Cheapest electricity providers in NSW (top 10 deals)
Here are the cheapest electricity providers and 10 of the best energy deals for residential customers in NSW, according to Money.com.au’s analysis:
1
GloBird Energy
GloSAVE
2
Dodo
Residential Market
3
Ampol Energy
Powering On
4
Kogan Energy
Free FIRST
5
ENGIE
ENGIE Perks
6
Pacific Blue
Blue First
7
Momentum Energy
Warm Welcome
8
Sumo
sumoSPARK
9
Powershop
Switch Saver
10
AGL
Value Saver
This list is based on Money.com.au’s analysis of Sydney electricity plans in the comparison table above. Information is accurate as of 22 October 2024.
Power companies often roll out new deals to draw in customers, so if you haven’t switched plans or providers in the past 12 months, chances are you could be paying too much for power. When you sign up for an energy plan, it’s a good idea to mark your calendar to check back in a year and ensure you’re still getting a fair price.
Average electricity bill NSW
The average electricity bill in NSW is around $2,173 a year or $543.25 per quarter. This figure is based on the Default Market Offer (DMO) set by the Australian Energy Regulator (AER) for 2024-25 for residential households on a single rate tariff without a controlled load.
Keep in mind that DMO prices vary depending on where you live in NSW. The AER also reported that DMO prices have decreased slightly across all three NSW distribution networks compared to last year.
While the Default Market Offer helps ensure retailers charge a fair price for electricity, there are often cheaper deals available. Most power companies promote a variety of ‘market offers’ that tend to be more competitive in terms of price and benefits.
For example, the default price for a residential household on a single rate tariff in Sydney's Ausgrid network is $1,810 a year. In contrast, the cheapest market offer on the same network is currently $1,375 a year, which means you could save over $400 annually.
Energy bills can be a major expense for households, especially as the cost of living increases and budgets get tighter. We recently asked Australians to rank the bills they dread the most, and 29% of respondents in NSW said energy bills are at the top of their list.
Cheapest electricity rates in NSW
Some of the cheapest electricity rates in NSW currently belong to GloBird Energy, Dodo, Ampol Energy, and Sumo. Expect a usage rate of around 30 cents per kilowatt-hour (c/kWh) and 60-75 cents per day for the supply charge, according to Energy Made Easy.
Keep in mind that the above electricity rates apply to residential customers on a single rate tariff in Sydney on the Ausgrid distribution network, as of 22 October 2024.
While finding a deal with low electricity rates is great, it’s important to compare plans based on other factors too. Discounts, sign-up credits and rewards programs (to name only a few) can add extra value along with cheap energy rates. The good news is that you can compare apples with apples using the Reference Price, which helps you see how competitive a plan’s price really is.
How to find the best energy plans in NSW
Low usage rates
Your electricity usage rates will likely have the biggest impact on your bills since this is the cost you pay for the electricity you use, measured in cents per kilowatt-hour (c/kWh). If your household uses a lot of energy, having a lower usage rate can significantly reduce your expenses. For example, even a small difference in the rate can lead to substantial savings over time, especially for families with high energy needs or those using appliances like air conditioning and heating frequently. In NSW, a low usage rate typically ranges from 30 to 35c/kWh.
Reasonable supply charges
Electricity supply charges are another major contributor to skyrocketing energy costs, particularly for households that don’t use much power. These charges are a fixed daily fee you pay to stay connected to the grid, regardless of how much electricity you consume. If you’re a low-energy user, supply charges can represent a larger portion of your total bill, meaning you could end up paying more relative to your usage. A reasonable supply charge in NSW is generally between 60 and 90 cents per day.
Discounts and incentives
Discounts and other incentives such as sign-up credits or ongoing bill credits can add another layer of value. Some retailers offer ‘conditional’ discounts, which require you to meet certain criteria — like paying bills on time or setting up direct debit payments. Other discounts may be ‘guaranteed’, meaning the retailer automatically applies it to your bill, either on the usage portion or the total (including both usage and supply charges). A discount or bill credit in this instance may help offset higher usage and supply charges.
The benefit period
The benefit period refers to the length of your energy plan’s contract and how long you’ll enjoy any discounts, incentives, and the usage/supply rates you signed up for. Typically, benefit periods last 12 or 24 months, but some retailers offer ongoing contracts, allowing you to keep those benefits for as long as you stay with them. According to Energy Made Easy, retailers are required to notify you at least 20 business days before the benefit period is set to expire or change.
Hidden fees
Other fees that can affect your overall costs include credit card payment processing fees, paper bill fees, late payment fees, and connection fees if you live in a newly-built property. Additionally, you might encounter disconnection or reconnection fees, which are charged by the energy distributor and passed on to your retailer.
Customer service
One often overlooked factor is the quality of customer service and support from your energy provider. Be sure to check online ratings, social media feedback, and any awards they may have won, as well as whether they offer user-friendly apps that can help you manage your bills and track your power usage.
It’s important to remember that everyone living in NSW will use energy differently, and have their own personal circumstances and energy requirements. No two households are the same when it comes to energy use and there are multiple factors that influence the overall price you pay.
Understanding the NSW energy market
NSW energy distributors explained
An energy distributor is the company responsible for maintaining energy infrastructure, such as power lines and gas pipes. Distributors also ensure that connected properties receive a stable supply of energy, whether it be via the electricity grid or gas mains.
In NSW, there are three electricity distributors:
- Ausgrid: Provides power to 1.8 million customers in Sydney, the Central Coast and the Hunter Valley.
- Endeavour: Distributes power to 2.7 million people across Sydney’s greater west, the Blue Mountains, Southern Highlands, the Illawarra and the South coast.
- Essential: Services around 800,000 customers, delivering power to 95% of NSW, including Southern Queensland and Northern Victoria.
Although distributors have nothing to do with energy bills, the network you are supplied energy through dictates the Reference Price within that region. See below for current Reference Price amounts in NSW according to the distribution network.
| Distributor and average household annual electricity usage | Average annual cost (Reference Price) for household on a single rate tariff |
|---|---|
Ausgrid (3,900kWh) | $1,810 |
Endeavour (4,900kWh) | $2,223 |
Essential (4,600kWh) | $2,513 |
Can you choose your own electricity provider in NSW?
Yes, the energy market in NSW is deregulated, meaning you’re free to choose your own electricity provider. You can quickly compare a range of NSW energy providers by using a range of online comparison tools, including Energy Made Easy. These tools allow you to enter your postcode to see plans available from various companies in your area.
Residents in NSW and its major areas can choose their electricity suppliers:
- Sydney
- Newcastle
- Wollongong
- Penrith
- Gosford
- Albury
- Maitland
- Shellharbour
- Wagga Wagga
- Port Macquarie
NSW electricity providers you can choose from
- 1st Energy
- AGL
- Alinta Energy
- Amber Electric
- CovaU Energy
- Diamond Energy
- Dodo
- Electricity in a Box
- EnergyAustralia
- Energy Locals
- ENGIE (formerly Simply Energy)
- GloBird Energy
- Kogan Energy
- Momentum Energy
- Nectr
- Origin
- OVO Energy
- Pacific Blue
- Powershop
- Red Energy
- Sumo
- Tango Energy
Some energy retailers above may have switched off their market offer plans, meaning they are no longer accepting new customers at this point in time. This is likely due to an unstable wholesale market where bulk electricity prices are too expensive for retailers to purchase (and service customers while still turning a profit).
NSW energy rebates: What’s on offer?
1
National Energy Bill Relief
All households will receive bill payments of up to $300 in the 2024-25 financial year if customers meet the eligibility criteria outlined by Service NSW. Energy retailers will automatically apply quarterly instalments of $75 to electricity bills from 31 July 2024 to 1 April 2025.
2
NSW Low Income Household Rebate
Retail customers will receive a payment of up to $350 per household each financial year for eligible concession cardholders, such as pensioners, veterans and low-income families.
3
NSW Family Energy Rebate
Up to $250 for eligible households with dependent children who have received the Family Tax Benefit payment from the Commonwealth Department of Human Services.
4
NSW Gas Rebate
Provides a relief payment of $110 for eligible concession cardholders to help pay for natural gas or LPG bills each financial year.
5
NSW Life Support Energy Rebate
Depending on the equipment type, up to $1,638 for eligible customers who rely on life support equipment in their home.
6
Seniors Energy Rebate
To help with the cost of living, Commonwealth Seniors Health Card holders can apply for a rebate of $250 per financial year.
7
NSW Medical Energy Rebate
Eligible concession cardholders can receive a rebate of $350 per financial year to assist with electricity bills for households with people who cannot regulate their body temperature.
