The average monthly electricity bill in Australia typically ranges from around $150 to $180, with figures varying by state and household size, but figures suggest around $165/month for a national average, with some states like SA higher and VIC lower, and larger families generally paying more for energy.
For a two-person household, electricity costs usually fall between Ofgem's “low” and “medium” usage categories. Under the July–Sept 2025 price cap, the annual bills are around £650 for low use (1,800 kWh per year) and £882 for medium use (2,700 kWh per year). That's roughly £55–£75 a month.
South Australia has the highest electricity prices in Australia. This is mainly because the state uses a lot of renewable energy, which is expensive to produce and store. ESCOSA (the Essential Services Commission of South Australia) is in charge of the electricity market in the state.
There are several reasons why your bill may be higher than expected – for instance, if you've recently been using more air-conditioning or heating, if you've moved to a larger house or if you've been spending more time at home. Check out our higher than expected bill checklist for more information.
Average electricity bill in Victoria
The 2025-26 Victorian Default Offer (VDO) pegs a typical household's fallback electricity bill at about $1,675 a year (4,000 kWh) — roughly $419 each quarter, or $140 a month.
The short answer is no. We're around the middle of the pack, and a little further down the list after accounting for our relatively high incomes. The average electricity price for Australian households was 39 cents per kilowatt-hour (kWh) between 2023 and 2025, according to the Australian Energy Council.
Meanwhile, thanks to their great crude oil and natural gas production output, countries like Iran, Qatar, and Russia enjoy some of the cheapest electricity prices in the world. Here, the average household pays less than 0.1 U.S. dollars per kilowatt-hour.
Switch off appliances when not in use.
Appliances like chargers, TVs, gaming consoles and microwaves use power even when they're not going. This could add hundreds of dollars to your power bill every year. Always switch them off or unplug them at the wall.
Depending on the model and efficiency, a one-ton AC uses about 1.2 kWh/hour, while a 1.5-ton AC uses around 1.5 kWh/hour. On average, running an AC for 8 hours a day can add anywhere from ₹1,800 to ₹3,500 per month to your electricity bill, depending on the AC type and your electricity rate.
Hawaii: The Nation's Highest Electricity Costs
Hawaii leads the country by a wide margin with residential rates at 40.96¢ and commercial at 35.54¢ per kWh. Because Hawaii is geographically isolated, it depends heavily on imported petroleum for power generation.
South Australians, on average, pay the highest electricity prices per kWh, in addition to often missing out on the big discounts and bonus perks frequently available in other states. In comparison, households in VIC and TAS generally pay the lowest prices per kWh.
Electricity Rates By State (Updated Daily)
Average Energy Consumption
According to data from the Australian Energy Regulator in 2023, the average energy used per day by a household with three people is about 18.71 kilowatt-hours (kWh). A household with four people typically uses around 21.355 kWh/day; if there are five or more people, it's about 25.43 kWh/day.
Here are the most significant home electricity users:
It's estimated that devices left plugged in and unused account for 10% of the average household's utility bill. By properly unplugging your appliances, you can save as much as 10% on your utility bill.
Incandescent lights should be turned off whenever they are not needed, because they are the least efficient type of lighting. 90% of the energy they use is given off as heat, and only about 10% results in light. Turning lights off will also keep a room cooler, an extra benefit in the summer.
The 3-minute rule is a simple but important guideline: wait at least three minutes after turning your air conditioner off before turning it back on. That short pause gives the refrigerant pressure in the system time to equalize.
If you're wondering which appliances use the most electricity at home, heating and cooling devices are usually top of the list. Electrical appliances like showers, ovens, tumble dryers and heaters can all consume massive amounts of energy - but they're not the only culprits.
As I mentioned before, an AC unit can run for 24 hours without a break, and if necessary, you can use it for 7 days as well. But you need to check the thermostat of the AC for that.
Did you know that when your appliances or electronic devices are plugged in, they're draining energy – even if they're not in use? Phantom power, also called standby power, refers to the energy that's wasted around your home when devices are plugged in and using power, but you're not actively using them.
It's a myth than running your air conditioner 24/7 will give lower running costs. It is far cheaper to turn the air conditioner off while you are out of the house or overnight while sleeping, and on again when you return or after the house warms up during the day.
For most people, using a dishwasher is more energy-efficient than hand washing dishes because it uses less hot water. Is it cheaper to hand wash or use a dishwasher? In most households, the dishwasher uses less hot water than hand washing and is, therefore, a cheaper alternative to washing dishes by hand.
Running costs and efficiency
Gas remains cheaper per kWh than electricity. A modern condensing gas boiler operates at 90–95 % efficiency, meaning most of the energy content of the gas is converted into heat.
Australia is in the bottom 1/3 for electricity prices compared to other OECD nations.
Here are some home energy savings tips to lower your electric bill: