Average electricity bill in Sydney for homes and businesses | 2025 guide

What is the average electricity bill in Sydney in 2025?

Electricity costs in Sydney keep shifting, which makes it hard to know whether you are paying a fair price. While every household and business uses power differently, recent industry data shows that:

• Typical residential customers in Sydney pay around $1,200 to $1,600 per year for electricity, depending on usage and plan structure
• Small businesses in New South Wales, including Sydney, often spend around $1,200 per month on electricity

These figures are averages only. The real value for you is understanding why your bill looks the way it does and what you can actually change.

Instead of trying to chase a single “average number”, it is more useful to look at the main drivers that push Sydney power bills up or down.

Key factors that affect your electricity bill in Sydney

Several components work together to create your final bill. Some you can control, others you cannot.

1. Usage and consumption patterns

Your usage, measured in kilowatt hours (kWh), is the biggest variable on your bill.

For homes this is influenced by:

• Number of people in the household
• Size and age of the home or apartment
• Heating and cooling habits, especially in summer
• Appliance efficiency, for example fridges, hot water systems, pool pumps
• Whether you use gas for cooking or heating

For businesses in Sydney, key usage drivers include:

• Operating hours and days per week
• Energy intensity of equipment or machinery
• Heating, ventilation, and air conditioning loads
• Refrigeration, data centres, or specialist equipment

Small changes in usage behaviour can have a big impact over a full quarter or year.

2. Tariff type and time of use

Your tariff is the way your retailer charges for every unit of electricity. Common tariff types in Sydney include:

• Single rate, where you pay the same price per kWh at all times
• Time of use, where peak, shoulder, and off peak periods have different prices
• Demand tariffs for some business customers, where a portion of your bill is based on your highest half hour of usage in a billing period

If you are on a time of use or demand tariff, shifting usage away from busy times can reduce your bill, even if your total kWh stays similar.

3. Daily supply charge

On most Sydney electricity bills there is a fixed daily supply charge. This is a set fee per day that you pay regardless of how much power you use. It covers network and retail costs for keeping you connected.

Two plans with similar usage rates can have very different total costs if one has a much higher daily supply charge. When you compare offers, it is important to look at both.

4. Network area and distribution charges

In New South Wales, the physical poles and wires are owned and operated by distribution businesses such as Ausgrid, Endeavour Energy, and Essential Energy. Which one you are connected to depends on your location.

These companies set network tariffs that are then passed through on your bill. You cannot choose your distributor, but you can choose your retailer and the way your tariff is structured.

Sydney customers typically sit in the Ausgrid or Endeavour Energy areas, and the structure of their network tariffs influences whether a single rate, time of use, or demand based plan suits you best.

5. Retail margins, discounts, and contract terms

Retailers add their own margins and commercial structures on top of the underlying network and wholesale costs. This is where plans can vary a lot.

Important items to check include:

• Usage and supply rates
• Length of the benefit period for any discounts
• Whether discounts are conditional on paying on time or by direct debit
• Exit fees or other contract charges
• Fixed versus variable rates over the contract term

Two customers with identical usage can pay very different amounts depending on how well their plan matches their usage profile.

How Sydney electricity bills compare for homes and businesses

While households and businesses both feel the impact of rising prices, their bills behave differently.

Residential electricity bills in Sydney

For a typical household, the annual electricity bill is heavily influenced by lifestyle and building characteristics.

Households may see higher than “average” bills if they:

• Work from home more days per week
• Use electric heating or cooling for long periods in summer or winter
• Have older or inefficient appliances
• Run pool pumps or spas every day
• Do not have access to gas and rely entirely on electricity

On the other hand, households may come in below the average if they:

• Use efficient reverse cycle air conditioners and LED lighting
• Take advantage of off peak tariffs for hot water and appliances
• Have rooftop solar and shift usage to daylight hours
• Live in smaller or well insulated homes

Business electricity bills in Sydney

Business bills are usually larger and more complex. Even smaller operators can easily spend thousands of dollars a year on power.

Sydney businesses are more likely to pay above average if they:

• Operate long trading hours, such as hospitality venues and supermarkets
• Rely on refrigeration, data processing, or heavy machinery
• Have grown quickly but stayed on a legacy tariff that no longer suits their profile
• Are out of contract and have rolled onto default or standing rates

Conversely, businesses that actively manage their energy can bring their costs back towards or below typical levels. Strategies can include:

• Reviewing and updating tariffs to better match their load profile
• Investing in efficient lighting, HVAC, and controls
• Negotiating market based contracts at competitive times

If you want to understand where your bill sits compared to other Sydney businesses, you can use Zembl’s free energy review to benchmark your costs.

How to tell if your Sydney electricity bill is too high

Rather than relying only on published averages, you can take a practical approach to assess your own bill.

Step 1: Check your effective rate

Take your total bill amount and divide it by the total kWh used for that period. This gives you an effective cents per kWh figure that you can compare across plans and bills.

If your effective rate looks much higher than the rates you see advertised, it might indicate that:

• Your usage and supply rates are not competitive
• You are on a plan where discounts have expired
• You have additional network or demand charges that need review

Step 2: Look for plan expiry or default rates

When fixed term plans end, retailers may move you to a default or standing offer. These default rates are often higher than market offers.

Review your bill for any notes about plan expiry, or check whether you are now on a default offer. If so, it may be time to compare your options.

Step 3: Compare against alternative offers

The most reliable way to see whether your bill is too high is to compare it with real offers available to you today.

Zembl works with a panel of leading Australian retailers and can quickly review your usage, network area, and meter type. We then present competitive options side by side, so you can see potential savings clearly before you decide whether to switch.

You can start this process digitally on Zembl’s site and, where possible, upload a recent bill to speed up the review.

Ways to reduce your electricity bill in Sydney

If your bill feels higher than it should be, there are two broad levers you can pull: reduce how much you use, and improve the plan you are on.

Reduce unnecessary usage

Practical steps for homes and businesses include:

• Upgrading to LED lighting and efficient appliances
• Adjusting thermostat settings by a degree or two
• Using timers and smart controls for heating, cooling, and hot water
• Turning off equipment fully instead of leaving it on standby
• Scheduling high demand processes outside peak times where you have a time of use or demand tariff

Even modest changes can add up to meaningful savings over a year, especially for larger users.

Match your tariff and plan to your usage

The structure of your plan should support the way you actually use power.

Examples include:

• Moving from a default offer to a competitive market offer
• Switching from a time of use tariff to a single rate if most usage is in peak times
• Exploring demand tariffs, or moving away from them, depending on your load profile
• Reviewing controlled load options for hot water or other large appliances

Because tariffs and plan structures can be technical, many businesses prefer to use an energy comparison service rather than interpret the fine print alone.

Use solar and energy efficiency together

For suitable homes and businesses, rooftop solar can offset a portion of grid consumption. To get the best result, it helps to:

• Size the system based on daytime usage
• Shift appliance use into solar hours where possible
• Remain on a competitive retail plan that reflects lower grid imports

Solar is most effective when combined with broader energy efficiency measures, rather than used as a band aid on inefficient usage.

How Zembl helps Sydney homes and businesses lower their bills

Zembl is an Australian owned comparison service that focuses on making energy simpler for businesses and households.

Our role is to:

• Analyse your current usage and rates using your latest bill
• Identify more competitive electricity and gas offers from our panel of retailers
• Explain plan options in clear, practical language
• Complete the switching process if you choose to move to a new plan

There is no obligation to switch, and you are never pushed into a contract you are not comfortable with. Our team is based locally and understands the specific features of the New South Wales market, including the way network tariffs work in Sydney.

For businesses, Zembl can also assist with:

• Commercial and large market energy procurement
• Network tariff reviews for multi site or high demand customers
• Energy efficiency and sustainability strategies over the longer term

Relevant NSW regulation and consumer protections

Sydney electricity customers operate within the National Electricity Market and benefit from several protections and tools, including:

• Oversight by the Australian Energy Regulator, which monitors prices and retailer behaviour
• Access to the Energy Made Easy website for standardised residential comparisons
• Consumer protections under the National Energy Retail Law and National Energy Retail Rules
• Complaints processes through the Energy and Water Ombudsman NSW if issues arise with your retailer

For businesses with more complex needs, independent comparison services complement these tools by tailoring analysis to your unique usage profile.

Next steps: see how your bill compares

Whether you are a household or a business, the most effective way to understand your electricity costs is to compare them against real market offers that match your situation.

You can:

• Visit Zembl’s dedicated page for electricity comparison in Sydney to explore how pricing works across the city
• Review options on Zembl’s national electricity comparison hub if you have sites outside New South Wales as well
• Learn how to compare energy plans more broadly so you can make informed decisions each time your contract ends
• Explore guidance on comparing electricity plans and understanding tariff structures before you switch
• If you are based elsewhere in New South Wales, review our guide to choosing between electricity providers in NSW

Once you have a recent bill ready, you can start a free, no obligation energy review with Zembl. Our specialists will help you work out whether your Sydney electricity bill is in line with typical costs and, more importantly, how much you could save by moving to a more suitable plan.