Good electricity rates: How to find a better deal in Australia

Most Australians searching for good electricity rates are trying to answer a simple question: am I paying more than I should? The challenge is that “good” depends on where you are, how you use power, and what charges sit behind the advertised rate. A plan with a low usage rate can still cost more overall if the daily supply charge is high, the peak rate is expensive, or your tariff does not match your usage pattern.

This guide explains how electricity pricing works in Australia, what to look for on your bill, and how to quickly benchmark your current plan against better-value options.

What counts as a good electricity rate in Australia?

A good electricity rate is not just the lowest cents per kWh. It is a combination of:

Usage rates that suit your tariff (single rate or time of use)
Daily supply charge that makes sense for your level of consumption
Tariff structure that matches when you use energy (and whether you have controlled load or demand charges)
Clear contract terms, including benefit periods and what happens when they end
Low total annual cost when modelled on your real usage, not a generic household estimate

In other words, a “good” rate is the one that produces a lower total bill for your situation, with terms you are comfortable with.

How electricity pricing works (and why rates vary by postcode)

Electricity prices vary across Australia because your bill is made up of multiple components:

Wholesale energy costs: the market cost of electricity, which moves over time (especially in the National Electricity Market)
Network charges: costs for poles, wires, and metering, set by distributors and regulated by bodies such as the Australian Energy Regulator (AER)
Retail costs and margin: billing, customer service, risk management, and retailer margin
Environmental scheme costs: renewable and emissions-related schemes that are often built into rates

Your distribution network area is one of the biggest drivers of price, which is why two homes in the same state can see different supply charges and time-of-use windows.

What to compare to find good electricity rates

1) Daily supply charge

The supply charge is a fixed cost you pay every day, even if you use no electricity. If you are a low-usage household, or you have a holiday home, a high supply charge can wipe out the benefit of a cheaper usage rate.

2) Usage rates: single rate vs time of use

Usage is usually charged in cents per kWh. You may be on:

Single rate: one rate for all usage
Time of use (TOU): different peak, shoulder, and off-peak rates

If you have a smart meter (or interval meter), TOU may offer savings if you can shift discretionary usage into cheaper periods. The key is to compare using your bill, because peak windows and rates differ by retailer and region.

3) Controlled load (common for electric hot water)

Some homes have a separate controlled load tariff for electric hot water. If you do, compare that rate separately, and make sure any new plan includes controlled load pricing that still works for your setup.

4) Demand charges (more common for businesses)

Many business sites have demand charges, billed as $/kW based on your highest demand in a month during a set window. Two plans with similar cents per kWh can produce very different bills once demand is included. If your bill has a demand charge, compare:

the demand window (when it is measured)
the calculation method (for example, highest interval demand)
the demand rate ($/kW)

5) Benefit periods and conditional discounts

Some plans look cheap because they include conditional discounts, such as pay-on-time discounts, direct debit discounts, or short benefit periods. When checking for a good deal, ask what your pricing looks like after the benefit period ends.

6) Fees and contract terms

Also check for:

exit fees (if any)
price change rules and notice requirements
card payment fees and late payment fees
move-out provisions for renters or businesses relocating

How to use government tools to check if your rates are good

If you are a household or small business in participating states and territories, the Australian Government’s Energy Made Easy comparison tool can help you compare generally available offers. It is a useful independent starting point, especially if you are unsure what market offers exist in your postcode.

For Victoria, the Victorian Default Offer (VDO) provides a benchmark for standing offers. In other NEM regions, the Default Market Offer (DMO) plays a similar safety net role. These benchmarks can help you identify when your current standing offer pricing is likely uncompetitive.

Even with these tools, it is important to validate tariff types and ensure you are comparing like for like, especially if you have controlled load, time-of-use pricing, or business demand charges.

Common mistakes people make when chasing good electricity rates

Comparing only cents per kWh, instead of total annual cost including supply charges
Using an estimate rather than a real bill, which can miss seasonal patterns
Forgetting controlled load, then being surprised by hot water costs
Ignoring time-of-use peak windows, where most costs often sit
Letting a contract roll over onto higher pricing when a benefit period ends

How to get good electricity rates faster (without doing all the comparison work)

If you want a quick, realistic benchmark, the fastest approach is to use your latest bill and compare offers based on your actual usage and tariff.

Zembl helps Australian households and businesses do this without spending hours on retailer sites. We review your bill, check your tariff, and compare options across our retailer panel so you can see which plans are likely to reduce your total cost. If you choose to proceed, we coordinate the switch and paperwork.

Good electricity rates for households: quick checklist

Confirm whether you are on single rate or time of use
Check the daily supply charge and compare it with alternatives
If you have electric hot water, confirm controlled load rates
Look for expiry dates on discounts or benefit periods
Compare using your real bill, not an online average

Good electricity rates for businesses: what to focus on

Businesses often have more complex bills, and “good” can depend heavily on tariff selection and demand exposure. Focus on:

demand charges (if present)
time-of-use exposure and peak pricing
network tariff suitability, especially if your operating hours have changed
contract timing, ideally starting a review 60 to 120 days before renewal

If your business spends less than around $30k per year, a guided bill comparison can often identify savings quickly. For larger multi-site organisations, structured procurement and tariff checks can unlock bigger improvements.

Frequently asked questions

Is the cheapest electricity rate always the best?

No. The best value plan is the one with the lowest total cost for your usage profile, including supply charges and any demand or controlled load components, plus terms you can live with.

Will switching electricity retailers interrupt my supply?

In most cases, no. Your electricity is still delivered through the same poles and wires. Switching is mainly an administrative change in who bills you.

How often should I compare electricity rates?

Many households and small businesses review at least once a year, and any time they receive a price change notice. Also review before a discount or benefit period ends.

Can I negotiate a good electricity rate?

Negotiation is more common for businesses, especially with higher usage, multiple sites, or clear contract timing. For households, savings usually come from comparing market offers and switching to better-value pricing structures.

Next step: get your rates checked against the market

If you want to know whether your current electricity plan is delivering good value, you can start with a bill-based comparison. Explore Zembl’s comparison services here:

Share a recent bill and Zembl can help you understand what you are paying now, what is available, and whether switching is likely to reduce your total energy cost.