How to Compare Energy Plans in Australia (and Actually Save)
Learn how to compare energy plans in Australia using free government tools, weigh usage vs supply charges, and dodge the discount trap to cut your bills.
By Timothy Hirou GaschereauPublished 11 min read
Energy bills manage to be both enormous and completely baffling at the same time. Retailers shout “20% off!” while your bill quietly climbs every quarter. Learning how to compare energy plans in Australia is one of the highest-return things you can do with an hour of your time: households that switch to a better-matched plan regularly save hundreds of dollars a year.
The best part: it is free, takes about 15 minutes, and will not flicker a single light in your home. It is one of the fastest wins in our wider guide to saving money in Australia. This one cuts through the jargon and gives you a checklist you can actually use. It is part of our compare and choose series, and it is general information only, not advice.
🎯 The essential: The cheapest plan is not the one with the biggest advertised discount. It is the one with the lowest estimated annual cost for YOUR actual usage. Use the free government site for your state (Energy Made Easy, or Victorian Energy Compare in Victoria), enter your usage from a recent bill, and compare total costs. Switching is free and does not cut your power.
Start here: the free government comparison sites
Before anything else, use the right government site for your state. They are independent, run by regulators, and earn no commission from retailers. No sponsored results, no hidden nudges.
- Energy Made Easy (energymadeeasy.gov.au), run by the Australian Energy Regulator, covers NSW, Queensland, South Australia, the ACT and Tasmania.
- Victorian Energy Compare (compare.energy.vic.gov.au) is Victoria's own government site. If you live in Victoria, this is your tool.
- WA and the NT have regulated markets with limited or no retail competition, so your options are narrower. It is still worth checking which tariff structure applies to you.
Enter your postcode, then type in your usage from a recent bill or upload the bill directly. The site does the maths for you.
The reference price: reading “X% below the reference price”
Retailers advertise plans like “18% below the reference price”. The AER sets a benchmark, the reference price (or Default Market Offer), for residential electricity in NSW, SA and south-east QLD, and by law retailers must advertise as a percentage above or below it. Victoria has its own version, the Victorian Default Offer (VDO).
The reference price is a benchmark for a typical household, not yours. A plan 15 percent below the benchmark can still cost you more than one 10 percent below it, if the first has a higher supply charge or a tariff that does not suit your usage. Always compare on estimated annual cost, not the percentage alone.
Read your bill: usage charge vs daily supply charge
Every energy bill has two core charges, and understanding both is the key skill here.
- Usage charge: the rate you pay per kilowatt-hour (kWh) you actually use, in cents per kWh. Use more, pay more.
- Daily supply charge: a fixed fee for every day you are connected, no matter how much you use. Go on holiday for a month using zero power and you still owe it.
| Plan A | Plan B | |
|---|---|---|
| Usage rate | 22c/kWh | 26c/kWh |
| Daily supply charge | 150c/day | 90c/day |
| Estimated annual cost | $1,207 | $1,109 |
Plan A looks cheaper on the usage rate, but the higher supply charge makes it dearer overall for a low-usage home. Always check both numbers.
Tariff types: single-rate, time-of-use, controlled load and solar
- Single-rate (flat): the same price per kWh at any time of day. Simple and predictable, and it suits most households.
- Time-of-use: different rates at peak (weekday evenings), shoulder and off-peak (overnight). You need a smart meter. Great if you can shift usage to off-peak (dishwasher overnight, EV at 2am), pricey if your usage is concentrated in peak hours.
- Controlled load: a separate cheaper tariff for high-draw appliances like electric hot water, which the retailer runs mostly overnight. Worth checking if you have electric hot water.
- Solar feed-in tariff (FiT): the rate the retailer pays for the excess you export. A high FiT is nice, but do not choose on it alone: the usage and supply charges you pay are usually a bigger dollar figure than the FiT credits you earn.
The discount trap: conditional discounts and the benefit period
This is where most households get caught out, so it is where you can save the most.
- Conditional discounts only apply if you meet a condition, usually “pay on time”. Miss a payment by a day and you lose it for that period.
- Guaranteed discounts apply no matter how you pay. Rarer, but they are what they say.
- The benefit period is how long the deal lasts, typically 12 months. After it, many market offers revert to a higher rate, sometimes the most expensive standing offer, and retailers are not loud about it.
When you sign up, set a calendar reminder for about 10 months. When it goes off, go back to the comparison site and check you are still on a good plan. Switching again is free.
How to compare energy plans: the checklist
| Step | What to do |
|---|---|
| 1. Grab a recent bill | Note your usage in kWh (and MJ for gas) and the days in the period |
| 2. Go to the right site | Energy Made Easy, or Victorian Energy Compare in Victoria |
| 3. Enter or upload usage | Uploading the PDF bill is the most accurate method |
| 4. Sort by estimated annual cost | Not by discount percentage. This is the golden rule |
| 5. Check the tariff type | Single-rate, time-of-use, controlled load, solar FiT |
| 6. Read the discount conditions | Conditional or guaranteed? Benefit period? Rate after it ends? |
| 7. Check exit fees | Rare on standard plans, but confirm before switching |
| 8. Switch, then set a reminder | Free, no supply interruption; re-compare in ~10 months |
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❓ Frequently asked questions
What is the reference price (Default Market Offer)?
+
The reference price, also called the Default Market Offer (DMO), is a benchmark price set by the Australian Energy Regulator for residential electricity in NSW, SA and south-east QLD. Retailers must advertise plans as a percentage above or below it, so you can compare on a like-for-like basis. Victoria has its own equivalent, the Victorian Default Offer (VDO).
Is it free to switch energy providers?
+
Yes. Switching energy providers in Australia is free in competitive retail markets. Exit fees on standard residential plans are rare, but check your current contract to be sure. Your new retailer handles the transfer.
Will switching interrupt my power supply?
+
No. Switching retailers does not interrupt your electricity or gas. Nothing physical changes at your property: the same poles, wires and pipes deliver your energy. Only the billing relationship changes.
What is a daily supply charge?
+
The daily supply charge is a fixed fee you pay every day just for being connected to the network, no matter how much energy you use. It is separate from the usage charge, which is based on the kWh you consume. A high supply charge can make a low usage rate more expensive overall.
Should I choose the plan with the biggest discount?
+
Not necessarily. The advertised discount is measured against a benchmark for a typical household, not yours. A plan with a smaller discount but lower usage and supply charges can cost less in total. Always compare on estimated annual cost for your actual usage.
How often should I compare energy plans?
+
At least once a year, and always before your current plan's benefit period ends (usually 12 months). Set a reminder for about 10 months after you sign up. Rates change often, and a quick annual check is one of the easiest ways to keep bills down.
Keep reading
📚 Recommended reading
The Barefoot Investor
Scott Pape
The Barefoot Investor
Scott Pape
Australia's best-selling money book ever. A simple system for accounts, budgeting, debt and a real emergency fund in one.
Making Money Made Simple
Noel Whittaker
Making Money Made Simple
Noel Whittaker
Australia's classic, comprehensive money guide covering tax, super and investing, updated for today.
Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only, not financial advice. Energy pricing varies by state, distributor and usage, and changes often. Always verify current rates on the relevant government comparison site using your own recent bill.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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