Key takeaways
- Your bill has two parts — a fixed daily supply charge and a variable usage charge per kWh.
- Compare estimated annual cost for your usage, not headline discount percentages.
- If you have not reviewed your plan in two years, you are likely overpaying.
Australian electricity and gas markets are competitive, but the bills are deliberately confusing. Understanding how supply charges, usage rates, discounts, and benefit periods work is the first step to finding a plan that actually saves you money.
On this page
How the retail energy market works
You pay a daily supply charge to stay connected to the network, plus a usage charge for each kilowatt-hour consumed. The physical network is managed by your local distributor at a regulated price — retailers compete on usage rates, discounts, and solar feed-in tariffs.
Default Market Offer and Victorian Default Offer
The Australian Energy Regulator's Default Market Offer (DMO) and Victoria's VDO set benchmark prices. An engaged household on a good market offer should generally pay less than the standing offer. If you have not switched in two or more years, meaningful savings are often available.
- DMO applies in NSW, SA, and south-east QLD
- VDO applies in Victoria
- Compare your estimated annual cost against the benchmark for your area
Flat vs time-of-use tariffs
Flat tariffs charge one rate all day. Time-of-use (TOU) tariffs price peak hours higher and off-peak hours lower — worthwhile if you can shift dishwasher, washing machine, and EV charging to off-peak windows. Solar households should compare feed-in tariffs separately from import rates.
Reading discounts correctly
A headline '30% pay-on-time' discount often applies to usage only — not the full bill including supply charges. Conditional discounts require you to pay on time or use direct debit every cycle. The most reliable comparison metric is estimated annual cost for your specific kWh usage.
Tip
How to compare energy plans
Gather your annual usage from a recent bill, note whether you have solar export, and compare estimated 12-month cost across retailers with the same tariff type. Check what happens when the benefit period ends.
General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare
Frequently asked questions
Common questions about comparing electricity and gas plans in Australia.
How much can I save by switching energy providers?
Savings vary by usage, location, and how long since you last compared. Households on lapsed or standing offers often find better market deals — compare using your actual annual kWh for the fairest estimate.
Does switching energy providers cut off my power?
No. Switching is a billing change only. Your physical connection and electricity supply continue uninterrupted.
What is the Default Market Offer?
The DMO is a regulated benchmark price in applicable regions. Competitive market offers should generally beat it when your usage is applied.
Should solar households compare feed-in tariffs?
Yes. The feed-in rate for exported solar is separate from what you pay to import. The best plan depends on your balance of self-consumption vs export.