What Is the Average Electricity Bill in Australia

what is the average electricity bill in Australia

Do you want to know how your electricity expenses compare to the rest of Australia, and what is the average electricity bill in Australia? If so, read on, as we give you an overview of the average electricity bill in Australia by state, age group, and household size, as well as some tips on how you can reduce your electricity bill.

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Average electricity bill in Australia

Thanks to renewable energy, Australia has one of the lowest electricity prices in the world. The typical Australian household electricity bill is approximately $1,645 per year. Let’s see what is the average cost of electricity in Australia by state according to the Australian Energy Market Commission (AEMC):

StateAverage electricity bill
Sydney, New South Wales            $1,253/year
Canberra, Australia Capital Territory            $2,004/year
Melbourne, Victoria             $1,290/year
Brisbane, South-East Queensland            $1,226/year
Adelaide, South Australia            $1,742/year
Perth, Western Australia $1,992/year
Hobart, Tasmania            $2,004/year

Average electricity bill by household size

The average electricity bill will differ based on the size of your household. This largely depends on the size of your house and how many people you live with. As expected, the more occupants in your home, the higher the electricity usage and vice versa. 

According to Canstar Blue, here is how much is spent on electricity in Australia each year based on the size of a household:

  • The average electricity bill for a one-person household is $968.
  • The average electricity bill for a two-person household is $1,336.
  • The average electricity bill for a three-person household is $1,680.
  • The average electricity bill for a four-person household is $1,944.
  • The average electricity bill for a five-person household is $2,228.

Average electricity bill by age groups

Reports show that the older people in Australia are, the less they spend on electricity. Here is how much Australians pay for electricity based on their age:

Age GroupAverage Annual Electricity Bill
18-29$1,744
30-39$1,668
40-49$1,504
50-59$1,380
60-69$1,228
70 and over$1,168

The older you get, the less you pay for electricity. Some electricity providers provide additional savings to seniors cardholders, and pensioners may be eligible for government rebates on their power bills. However, consider the following factors that might influence these expenses:

  • Older energy customers in Australia are more likely to have solar systems installed in their homes. 
  • Younger people may have larger households with more people. That means they need more electricity to run things. 
  • Additionally, younger Australians are more likely to live in rental properties where they might not be as concerned about getting a good power deal.

Average household energy consumption

In an average Australian home, around 40% of energy is consumed on heating and cooling (this includes electric power, but also other sources of energy). Let’s see a breakdown of what Australian households mostly consume energy on:

  • Heating and cooling: 40%
  • Water heating: 23%
  • Other appliances (washing machine, television): 14%
  • Fridges and freezers: 8%
  • Lighting: 7%
  • Cooking: 5%
  • Standby power: 3%

How to reduce energy consumption and electricity bills?

There are ways to spend less on electricity and reduce energy consumption. Here are some simple tips: 

  • Turn off appliances when they’re not in use.
  • Set your thermostat to a cooler temperature in the winter and a warmer temperature in the summer.
  • Use energy-efficient lightbulbs
  • If you want to save on your water heating costs, use less hot water or install a solar hot water system.

Bottom Line

While the average electricity bill in Australia is high, there are ways to minimise your costs and save money on your energy consumption. If you’ve been wondering what is the average electricity bill in Australia, how you can cut your expenses on electric power and reduce energy consumption, we hope you found our article useful.

Make sure you follow some of our tips to significantly reduce energy consumption in your household and pay less for electricity.

FAQs:

1. How much should my electricity bill be in Australia?

The answer to this question depends on several factors, including the size of your household, the state you live in, and your age group.

2. What costs the most on your electric bill?

If you use electricity for heating and cooling, this is what most of your electric power is spent on and what costs you the most. The average Australian household consumes almost 40% of energy on heating and cooling (although this includes not just electric power, but other sources of energy as well).

3. What is the average electricity bill in Australia?

The Australian household electricity bill is approximately $1,645 per year.

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