Who is the cheapest electric supplier?

 Some electricity providers promise the “lowest rates”, but for anyone who’s ever opened a surprise energy bill, you know — the devil’s in the fine print. Cheap doesn’t always mean cost-effective. And with Australia’s deregulated electricity market, comparing offers isn’t exactly like-for-like. So, who really is the cheapest electric supplier? The truth: it depends on more than just price per kilowatt-hour.

Let’s unpack the real cost of electricity in Australia — and how the right electricity broker might be your smartest ally.

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

Here’s the quick answer: There isn’t a single cheapest supplier that fits everyone.

Electricity costs vary based on:

  • State or territory (NSW, VIC, QLD, SA, TAS, WA, NT)

  • Distributor region within the state

  • Usage profile (residential vs business, daytime-heavy vs evening-heavy)

  • Tariff type (single rate, time-of-use, demand)

Some of the usual low-cost players often cited across comparison sites include:

  • ReAmped Energy

  • GloBird Energy

  • OVO Energy

  • Tango Energy

  • Energy Locals

But this list shifts monthly due to wholesale price changes, promotions, and government regulations. What’s cheap in Sydney might be mid-range in Adelaide.

🧠 Behavioural insight: People tend to overemphasise flat rate prices (a form of anchoring bias). But a 5¢/kWh cheaper rate means little if daily supply charges are through the roof or usage patterns don't align.

Why “cheapest” might cost you more

Ever seen a plan with 28% off usage rates? Sounds appealing — until you realise:

  • It’s 28% off a higher base rate

  • Discounts often exclude supply charges

  • Offers may expire in 12 months

Some retailers also charge exit fees or apply penalty rates if you exceed set usage thresholds.

The ACCC has warned that "comparing electricity plans is more confusing than it should be", partly due to how discounts are marketed (Energy Made Easy is working to fix this).

How do I actually compare electricity suppliers fairly?

Here’s how savvy Aussies break it down:

1. Use your actual bill

Grab your last 1–2 bills. Look at:

  • kWh usage per day

  • Daily supply charge

  • Usage charge (single or time-based)

  • Solar feed-in credits (if applicable)

Now plug that into a comparison site with the same usage pattern — not just estimates.

Recommended tools:

2. Look beyond usage rates

  • Is there a guaranteed discount?

  • Does it include green energy?

  • Are there hidden fees?

  • Can you leave anytime?

3. Call an electricity broker

This is where people get clever. A good electricity broker works like a mortgage broker: they understand the market and can often access bulk or unadvertised rates.

Importantly, brokers usually:

  • Match your actual usage profile to the best-fit plan

  • Spot red flags in "cheap-looking" offers

  • Help you switch, minus the paperwork

It’s how many small businesses shave thousands off their annual energy spend without constantly shopping around.

Are electricity brokers really worth it?

Short answer: Yes, if they’re independent and experienced.

Behavioural nudge: People procrastinate energy switching due to choice overload (aka analysis paralysis). Brokers remove that friction — and studies show that when switching is made easy, people are 4x more likely to act.

Key things to look for:

  • Independence: Do they work across multiple retailers, not just one?

  • No upfront fee: Reputable brokers get paid by the retailer only if you sign up.

  • Experience: Have they handled residential and business accounts? Complex meters? Embedded networks?

Some brokers even specialise in solar feed-in matching, multi-site businesses, or high-usage households (e.g., pools, EV charging, or electric heating).

What’s the cheapest electricity provider for small businesses?

This is where it really pays to stop DIY-ing and get a broker involved.

Business energy rates are often negotiated, not listed publicly. That’s why identical cafés across the road from each other can be paying wildly different rates.

Example: A Melbourne café owner we spoke to saved over $1,800/year after a broker reviewed her tariff — she’d unknowingly been on a residential rate plan for three years.

What about solar feed-in rates — who’s best?

If you’ve got solar panels, the feed-in tariff can drastically affect your net bill.

Some providers offer up to 15c/kWh, while others offer as low as 5c/kWh. But higher feed-in often means higher usage or supply charges.

Tip: If you’re exporting more than 40% of your generation, prioritise feed-in tariffs. If not, focus on lower import rates instead.

What’s the trend with power prices in Australia?

Following a peak in 2022–23, power prices have started to flatten — but only slightly. The Australian Energy Regulator’s recent Default Market Offer shows minor year-on-year increases in most states. Wholesale prices have eased, but network charges remain a key driver.

The real pressure? Rising household energy demand (thanks, air-cons and EVs) and climate-driven volatility in supply.

Expect more retailers to offer usage-smart plans soon (like lower overnight rates for EV charging), rewarding those who shift consumption patterns.

Is it worth switching every year?

In most cases, yes.

Even if you’re on a “good” plan, retailers rarely reward loyalty. In fact, they often reserve the best rates for new customers. It’s called price discrimination, and it’s legal.

🧠 Behavioural tip: Use “switch anniversaries” — set a calendar reminder each year to review your plan. You’ll save more in 10 minutes than hours spent budgeting.

FAQs

Is the cheapest electricity plan always the best?

Not necessarily. The cheapest rate might have high supply charges or lack flexibility. Look at total annual cost — not just the discount.

Do electricity brokers cost money?

Most brokers don’t charge customers directly. They’re paid by retailers upon successful sign-up — just ensure they disclose any affiliations.

Can renters switch electricity plans?

Yes. As long as the account is in your name, you can switch. Just check if your landlord covers electricity in the rent first.

Final thought

Choosing the cheapest electricity supplier in Australia isn’t as simple as scanning a price list — it’s a blend of usage analysis, tariff decoding, and behavioural smart play.

Rather than jumping on the next “XX% off” promo, consider leveraging an electricity broker who understands the market dance. The time saved — and dollars shaved — might just spark a smarter energy habit for life.

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