Electricity prices in Australia remain a hot topic in 2026, with households paying more than ever to keep the lights on. But with dozens of retailers and hundreds of plans available, there are real savings to be had—if you know what to look for. Here’s your guide to comparing electricity plans and slashing your power bills.
Understanding Your Electricity Bill
Before you compare plans, it’s important to understand how you’re charged:
- Usage charges (c/kWh): The cost per kilowatt-hour of electricity you consume. This makes up the bulk of most bills.
- Daily supply charge (c/day): A fixed daily fee for being connected to the grid, regardless of how much electricity you use.
- Demand charges: Some plans charge based on your peak electricity demand, not just total usage. Common for households with air conditioning or pool pumps.
- Time-of-use rates: Some plans charge different rates depending on when you use electricity (peak, off-peak, shoulder).
- Solar feed-in tariffs: If you have solar panels, you’ll receive a credit for electricity exported to the grid.
Types of Electricity Plans in 2026
Retailers offer several types of plans:
Market offers: Competitive plans with varying rates, discounts, and incentives. These are where you’ll find the best deals.
Standing offers: Default plans with regulated (usually higher) prices. You’ll be on a standing offer if you’ve never switched or your contract has expired.
Fixed-rate plans: Lock in your rates for 1–3 years, protecting you from price increases (but missing out on decreases).
Variable-rate plans: Rates can change with market conditions, for better or worse.
Green energy plans: 100% renewable energy (GreenPower) or carbon-neutral plans for environmentally conscious households.
How to Compare Electricity Plans
Follow these steps to find the best deal:
1. Check Your Current Usage
Look at your latest bill for your average daily usage (in kWh) and your current rates. This gives you a baseline for comparison.
2. Use the Government Comparison Tool
Energy Made Easy (energymadeeasy.gov.au) is the official government comparison site. Enter your postcode and usage to see estimated annual costs for available plans.
3. Compare Key Factors
- Total estimated annual cost: The most important figure—not just the headline rate.
- Discounts: Pay-on-time discounts, direct debit discounts, and sign-up credits can reduce your bill significantly.
- Contract terms: Fixed or variable rates? Locked in or month-to-month?
- Exit fees: Will you pay a fee if you switch before the contract ends?
- Solar feed-in tariffs: If you have solar, compare feed-in rates alongside usage rates.
4. Read the Fine Print
Discounts often have conditions (e.g., pay on time, pay by direct debit). Understand what’s required to get the advertised price.
2026 Market Trends
The electricity market continues to evolve:
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Default Market Offer (DMO): The government’s price cap on standing offers helps protect consumers from excessive prices. Compare your plan against the DMO to see if you’re getting a good deal.
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Solar and battery uptake: With more households installing solar and batteries, retailers are adapting with new tariff structures and virtual power plant schemes.
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Time-of-use pricing: More retailers are offering time-of-use plans that reward shifting usage to off-peak hours.
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Retail competition: New entrants and aggressive marketing mean there are more deals available than ever—but also more complexity.
Real-World Example: Switching Savings
The Mitchell family in suburban Melbourne were paying $2,200 per year on a standing offer. In 2026, they used Energy Made Easy to compare plans and switched to a market offer with a 15% pay-on-time discount. Their new estimated annual cost: $1,700—a saving of $500 per year for 15 minutes of effort.
Tips for Saving on Electricity
- Switch regularly: The best deals are often for new customers. Don’t let your contract roll over onto a standing offer.
- Bundle gas and electricity: Some retailers offer discounts for bundling services.
- Go solar: If you haven’t already, solar panels can dramatically reduce your bills and earn feed-in credits.
- Shift usage: If you’re on time-of-use pricing, run appliances like dishwashers and washing machines during off-peak hours.
- Check your concessions: Eligible households can access government energy rebates and concessions.
The Bottom Line
In 2026, there’s no excuse for overpaying on electricity. Compare plans using Energy Made Easy, understand your usage, and switch to a better deal. A few minutes of comparison shopping can save you hundreds of dollars every year.