Electricity bills in Sydney seem to be increasing constantly. The regulator has set new reference prices, and most people will see higher costs going into 2026. If you haven’t checked your plan in over a year, there’s a good chance you’re overpaying.
At PSC Energy, we know you might feel like you’re stuck with your current provider or that switching won’t save you much. But the difference between the cheapest and most expensive electricity plans in Sydney right now is nearly 35%. That’s hundreds of dollars a year back in your pocket.
In this article, you’ll learn about the following:
- Why Comparing Electricity Providers Is So Hard
- What Makes Up Your Electricity Bill?
- The 10 Cheapest Electricity Providers in Sydney (As of November 2025)
- Should You Switch Electricity Providers?
- FAQ: Comparing Energy Retailers
By the end of this guide, you’ll see which energy companies are offering the lowest prices today, how electricity bills actually work, and how to know if switching is worth it.
Why Comparing Electricity Providers Is So Hard
Electricity plans can look almost identical at first. But once you look closely, you’ll notice
- Different usage rates.
- Supply charges.
- Controlled load options.
- Solar benefits.
It’s easy to get confused.
Some plans offer a low daily fee but high usage costs. Others flip that around. Many throw in discounts that quietly expire after 12 months. If you don’t know what to look for, it’s hard to tell which plan is better.
The key to comparing plans properly is to break your bill down into simple parts. Once you understand those, the comparison gets much easier.
If you’re interested in learning a bit more about the differences between energy retailers and distributors, you might want to check out the following article titled, Energy Distributors vs. Energy Retailers: What’s the Difference?
What Makes Up Your Electricity Bill?
Three main charges show up on every electricity bill:
1. Usage charge (cents per kilowatt-hour or c/kWh):
This is the cost of the actual electricity you use. Most households pay different usage rates depending on the time of day.
- Peak hours (usually evenings) are the most expensive.
- Off-peak hours (typically late at night) are cheaper.
- Shoulder periods (in between) fall somewhere in the middle.
If you can run appliances like your dishwasher or dryer outside of peak times, you’ll pay less over time.
2. Supply charge (cents per day):
This is a flat daily fee just to stay connected to the power grid. Even if you use no electricity, you still pay this fee every day.
Some plans trade off one cost for the other. If you live in a big household or use a lot of power, a higher daily charge with lower usage rates might save you money. But if you live alone or don’t use much power, the opposite might be better.
3. Controlled load (c/kWh):
In Sydney, you might see the term controlled load on a plan. This is a separate meter for high-usage appliances, such as electric hot water systems.
Controlled load rates are cheaper but only apply to specific devices and only during set hours. Not every home is set up for it, and not every provider offers it.
It’s usually in the middle of the night for heating water if you have an electric water heater.
If you’re interested in learning a bit more about power and energy, you might want to check out the following article titled, Power vs. Energy: kW vs. kWh.
The 10 Cheapest Electricity Providers in Sydney (As of December 2025)
We used current pricing from the Australian Energy Regulator’s Energy Made Easy tool. These estimates are for:
- A typical 2–3 person home in Sydney.
- With no solar.
- No pool or other heavy-duty appliances.
Your actual cost might be higher or lower based on your usage, but this gives you a solid comparison point.
Here are the cheapest electricity providers right now:
| Nectr | $2,280/year | 97.0c/day supply charge | 23 – 55c/kWh usage rate |
| Sumo | $2,280/year | 123c/day supply charge | 28 – 35c/kWh usage rate |
| 1st Energy | $2,290/year | 133c/day supply charge | 37 – 51c/kWh |
| Momentum Energy | $2,290/year | 169c/day supply charge | 21 – 32c/kWh usage rate |
| Kogan Energy | $2,300/year | 129c/day supply charge | 29 – 33c/kWh usage rate |
| Powershop | $2,310/year | 129c/day supply charge | 29 – 33c/kWh usage rate |
| Red Energy | $2,400/year | 92c/day supply charge | 31 – 54c/kWh usage rate |
| Flow Power | $2,410/year | 121c/day supply charge | 34c/kWh usage rate |
| Origin Energy | $2,420/year | 203c/day supply charge | 21 – 44c/kWh usage rate |
| AGL | $2,450/year | 94c/day supply charge | 26 – 39c/kWh usage rate |
All prices above include GST and are current as of 3 December 2025. These figures are estimates for a typical Sydney home and may change.
Always check the latest rates before switching.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
Should You Switch Electricity Providers?
If your current bill is more than $2,200 a year and your household setup is similar to the one above, you can likely save money by switching.
Many people stay on default offers without realising it. These are usually more expensive and don’t include competitive discounts.
You don’t need to wait for your contract to end. In most cases, you can switch plans without any exit fees. It usually takes just a few minutes online.
Before you switch, make sure to:
- Check your current supply and usage charges.
- Compare those against current market offers.
- Look for any discounts or conditions.
- Read the fine print for contract terms.
You don’t need to stress about choosing the perfect plan. Even moving from an overpriced plan to a middle-of-the-road one can save you hundreds per year.
Tips To Keep Your Power Bill Low
Once you switch, don’t forget to:
- Watch for expiring discounts or rising usage rates.
- Track your energy usage through your retailer’s app.
- Consider solar if you’re staying in your home long-term.
Electricity is a significant household cost, but it’s also one you can control with just a bit of effort.
If you’re interested in learning a bit more about how to save with solar, you might want to check out the following article titled, Self-Consumption: How to Increase Solar Energy Use.
What To Do Next
Grab your latest electricity bill and compare it with the prices above. If your bill is higher than $2,100 a year, it’s time to act. Switching providers only takes a few minutes and can save you hundreds.
Use a reliable comparison tool, enter your details, and find the plan that fits your home.
At PSC Energy, we help Sydney residents stay on top of rising energy costs. A cheaper plan is out there; you just need to grab it.
If you’re interested in learning a bit more about weighing the cost of solar against the cost of the grid, you might want to check out the following article titled, Cost of Solar Panels vs. Cost of Energy from the Grid.
FAQ: Comparing Energy Retailers
How much can I save by switching electricity providers in Sydney?
Right now, the gap between the cheapest and most expensive plans in Sydney is close to 35%. That difference can add up to hundreds of dollars each year.
If your bill is more than about $2,200 a year and your home matches the “typical” setup, you probably pay more than you need to. Even if you do not land on the very cheapest plan, moving from a high-priced plan to a middle-priced one can still save you a lot.
You do not need a perfect plan to save money. You just need a better one than the plan you are on today.
Why do electricity plans in Sydney look similar but cost so differently?
Most plans advertise similar things. They talk about low rates, discounts, or “great value”, and they show almost the same headlines. The real differences hide in the details.
Plans vary in a few key areas:
- Usage rates in cents per kilowatt hour.
- Daily supply charge in cents per day.
- How discounts work and when they expire.
- Whether there is a controlled load.
- Whether there are solar feed-in tariffs and, if so, how high they are.
One plan might have a low daily supply charge and a high usage rate. Another plan might flip that with a higher daily fee and lower usage. If you do not break the bill into these parts, the plans all blur together, and the costs do not make sense.
What is the difference between usage charges and supply charges?
Your electricity bill has two main charges.
Usage charge (cents per kWh):
- This is what you pay for the power you actually use.
- It is measured in cents per kilowatt hour.
- Rates often change by time of day.
Supply charge (cents per day):
- This is a fixed daily fee to stay connected to the grid.
- You pay it even if you do not use any electricity that day.
Some plans lower the supply charge but raise the usage rate. Other plans raise the supply charge but lower the usage rate. Heavy users often do better with higher supply and lower usage. Low users often do better with lower supply and higher usage.
Is it better to choose a low daily supply charge or a low usage rate?
The better choice depends on how you use power.
A low supply charge suits you if:
- You live alone or with one other person.
- You are out most of the day.
- Your overall usage is low.
A low usage rate suits you if:
- You have a larger family.
- You use a lot of power in the evenings.
- You often run heaters, coolers, or dryers.
You can test this with your own bill. Look at your yearly or quarterly kWh usage and the total daily supply charges. Then compare your use to example plans.
If most of your costs come from usage, focus on lower usage rates. If a big chunk comes from daily charges, focus on lower supply rates.
What is a controlled load on my electricity plan, and do I need one?
A controlled load is a separate meter for big appliances that run at set times. In Sydney, this is often an electric hot water system.
Key points about controlled loads:
- You pay a cheaper rate for the controlled load, usually off-peak.
- It only applies to specific devices, not your whole home.
- Not every house has controlled load wiring.
- Not every provider offers controlled load on every plan.
You might benefit from a controlled load if you have electric hot water or another large appliance that can run on a timer. If you have gas hot water, or you already have solar hot water, a controlled load may not help.
How do I know if I should switch electricity providers?
You should seriously consider switching if:
- Your yearly bill is higher than $2,100-$2,200 for a typical 2–3 person home without solar.
- You have not checked your plan in more than 12 months.
- You are on a “standing offer” or “default offer” from your retailer.
- A discount you signed up for has expired.
You can check this quickly. Grab your latest bill. Look at:
- Total yearly cost if your bill shows it.
- Supply charge in cents per day.
- Usage rates in cents per kWh for each time period.
Then compare those numbers with current offers from comparison tools or retailer sites. If other plans are clearly lower for similar usage, it is time to move.
Can I switch electricity providers if I am still in a contract?
In most cases, yes.
Many modern plans have no exit fees at all, especially in competitive markets like Sydney. Even if your plan has a contract term, the exit fee is often small compared to the money you might save over a year.
You should still check the “fees” section on your bill or on your retailer’s website. Look for:
- Exit or termination fees.
- Move-out fees.
- Paper bill fees.
- Credit card fees.
If exit fees exist but are small, they may still be worth paying if a new plan cuts your yearly bill by hundreds of dollars.
What should I compare when I look at electricity plans online?
To compare plans properly, look past the sales copy and focus on numbers. The main things to compare are:
- Usage rates in cents per kWh for peak, shoulder, and off-peak.
- Daily supply charge in cents per day.
- Any controlled load rates, if you use them.
- Any discounts and how long they last.
- Whether the plan has fixed or variable rates.
- Any fees for payment methods or late payments.
You can also compare the “estimated yearly cost” for a typical home if the site shows it. Just remember that your own cost may be higher or lower depending on your usage, solar, and controlled loads.
How do time-of-use rates affect my electricity bill?
Time-of-use plans charge different rates at different times of day.
On a typical time of use plan:
- Peak rates apply in the late afternoon and evening when most people cook, heat, or cool their homes.
- Off-peak rates apply late at night and sometimes early morning.
- Shoulder rates apply in the hours between peak and off-peak.
You can lower your bill on a time-of-use plan by shifting flexible usage. For example, you can run dishwashers, washing machines, or dryers later at night or early in the morning. If you cannot shift much usage out of peak times, you may not gain much from this plan style.
Do the cheapest electricity providers in Sydney work well with solar?
The list of the cheapest providers in the guide is based on a typical home without solar, without a pool, and without a controlled load if you have solar, the picture changes.
You should check:
- Feed-in tariff rates per kWh for solar exports.
- Any limits on how much export earns the full rate.
- Whether higher feed-in tariffs come with higher usage charges.
Sometimes the plan with the highest feed-in tariff is not the cheapest overall. If you export a lot, a solid feed-in rate helps. If you self-consume most of your solar and export very little, you should focus more on low usage and supply charges rather than a flashy feed-in tariff number.
What simple steps can I take to keep my power bill low after I switch?
Switching once helps, but you also control your ongoing usage. You can keep your bill low by:
- Watching for email or letter notices about changing rates.
- Use your retailer’s app to track your usage over time.
- Moving big appliances to off-peak times where possible.
- Consider solar panels if you plan to stay in your home long term.
Electricity is a significant household cost, but you are not stuck with it. A small amount of attention once or twice a year can protect you from creeping price rises.
What is the Australian Energy Regulator’s reference price, and why does it matter?
The regulator sets a reference price each year. This is a benchmark for typical usage in each region.
Retailers must show how their plan compares to that reference price. This helps you see at a glance whether a plan is more or less expensive than the default offer.
If a plan says, “10 percent less than the reference price,” and another says, “5 percent less,” both might be cheaper than the default. Still, the first plan should be more affordable than the second for the same usage pattern. That gives you another quick way to sort plans before you dig into the fine print.
How do I start comparing my current bill to the cheapest plans?
You can follow a simple checklist.
- Grab your latest electricity bill.
- Find your yearly cost or add up your last four quarterly bills.
- Note your total kWh usage for that same period.
- Note your supply charge in cents per day.
- Note your peak, shoulder, and off-peak usage rates.
- Compare your yearly total with the example costs in the list of the cheapest providers.
- Use a comparison site or retailer websites to check live offers that match your usage pattern.
If your yearly cost is well above the cheapest examples for similar usage, you likely have room to save. A plan closer to the lower end can reduce your bill without changing how you live, and more careful usage habits can reduce it further.
