How to cut your electricity bill in Australia: plan first, habits second

Default electricity prices fell from 1 July 2026 in most of the east coast, but a lower safety-net price does not mean your own plan got cheaper. In Australia the big savings come from two places: the plan you are on, and the time of day you use power. Fix those first. Insulating the water heater and switching off the second fridge come after.

Start with the price you pay per kWh

Check your plan against the reference price. Every plan in NSW, south-east Queensland and South Australia is advertised as a percentage above or below the AER’s Default Market Offer; in Victoria the benchmark is the Victorian Default Offer. The ACCC suggests a simple question for your retailer: “Do you have a plan which is below the comparison price set by the AER?” If you are above it, you are paying for loyalty.

Compare with your real usage. Energy Made Easy and Victorian Energy Compare both let you upload a bill or smart meter data, and a comparison built on your actual kWh and time of use beats one built on a household-size guess. You can also run a comparison through the services on our compare page, where we say which links pay us.

Read the best offer message if you are in Victoria. Retailers there must show on the bill, at least every three months for electricity and every four months for gas, whether they have a cheaper plan for you and how much you would save. If the number is more than pocket change, ring and ask to move.

Watch conditional discounts. A plan that looks cheap only because of a pay-on-time discount stops being cheap the first time you pay late. Work out what it costs in a month when you miss the discount before you sign.

Move usage into the middle of the day

Network tariffs now reward midday use. In Victoria the ESC changed the default time-of-use structure from 1 July 2026 to three periods: a cheaper solar soak from 11 am to 4 pm, peak from 4 pm to 9 pm and off-peak from 9 pm to 11 am. Running the dishwasher, washing machine and pool pump at lunchtime instead of at 6 pm is the cheapest habit change available.

In NSW, south-east Queensland and South Australia, retailers with more than 1,000 customers must now offer the Solar Sharer Offer: three hours of free electricity every day, up to 24 kWh. The window is 11 am to 2 pm in NSW and south-east Queensland and 12 pm to 3 pm in South Australia, and it does not move with daylight saving. You need a smart meter, you must not be in an embedded network, and you must opt in. It pays if someone is home at midday or you can put appliances on timers. If your other rates are higher and you cannot shift usage, it can cost you more, so compare the whole plan, not the free hours.

Hot water: a quarter of the energy

Energy Made Easy puts hot water at around 25% of typical household energy use, which makes it the biggest single target in many homes.

An electric storage system on a controlled load tariff runs on its own circuit at restricted, usually off-peak times and gets a cheaper rate. If you have one, check it is actually connected that way. With rooftop solar, ask your electrician about heating the water at midday instead. Shorter showers and a water-efficient shower head cut the energy and the water bill at the same time. And if the old system is near the end of its life, a heat-pump hot water unit is worth pricing before it fails and you have to take whatever the plumber has on the ute.

Heating and cooling

Reverse-cycle air conditioning is the usual heater and cooler in Australian homes. Close doors to rooms you are not using, pull the blinds on the western side before a hot afternoon, and keep the thermostat away from extremes. If you still heat with gas, our heat pump calculator compares the running cost of gas heating and hot water with reverse-cycle air conditioning and a heat-pump water heater.

Gas networks are also preparing for fewer customers. On 26 August 2026 the AEMC proposed reforms that could mean “modest cost increases” for people who keep using gas in the near term. If your gas heater or hot water system is ageing, get quotes for electric replacements before it breaks, and ask your gas retailer about abolishment fees before you disconnect.

The small leaks

Standby power can be up to 10% of household electricity use, according to Energy Made Easy. The usual suspects are TVs, set-top boxes, game consoles and chargers left in the wall. A second fridge in the garage, an old pool pump or a bar heater can cost more than you think; our appliance calculator turns wattage and hours into dollars.

Batteries: only once the plan is right

Batteries became part of the Small-scale Renewable Energy Scheme on 1 July 2025, and the Cheaper Home Batteries Program aims for about a 30% discount on the installed cost. Since 1 May 2026 the discount is tiered by size, and it steps down every six months until 2030. A battery lets you use midday solar in the evening peak, but it only makes sense once you know which tariff you will be on. See our solar and batteries guide.

In Western Australia or the Northern Territory

You cannot choose your retailer, so the plan section above does not apply, but everything from midday usage down does. Ask your supplier which tariffs it offers for your meter, because a time-of-use option can still pay.

If the bill is already hard to pay

Call your retailer before the due date. Energy Made Easy lists what it can offer: more time, fee waivers, payment plans and a check that your plan suits you. From 1 July 2026 a retailer cannot disconnect you over a debt below $500 if you are on a repayment arrangement (the threshold was $300 before). Energy Made Easy’s help line is 1300 585 165.

Be wary of anyone knocking on your door or ringing with “free” upgrades or a plan that will “definitely” save you money. Ask for the offer in writing and compare it yourself. If you did sign at the door, you have 10 business days to cancel (see our switching guide).

Most retailers change prices around 1 July. Put that date in your diary, or let our free contract alert remind you, and check your plan against the new reference price when it comes.