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Average Electricity Bill in Australia 2021: Cost of Electricity and Gas by State

Knowing how your energy usage and costs compares to other Australian households can help you manage your electricity and gas to lower your energy bills. Discover how your households average electricity and gas costs compare to the rest of the country, as well as ways to be below average, by reading more below

How is my energy bill calculated? Supply charges and usage rates

Energy bills are divided into two costs: your daily supply charge, and your usage rates. If you live in a deregulated part of the country, your energy provider is the one to set these charges.

Usage rates and daily supply charges can be fixed or variable. If your energy plan is on a fixed rate, your usage rates and supply charges won’t change during the benefit period (usually 12 months). However, if your energy plan is variable rate, your energy provider is free to change your usage rates and supply charges when they want, with written notice to you.

Average electricity bill in Australia 2021

The average cost of electricity in Australia varies drastically from state to state. While residents of New South Wales enjoy some of the lowest electricity costs in the country, those living in the Australian Capital Territory, and South Australia have some of the highest electricity costs. Despite the recent trend of increasing electricity costs across the country, new reports from the AEMC show that in the next few years, electricity prices should be reducing within the National Electricity Market as the government attempts to tackle inflating energy costs

Average electricity bill by state (2020/2021)

Below, you can find a breakdown of the average annual electricity bill for Australians state-by-state. These numbers are based on three-year trends reported by the AEMC in their Annual Electricity Price Trend Report for 2019.

Average annual electricity bill in Australia 2020/2021
State Average electricity bill
South-East Queensland
$1,334 / year
New South Wales
$1,292 / year
Australia Capital Territory
$1,967 / year
Tasmania
$1,673 / year
Victoria
$1,132 / year
South Australia
$1,884 / year
Western Australia
$1,831 / year
Source: AEMC Annual Electricity Price Trend Report 2020. Tasmania report from the Tasmania Government Economic Regulator 2020 Report based on medium-usage customer with a total consumption of 5,781kWh per year on Tariff 31 & Tariff 41 with no concessions.

Average electricity cost per kWh

Knowing the average cost of electricity in Australia per kWh can be a help when comparing and switching electricity providers. Average electricity usage rates are highest in South Australia, while lowest in South-East Queensland and Victoria.

Average cost of electricity per kWh by state 2021
State Average electricity usage rates per kWh
South-East Queensland
22.3c / kWh
New South Wales
25.7c / kWh
Victoria
20.6c / kWh
South Australia
33.8c / kWh
Source: Calculated average usage rates between leading electricity retailers within the NEM: AGL, Origin, EnergyAustralia, Red Energy, Alinta Energy, and
Simply Energy. Updated April 2021

Average electricity daily supply charge

Your daily supply charge is how much your energy provider charges you to supply energy to your property. This is a fixed daily amount, in c/day, that is not affected by how much energy you use and applies to both electricity and gas supply. If you live in the National Electricity Market (Victoria, New South Wales, South East Queensland, and South Australia), your energy provider is free to set their own daily supply charge.

Average daily supply rate (electricity) by state
State Average daily supply rate
New South Wales
81.9c / day
South Australia
92.4c / day
Queensland
99.5c / day
Victoria
108.3c / day
Supply charges based on average rates for the six biggest energy providers in Australia: Origin Energy, AGL, EnergyAustralia, Click Energy, Red Energy, and Alinta Energy. Rates vary depending on location.Simply Energy. Updated April 2021

Average gas prices in Australia 2021

Average gas bills in Australia vary widely, depending on a number of factors. What you use gas for (hot water, pool heating, total-home heating, and cooking for example), the size of your home, and how many people live there can all drive up your households average gas bills. As shown below, Western Australians enjoy some of the lowest gas costs per quarter, while those in South Australia and the ACT have some of the highest gas bills

Average quarterly gas bill by state
State Average quarterly gas costs
Western Australia
$108 / quarter
Queensland
$172 / quarter
New South Wales
$184 / quarter
South Australia
$223 / quarter
Victoria
$186 / quarter
ACT
$295 / quarter
Source: Canstar Blue Average Gas Bill by State Feb 2021

Average gas cost per MJ in Australia

Below is the estimated average gas rates for each state within the National Electricity Market, based on the average natural gas rates (in cents per MJ) for the top six energy companies in the market. Your actual natural gas rates will vary depending on your location and provider.

Average cost of natural gas per MJ by state 2021
State Average electricity usage rates per MJ
South-East Queensland
4.4c / MJ
New South Wales
2.4c / MJ
Victoria
2.4c / MJ
South Australia
3.5c / MJ
Source: Calculated average usage rates between leading gas retailers within the NEM: AGL, Origin, EnergyAustralia, Red Energy, Alinta Energy, and
Simply Energy. Updated April 2021

Average gas daily supply charge

Like electricity, your natural gas bill is divided into two charges, your daily supply charge and usage rates. Below is the average daily supply charge by state, in cents per day for a natural gas connection. Your actual daily supply charge will vary depending on location and provider.

Average daily supply rate (gas) by state
State Average gas daily supply rate
New South Wales
59.8c / day
South Australia
75.7c / day
Queensland
75.9c / day
Victoria
72.8c / day
Supply charges based on average gas rates for the six biggest energy providers in Australia: Origin Energy, AGL, EnergyAustralia, Click Energy, Red
Energy, and Alinta Energy. Rates vary depending on location. Updated April 2021

Energy usage breakdown: Where is my energy going?

According to the SA Gov website, the average Australian home used almost 40% of their household’s energy consumption for heating and cooling. This includes both gas and electric heating, as well as air conditioning. In total, the average Australian household’s energy breakdown includes:

Ways to reduce your energy bills

Now that you are able to compare your average electricity and gas bill compared to other residential households in Australia, you might be wondering how you can reduce your energy consumption and save money off your next energy bills. Thankfully there are a lot of ways to reduce your energy bills, from small changes you can make today, to bigger, total-home renovations that will save you more in the long run.

There are tons of things you can do, from small, every-day changes to drastic total-home improvements, which can help you reduce your energy consumption, and bills, and become below average (at least where electricity and gas costs are concerned).