost your savings substantially.
Conclusion
Securing cheap electricity and gas in Australia requires a proactive and informed approach. By understanding average prices, leveraging comparison tools like Selectra, and implementing smart energy-saving strategies like opting for solar generators, you can significantly reduce your bills while contributing to a greener, more sustainable future. Don’t settle for overpriced energy plans—explore the cheap energy suppliers, compare carefully, and make the switch when it makes financial sense.
FAQs
Who has the cheapest electricity and gas in Victoria?
As of 2025, Tango Energy offers some of the cheapest electricity plans in Victoria, with prices of around $1,090 per year, well below the Victorian Default Offer. For gas, GloBird Energy and Powershop are frequently noted for competitive rates. Plan suitability may vary based on household usage and location.
What is the cheapest energy provider in SA?
In South Australia, Momentum Energy, GloBird Energy, and OVO Energy consistently offer low-cost electricity plans. Momentum’s “Nothing Fancy” plan is often cited for affordability. Always compare providers through Energy Made Easy or similar tools to find the best rates for your specific usage.
Who is the cheapest for electricity at the moment?
Now, GloBird Energy and Tango Energy are among the cheapest electricity providers in 2025, offering plans significantly below reference prices in several states. Their competitive rates and discounts make them strong options, but comparing current deals is key to ensuring the best fit for your location.
Which is the cheapest to run gas or electric?
Electric appliances are generally cheaper to run in Australia today, especially with energy-efficient models like heat pumps. While gas used to be more cost-effective, rising gas prices and stable electricity rates, especially with solar energy, have made electricity the more economical choice for many households.