Sydney Electricity Price Breakdown: How to Save on Your Bill
Ever looked at your electricity bill and wondered, “Why is this so high?” You’re not alone. Whether you’re renting a unit in the Inner West or own a home out in the suburbs, understanding what’s behind your power costs can help you make smarter decisions and save money along the way.
In this guide, you’ll get a clear picture of the Sydney electricity price situation right now—what the average rates look like, how providers come up with those numbers, and most importantly, how you can find a better deal. We’ll also share a few easy tips that could help lower your bill without having to switch off everything you love.
Average Electricity Prices in Sydney Right Now
If you’re living in metropolitan Sydney, your electricity is delivered via the Ausgrid network. The average usage rate is around 33.7 cents per kilowatt-hour (c/kWh) right now. For those living in the Greater Western Sydney and surrounding areas, you’re connected to the Endeavour Energy network. The usage rate here is slightly higher, averaging 34.2 c/kWh.
These rates are for standard residential single-rate tariffs. The actual electricity bills can vary based on household size, usage patterns, and the specific plan chosen. For instance, a typical two-person household in Sydney might see monthly electricity bills ranging from $101 to $184.
How Electricity Prices Are Calculated in Sydney
To help you make more senses of electricity prices in Sydney, how’s a more detailed breakdown of how they work:
What Goes into an Average Power Bill?
When you open your quarterly bill, your invoice will show a daily supply charge and a per‑kWh usage rate.
Daily Supply Charge: The fixed cost of keeping your home connected to the Ausgrid or Endeavour network. You pay for it even if you use zero kWh. The current daily supply charge ranges from 70c–$1.25 per day.
Usage Rate: The cents you pay for each kilowatt‑hour you actually use. These range from 25c–40c per kWh on flat‑rate plans now. Behind these two line-items on the invoice, you’re really paying for a bundle of five moving parts:
Wholesale energy: This is the cost your electricity retailer pays to buy power from the National Electricity Market (NEM). It can fluctuate daily based on demand, weather, and other market factors.
Network charges (poles and wires): These are fees charged by Ausgrid or Endeavour Energy for transporting electricity from power plants to your home. It covers the cost of maintaining the infrastructure—like power lines, substations, and meters.
Retail costs and margins: Your energy retailer (like Origin, AGL, EnergyAustralia, etc.) handles the customer service side of things—billing, support, and account management. Their cut includes operating costs plus a profit margin.
Environmental schemes: Some of your electricity cost goes towards funding renewable energy and emissions reduction programs.
GST: Yep, electricity bills include the standard 10% Goods and Services Tax. It’s applied on top of all the other costs mentioned above.
Wholesale and network costs make up the lion’s share. In 2025, the Australian Energy Regulator (AER) notes they account for roughly 60 % of the typical NSW bill.
The Default Market Offer (DMO) – Your Price Safety‑Net
The DMO is the government-set “reference price”. Retailers must publish every market plan as a % above or below it, and if you’re on a standing-offer contract they cannot charge you more than the DMO.
The DMO price for a typical home on a single-rate tariff is as follows:
Network (Sydney) | Annual Usage | DMO 6 now (1 Jul 2024 – 30 Jun 2025) | Draft DMO 7 from 1 Jul 2025 | YOY change |
Ausgrid (metro/coastal) | 3,900 kWh | $1,810 | $1,969 | +8.8 % |
Endeavour Energy (western & southwest Sydney) | 4,900 kWh | $2,223 | $2,397 | +7.8 % |
Tariff Options and How They’re Priced
The way you’re charged can also depend on the type of tariff your plan uses:
Single-rate tariff: One flat rate for all usage.
Time-of-use tariff: Different rates depending on the time of day (e.g. peak, shoulder, off-peak).
Controlled load: Separate lower rate for appliances like electric hot water systems that run during off-peak hours.
Each has pros and cons, depending on when and how you use electricity.
How to Find the Cheapest Electricity Plan in Sydney
Once you understand how electricity pricing works, it becomes clear—this is a competitive game. Each retailer sets its own rates and plan features, which means if you’ve been with the same provider for a while, there’s a good chance you could be overpaying.
But worry not, here’s how you can find a better deal:
1. Compare Plans Using Government Tools
Start with a trustworthy, independent comparison site like Energy Made Easy, run by the Australian Energy Regulator. You can enter your postcode and recent bill details to see a side-by-side Sydney electricity price comparison in your area—including usage rates, daily supply charges, estimated yearly costs, and more.
2. Check the Reference Price
The Default Market Offer (DMO) acts as a benchmark, or reference price, set by the government each year. Retailers must show how their plans compare to this amount (e.g. “15% less than the reference price”). Plans that fall well below the DMO could mean better value—but always read the fine print.
3. Understand Usage vs. Supply Charges
Cheapest doesn’t always mean the lowest kWh rate. As discussed, every plan has a daily supply charge and a usage rate. Depending on your usage habits, one might matter more than the other. For example, if you use a lot of electricity, prioritise a low usage rate. If you’re a low user (like someone in a small apartment), a lower supply charge might save you more in the long run.
4. Look Beyond Discounts
When you compare electricity prices in Sydney, some plans advertise big headline discounts—but they often come with conditions. Always check:
Whether the discount is off the usage charge or total bill
How long the discount lasts
If there’s a benefit period or exit fee
Whether the rate is variable or fixed
Don’t let a flashy promo distract you from the real cost.
5. Consider Time-of-Use Pricing (If It Suits You)
If your household tends to use electricity late at night or during off-peak hours, a time-of-use plan could offer savings. Just make sure your usage pattern actually fits—otherwise, you could end up paying more during peak times.
Comparing Electricity Providers in Sydney
With over two dozen retailers, you’ve got a wide choice when it comes to picking the best electricity prices in Sydney. To help you get a sense of what’s out there, here’s a snapshot of some of the cheapest published market offers on the Ausgrid network as of April 2025.
These are based on an annual usage of 3,900 kWh on a single-rate tariff, which is the benchmark the AER uses for Sydney residential customers.
Current DMO for Ausgrid: $1,810/year
Retailer | Plan Name | Key Offers | Estimated Annual Cost | % Below DMO |
Kogan Energy | For Current First Members | $100 sign-up credit (incl. GST) | $1,299 | 28% less |
GloBird Energy | Glosave Residential | Conditional discounts: 26–27% with Direct Debit / Pay on Time | $1,314 | 25%–27% less |
Ampol Energy | Powering On | 10 c/l fuel discount for regular & premium petrol | $1,364 | 25% less |
1st Energy | 1st Super Saver | Pay on Time discount lifts saving to 24% | $1,368 (w/ discount) | 14–24% less |
Energy Locals | Home Classic | $50 referral credit for you and a friend | $1,393 | 23% less |
Sumo | Sumo Spark | Competitive flat-rate pricing | $1,426 | 21% less |
Red Energy | BCNA Saver | Red donates $5 to Breast Cancer Network Australia | $1,435 | 21% less |
Powershop | Switch Saver | $150 sign-up credit (incl. GST) | $1,441 | 20% less |
OVO Energy | The One Plan | 3% interest on credit balances, carbon neutral | $1,477 | 18% less |
Dodo | Market Offer | Often bundled with broadband | $1,491 | 18% less |
Practical Tips to Lower Your Electricity Bill
Let’s face it—even with a cheap electricity plan, bills can creep up on you. But the good news is, a few smart habits and small tweaks can go a long way in trimming your energy costs without sacrificing comfort. Here are some practical ways to start saving:
Switch Off at the Wall
Standby power—also known as “phantom load”—can quietly chew through your electricity. Devices like TVs, microwaves, game consoles, and chargers still use energy even when they’re not in use. Switch them off at the wall when you’re not using them. It’s a small habit that adds up over time.
Be Smart with Heating and Cooling
Air conditioning is one of the biggest energy users in Sydney homes. Set your air con to around 24–26°C in summer and 18–20°C in winter—every degree beyond that can bump up your energy use by around 10%. Also:
Use fans before reaching for the AC
Seal drafts around doors and windows
Close curtains or blinds during extreme heat or cold
Use Energy-Efficient Appliances
When it’s time to replace your fridge, washer, or dryer, check the energy star rating. A more efficient appliance (5, 6 stars or more) might cost a bit more upfront, but it’ll pay off in lower running costs over time. Also, run full loads in washing machines and dishwashers to get the most value from each cycle.
Take Advantage of Off-Peak Rates (If You Have Them)
If you’re on a time-of-use plan, try to run your major appliances—like washing machines, dishwashers, and dryers—during off-peak or shoulder periods. These times are usually 10pm – 7am and weekends, when rates are lower.
Shorten Your Showers
Hot water can make up a big chunk of your energy usage, especially if you’re using an electric system. Cutting your shower time by even just a few minutes can help reduce both water and power bills.
Switch to LED Lighting
LEDs use up to 80% less energy than old halogen or incandescent bulbs and last much longer. Replacing the lights in your home—even gradually—can lead to noticeable savings over the year.
Monitor Your Usage
Many electricity retailers now offer apps or online dashboards where you can track your usage in real time. Keeping an eye on your daily habits can help you spot trends and make adjustments before the next bill rolls in.
Consider Solar (Even Without a Rooftop Setup)
You might think solar is only for homeowners with panels installed on the roof—but that’s no longer the case. These days, solar generators offer a flexible, plug-and-play solution for cutting your electricity bill, backing up your home during blackouts, or powering appliances off-grid.
A solar generator combines portable solar panels with a portable power station that stores the energy you collect during the day. It’s a simple way to tap into free, renewable energy—without the hassle of full home installation.
One of the most versatile options out there right now is the EcoFlow DELTA 2 Solar Generator. It’s compact, powerful, and packed with features that make it ideal for both everyday savings and emergency use. The EcoFlow DELTA 2 Portable Power Station has a base capacity of 1024Wh, enough to run essentials like your fridge, microwave, and Wi-Fi router for a few hours. And if you need more juice? You can expand it up to 3040Wh with extra batteries.
Thanks to its 1800W AC output and X-Boost tech, it can handle over 90% of household appliances—including high-demand devices like coffee machines or kettles. Pair it with EcoFlow’s portable solar panels (like the 400W or twin 220W setup), and you’ve got a full solar generator that can recharge in as little as 2.3 hours in good sunlight.
You can store solar energy during the day and use it during peak grid hours (typically between 3 pm and 9 pm), helping offset your electricity usage when prices are highest.
The DELTA 2 uses LiFePO₄ battery chemistry, which means you’ll get over 3,000 charge cycles—roughly a decade of regular use. And if the grid goes down? It automatically kicks in to keep your lights, fridge, and internet running, thanks to built-in emergency power supply (EPS) functionality.
Everything is managed through the EcoFlow app, so you can monitor and control your setup from your phone via Wi-Fi or Bluetooth—whether you’re off-grid or just in the backyard.
Conclusion
Sydney electricity price isn’t set in stone—and neither is your power bill. By understanding how pricing works and comparing your options, you give yourself a real chance to cut back on costs. Whether it’s choosing a better plan, making small changes at home, or simply knowing what to look out for, you’ve got more power (pun intended) than you might think.
FAQs
How much does electricity cost in Sydney?
The average electricity usage rate in Sydney right now is approximately 33.7 cents per kilowatt-hour (c/kWh) for residential customers on the Ausgrid network, and about 34.2 c/kWh Endeavour Energy network. Additionally, daily supply charges typically range from 70 to 125 cents per day, depending on your specific plan and provider.
Who has the cheapest electricity in Sydney?
Currently, some of the most competitively priced electricity plans in Sydney are offered by:
Kogan Energy: Approximately 28% below the Default Market Offer (DMO) reference price.
GloBird Energy: Around 25% below the DMO.
Ampol Energy: Also about 25% below the DMO.
These percentages are based on a standard annual usage of 3,900 kWh for a residential customer on a single-rate tariff within the Ausgrid network.
Can I lock in a fixed electricity rate in Sydney?
Yes, several electricity providers in Sydney offer fixed-rate plans. These plans allow you to lock in your usage and supply charges for a set period, typically one or two years. This means your rates won’t change during the contract term, providing some protection against market fluctuations.