Everybody’s been in that dreadful situation where they open their electricity bill and then have to collect their jaw up off the floor.
A high electricity bill always begs the question, are you paying too much for your electricity? To determine that, we must first find out what everyone else is paying and delve into the national average electricity bill.
Luckily, that’s exactly what we’ve done, so grab your pens, reading glasses, and your latest electricity bill, and let’s determine whether you’re overpaying on electricity or not.
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Charges and Rates
Typically, energy bills (or power bills) are split between two different costs, those being your daily supply charges and your usage rates.
The daily supply charge is your standard fixed energy cost of upkeep and doesn’t change regardless of energy usage. These daily supply charges usually range from 80c/day to 120c/day.
Usage rates are where the real chunk of the bill is, as this is the amount you’ll pay for the actual energy you use. In terms of electricity, this is known as c/kWh which is what we’re focusing on. Usage rates are variable, in that it’s unlikely this month’s price will be the same as last month as it’s dependent on your usage.
As mentioned earlier, your bill will always have a set minimum no matter how frugal you are with your energy consumption, but there are factors that attribute to your usage rates.
For instance, machinery in the household like air conditioning, fridges, washing machines, TV’s and even your chargers will take chunks out of your pocket.
The switches on your walls are bad news for your account balance too, as a simple light switch can start adding up the numbers in your average cost as much as the machinery can, especially if they’re not energy-efficient.
For tips and tricks to lowering your electricity usage, check out our Cost-Saving Tips blog section on our website here.
The AEMC (Australian Energy Market Commission) has provided a breakdown of the average annual electricity bill in Australia, showcasing the average per state.
As of December 2021, the Australian average electricity bill is $1,645 / year.
|State||Average Electricity Bill|
|South-East Queensland||$1,226 / year|
|New South Wales||$1,253 / year|
|Victoria||$1,290 / year|
|South Australia||$1,742 / year|
|Western Australia||$1,992 / year|
|Tasmania||$2,004 / year|
|Australia Capital Territory||$2,004 / year|
The figures above are from the Australian Energy Market Commission (AEMC), Residential electricity price trends 2021, Final report, December 2021. These figures reflect the default energy usage of a two-person average household in each state.
To break it down, those living in the capital of Australia or the very south of Australia are feeling the sting of a high electricity bill more so than their neighbours. This is loosely followed by Western Australia, known infamously for their high cost of electricity.
There are sure to be big grins across the face of South-Eastern Queenslanders looking at their low costs, especially since they’ve jumped above NSW and VIC for the lowest average electricity bill in Australia when compared to last year. Victorian’s will feel slighted dropping to 3rd since any Victorian knows they’re facing higher costs in terms of average gas more so than electricity to add onto it.
Therefore, it pays to find a cheaper electricity bill no matter where you are in Australia, whether that be in sunny Brisbane or the colder Sydney.
Checking your bill
Now it’s time to address your electricity bill and see if your pricing is more than average or not, as it’s not as simple to look at the averages above.
With differences in lifestyles and tariffs, there are differences in the state average and your own consumption, which you’ll need to address by observing your latest utility bill.
Thankfully, your energy bills should showcase exactly what you’re after, comparing your kWh (kilowatt hour) usage to those in your neighbourhood. This is typically depicted in a graph highlighting the size of the household, the number of people occupying the area, and whether there is a pool or not.
Below is an example from Energy Australia on what you would commonly find on an electricity bill (which can be found on Energy Australia’s website here.)
To change or not to change?
After assessing whether you’re happy with what you’re currently paying or not, it’s up to you to decide whether it’s time to look at new energy plans or not. There is a multitude of electricity retailers in the electricity market to choose from and it’s important to find the right one for you.
Luckily, MyConnect can help you out. If you need help switching over and connecting electricity, give us a call on 1300 854 478 or use the Get Connected form here! If you’re unsure about using a utility connection company, hopefully, this post here can assist you.