Which energy company is the cheapest?

 Some energy retailers shout about cheap prices—but when the bill lands, it feels like a punch in the gut. So, which energy company is actually the cheapest in Australia? Spoiler: it depends on where you live, how you use power, and what you value—price, green energy, customer service, or flexibility.

Let’s cut through the confusion, marketing gimmicks, and comparison trap. This guide helps you get real clarity—backed by behavioural science, strategy, and a few hard-earned Aussie truths.

What's the cheapest energy company in Australia right now?

The short answer: there’s no single “cheapest” for everyone, but right now, retailers like ReAmped Energy, OVO Energy, and GloBird are consistently undercutting the big names in many regions.

However, each provider has quirks. For instance:

  • ReAmped often offers the lowest headline rates but pushes you to manage everything online—no call centre support.

  • OVO Energy blends good pricing with a strong renewable pitch and simple billing.

  • GloBird is aggressive on pricing but has mixed reviews on service.

Meanwhile, traditional giants like AGL and Origin play a long game with bundled deals, solar packages, and usage rewards. These can work in your favour if you stick around long enough—and read the fine print.

“Anyone who's ever switched providers knows it’s not just about price. It’s about whether the plan actually fits your household’s habits.”

How do energy plans actually work?

Here’s the psychological bait-and-switch: most Australians focus on usage rates and discounts. But the real kicker? Daily supply charges and conditional discounts based on confusing criteria.

Typical pricing structure includes:

  • Usage charge (c/kWh) – what you pay per unit of electricity

  • Supply charge (c/day) – what you pay regardless of how much you use

  • Conditional discounts – “pay on time” or “pay by direct debit” traps

So, a company with low usage rates might sting you with high daily fees. It's classic framing bias—where we zero in on attractive numbers while missing the bigger cost picture.

Why do the same companies offer different prices across states?

Because electricity isn’t a one-size-fits-all deal. Retailers negotiate wholesale rates with distributors in each state. So AGL might be super competitive in Victoria, but meh in Queensland.

Also, some energy companies go hard in deregulated markets like NSW and SA—but aren’t even available in WA, NT, or TAS due to government-controlled supply.

This is where smart Aussies lean on comparison inertia—checking energy plan aggregators every 12 months. It's not fun, but it pays off. Some providers rely on your laziness to quietly hike up rates after your contract expires.

Are smaller energy companies worth trusting?

Short answer? Often, yes.

Here’s why:

  • ACCC and AER regulations keep dodgy players out of the market.

  • Most small players buy energy from the same wholesale pool as the big guys.

  • Newer companies often leverage behavioural nudges—like simplified bills or clear value messaging—to earn trust.

But service matters. If you're the type who wants to talk to someone when things go wrong, the big retailers like AGL, Origin, or EnergyAustralia might offer more comfort.

Still, there's increasing social proof that Australians are jumping ship. In fact, the AER’s 2024 Retail Energy Report showed over 21% of households switched providers last year—driven mostly by frustration with loyalty penalties and billing confusion.

Is green energy always more expensive?

Not anymore. Thanks to demand and tech improvements, green plans are no longer the “premium” option. Many green-focused retailers—like Powershop or Amber Electric—offer rates competitive with traditional plans, especially if you have solar panels or a battery.

Amber, for example, passes on real-time wholesale prices, which can be a win if you're savvy and flexible. But again, loss aversion plays a role—people fear the volatility of wholesale pricing more than they appreciate the long-term savings.

And if you’re on a standard flat rate? You might be paying a green premium without even knowing it. Check your Energy Fact Sheet.

What’s the deal with AGL—cheap or not?

AGL, one of Australia’s oldest and largest retailers, is rarely the cheapest on face value—but often competitive when bundling in:

  • Solar feed-in tariffs

  • Gas + electricity discounts

  • Flexible billing and rewards

It’s also one of the few providers with long-term infrastructure investment, which may appeal to those who value brand authority and stability over lowest-cost promises.

That said, some recent AGL Energy Reviews suggest the gap between AGL and smaller players is closing—especially for savvy customers who are willing to compare and churn every 12 months.

Quick checklist: how to find the cheapest plan for you

Before switching, ask yourself:

  • Do I prefer online-only or do I want phone support?

  • Am I likely to miss a bill deadline (conditional discounts = traps)?

  • Is a solar feed-in tariff important?

  • Do I use most of my power during the day or evening?

Then:

  1. Use the Energy Made Easy government tool to compare plans: https://www.energymadeeasy.gov.au 

  2. Check the latest rates—not just discounts or flashy promos

  3. Read the energy fact sheets and compare actual annual costs

  4. Set a calendar reminder to review your plan in 12 months

FAQs

Which energy company has the lowest rates in NSW or Victoria?
It changes frequently, but ReAmped, GloBird, and Energy Locals often show up in the top three cheapest—depending on your postcode and usage habits.

Is it safe to switch to a smaller energy retailer?
Yes. They operate under the same licensing and consumer protection rules as the big retailers. Just check for reviews and billing transparency.

Do loyalty discounts still exist?
Not really. Most retailers offer their best deals to new customers. Long-term loyalty often costs you more unless you renegotiate.

When comparing energy plans, the “cheapest” is rarely the one with the biggest discount. It’s the one that matches your real usage, doesn’t sting you with hidden fees, and offers flexibility without friction. Whether you're weighing up niche players or legacy brands, this AGL Energy Review sheds light on how traditional providers are adjusting to a savvier market.

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