How to Connect Electricity in Australia

Electricity runs every home, yet most people never look at how it is priced or why their bill keeps changing. When pricing and plans are hard to follow, bills can quietly creep up..

Australia’s electricity market works differently across states and territories. In some areas, you can choose between providers and electricity plans. In others, options are limited. Understanding how it all works affects both what you pay and what options are available to you. 

Picture of Written by  <u>Filza Ahmad</u> Senior Content Editor - Energy and Electric Vehicles
Written by Filza Ahmad Senior Content Editor - Energy and Electric Vehicles

Updated on 23 August 2024

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How Electricity Works in Australia

Electricity reaches your home through a series of steps that most people never see.

It begins at power stations, where electricity is produced using sources such as coal, gas, wind, solar, and water. From there, electricity travels across transmission lines to local networks. These networks use poles and wires to deliver power to homes and businesses.

You do not deal with these systems directly. You deal with an electricity retailer. The retailer sets your plan, sends your bill, and manages your account. Switching retailers changes the price you pay, not the electricity coming into your home.

The Energy Market

The National Electricity Market started in December 1998. It is the main wholesale electricity market in Australia and covers about 80 percent of the country’s electricity. It connects Queensland, New South Wales, the ACT, Victoria, South Australia, and Tasmania across a network that runs for about 4,500 kilometres. Electricity is bought and sold through a central system based on supply and demand.

The market came from reforms in the 1990s. Before that, electricity was run by state systems. The changes opened the market and separated generation, networks, and retail. Some government assets were also sold during this time.

The competitive setup means different generators produce electricity instead of a single source. They compete on price, which can help keep wholesale costs lower. Retailers then buy this electricity and offer plans to consumers. 

In 2004, the system moved to a national framework under the Australian Energy Market Agreement. Since then, more renewable energy and battery storage have been added to the system.

The market is managed by the Australian Energy Market Operator. It matches supply with demand by scheduling generation in short time periods. The NEM remains one of the longest connected electricity systems in the world.

Retailers and Distributors in the Market

Electricity distributors handle the network. They own and maintain the poles, wires, and meters that deliver electricity to your property. You cannot choose your distributor. It is assigned based on where you are located and does not change.

Retailers are the companies you deal with. They buy electricity and sell it to you. They set the rates, manage your plan, and send your bill. This is the part you can choose. You can switch retailers if you find a better option. If there’s a power outage, the distributor fixes it. If you have a billing or plan issue, your retailer handles it.

Providers Cover Areas
Ausgrid Sydney, Central Coast, Hunter (NSW)
Endeavour Energy Western Sydney, Blue Mountains, Illawarra (NSW)
Essential Energy Regional and rural NSW
Powercor Western Victoria
CitiPower Melbourne CBD and inner suburbs United Energy: Southern Melbourne and Mornington Peninsula
AusNet Eastern and northern Victoria
Jemena Northern and north-west Melbourne
SA Power Networks South Australia
Energex South East Queensland
Ergon Energy Regional Queensland

Electricity providers Australia

Choose your electricity plan and receive your bills directly. In deregulated states, you have the freedom to select your preferred energy retailer, giving you more control over rates, plans, and services tailored to your needs.

Providers Cover Areas
AGL Nationwide, major provider across NSW, VIC, QLD, SA
Origin Energy Nationwide, strong presence in all NEM states
EnergyAustralia NSW, VIC, QLD, SA, ACT
Red Energy Nationwide, owned by Snowy Hydro
Alinta Energy NSW, VIC, QLD, SA, WA
ENGIE VIC, SA, NSW, QLD (mainly business customers)
Momentum Energy VIC, NSW, SA, QLD (renewable focus
Powershop NSW, VIC, QLD, SA (digital-first retailer)
Shell Energy Nationwide, strong in commercial and industrial sectors
OVO Energy NSW, VIC, QLD, SA (app-based plans)
Dodo Energy NSW, VIC, QLD, SA (budget-focused plans)
Tango Energy VIC, NSW, SA, QLD
Blue NRG VIC, NSW, QLD, SA (business-focused
ActewAGL ACT and parts of NSW

Is Your State Deregulated?

Most Australians live in deregulated electricity markets. This means retailers compete for customers.

Deregulated states include:

  • New South Wales
  • Victoria
  • South Australia
  • South-Eas Queensland
  • Australian Capital Territory

Western Australia, and the Northern Territory have limited choice or government-controlled markets. Tasmania operates a regulated electricity market where prices are set by the state, and while customers can choose a retailer, competition is limited.

Is your state deregulated? Comparing plans can lead to lower bills.

What You Pay for on Your Electricity Bill

Your electricity bill has two main charges.

The supply charge is a daily fee for being connected to the electricity network. It covers the cost of maintaining poles, wires, and meters. You pay this charge every day, even if you’re away or use no electricity at all.

The usage charge is what you pay for the electricity you actually use. It’s measured in kilowatt-hours (kWh) and depends on how much power your household consumes. This charge can be a single rate or vary by time of day if you’re on a time of use plan.

Some plans advertise low usage rates but have high daily supply charges, which can add up over time. Others have lower daily fees but higher usage rates. Looking at both charges together gives a better picture of what a plan will really cost you. Small chan

How to Read an Electricity Bill

Here we focus on understanding electricity bills and how each charge adds up.

Begin with the account details. This section shows the supply address, the National Meter Identifier, and the billing period. It also notes whether the reading is actual or estimated. Estimates appear when the meter cannot be accessed.

Next come the charges. The supply charge is a daily cost for staying connected to the network. The usage charge shows how many kilowatt hours were used and the rates applied. Some plans use one rate. Others separate usage into peak and off peak periods.

Finish with the adjustments. Discounts, concessions, rebates, fees, and solar credits appear here. Add these together and the total amount for the period becomes clear. Some plans split usage into peak and off-peak electricity, which changes how much you pay. Checking each section helps avoid common electricity billing mistakes that go unnoticed.

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How Much Electricity Plans Cost

Electricity plan costs vary more by location and usage pattern than by retailer name.

Across most parts of Australia, households on standard plans often see quarterly electricity bills between $350 and $550. Homes with higher usage, electric heating, or larger families can exceed this range, especially in colder or hotter climates.

Annual electricity costs for an average household commonly fall between $1,400 and $2,200. State network charges play a major role in where a home sits within that range. Victoria and New South Wales tend to sit lower than states with higher network costs.

Time of use plans can shift costs further. Homes that use more electricity overnight or during the day may pay less than households that concentrate usage in peak evening hours.

Types of Electricity Plans

There are several types of plans available in Australia.

Market offers are competitive plans set by retailers. They may include lower rates, bill credits, or short-term discounts. Most households are on market offers, but prices can rise when discounts end.

Standing offers apply if you don’t choose a plan. These are usually the most expensive option and don’t include discounts. Many people end up on a standing offer after moving home or when a deal expires.

Default offers are price caps set by the government to protect customers who don’t shop around. Victoria uses the Victorian Default Offer (VDO), while NSW, SA, and South East Queensland use the Default Market Offer (DMO). These act as safety nets but aren’t always the cheapest choice.

What Are Electricity Tariffs?

Your tariff decides how your usage is charged. A single rate tariff charges the same price at all times. It’s simple and suits households with steady usage.

A time of use tariff charges different rates depending on the time of day. Peak periods cost more, while off-peak times are cheaper. You usually need a smart meter, and it works best if you use more power outside peak hours. For a deeper breakdown, see time-of-use electricity explained and how it affects daily costs.

A controlled load tariff applies to appliances like electric hot water systems or pool pumps. These are charged at a lower rate on a separate meter.

Choosing the wrong tariff can push your bill higher, even if the rates look cheap at first.

How Long It Takes to Connect Electricity

Connection times depend on whether electricity is already set up and when the request is submitted.

For homes with an existing connection, electricity is usually restored within 1 to 3 business days. Urgent or same day connections can be completed within a few hours when requests are lodged before distributor cut off times. In most areas, cut off times for same day connections fall between 11 am and 1:30 pm on business days.

In Victoria, smart meters allow electricity to be connected remotely, which often enables same day activation without a site visit.

Properties that need a new meter take longer. New meter installations are managed by the distributor and can take several weeks, so planning ahead is important.

Homes with registered life support equipment should contact their electricity retailer directly, as standard online connection requests may not be suitable and additional protections apply.

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Visual Safety Inspection in Queensland

Queensland requires a visual safety inspection before electricity can be connected in some situations. This applies when a property has been disconnected from the electricity network for more than 30 days.

When electricity is set up at a Queensland property, a visual safety inspection is usually booked automatically. This inspection checks that the property is safe to reconnect and must be completed before power can be turned on. Someone needs to be present at the property during the inspection, and a time window is provided in advance.

A visual safety inspection may not be required when the property has had power within the last 30 days. In these cases, the connection may proceed without an inspection. Checking the property’s recent power status can help avoid unnecessary delays.

What Is a Smart Meter?

A smart meter tracks how much electricity your home uses and sends the information straight to your electricity provider. This removes the need for manual readings and helps avoid estimated bills.

Smart meters also make it easier to connect or switch providers and allow access to plans where electricity prices change during the day. Many people use the data to better understand when they use the most power.

Most homes in Victoria already have a smart meter. Other states are adding them over time, depending on location. Smart meters give better visibility into usage and billing.

Remote Activation With a Smart Meter

Smart meters allow electricity to be turned on or off without anyone visiting the property. This process is called remote activation.

When electricity is set up at a home with a smart meter, the retailer sends a request through the network to the meter. Power is often connected on the same day once basic safety checks are completed, such as confirming the main switch is turned off.

Remote activation is common in Victoria, New South Wales, and South Australia, where smart meters are widely used. It is less common in Queensland and the Australian Capital Territory, where many homes still rely on manual connections.

Remote activation is also used when switching electricity providers. The power stays on while the account changes in the background. Costs are often lower than manual connections, depending on the meter and local distributor.

Other Types of Electricity Meters

Not every home has a smart meter. Some properties still use older meter types based on age and location.

A basic meter records total electricity use over time. It does not show when electricity is used and usually requires manual readings. Homes with this meter are limited to simple plans.

Some homes have an interval meter. This records usage in set periods but may not send data automatically. Plan options can be limited and switches may take longer.

Many properties also have a separate meter for appliances like electric hot water systems. This electricity is charged at a lower rate during set times.

Every meter is linked to a National Metering Identifier called an NMI. This number identifies the property connection and is used when setting up or changing electricity services.

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What Is an NMI Number?

Every electricity connection has a unique identifier called a National Meter Identifier, or NMI.

The NMI links a specific address to its electricity meter and network connection. Retailers use it to set up accounts, transfer services, and arrange connections. The NMI stays the same even when you change retailers.

An NMI is usually 10 or 11 characters long and appears on electricity bills, often near the account details or meter information. Pro

How to Read Your Electricity Meter

Reading your electricity meter helps you understand how much power your home uses and check your bill.

Older meters show a row of numbers or small dials. Read the numbers from left to right. When a pointer sits between two numbers, record the lower one. Any red numbers or decimals are not used for billing.

Digital meters display numbers on a screen. Press the display button to cycle through readings. Record the main reading shown for total electricity use. Leading zeros still count.

Some meters record more than one reading, such as peak and off peak usage. Each reading tracks electricity used at different times and is billed under its own rate.

Smart meters send readings directly to the electricity provider. Manual readings are not required, though usage can still be viewed through online accounts or apps.

Solar and Feed-In Tariffs

Solar panels produce electricity during the day. Your home uses this power first. Any electricity not used flows back to the grid and appears on your bill as a feed in credit.

Feed in tariffs are paid per kilowatt hour and differ by state and retailer. Most plans now use net tariffs, which means you are paid only for electricity exported after your home has used what it needs. Some plans pay different rates depending on the time electricity is sent to the grid.

In New South Wales, benchmark feed in tariffs for 2025 to 2026 sit between about 4.8 and 7.3 cents per kilowatt hour. In Victoria, minimum feed in tariffs ended in July 2025 and retailers now set their own rates.

A higher feed in tariff does not always mean lower bills. Usage charges and daily supply fees still matter. Solar savings usually come from using your own electricity during the day rather than exporting it.

Green Electricity Plans

Green electricity plans change how electricity use is accounted for.

Retailers offer these plans by purchasing renewable energy certificates. Each certificate represents electricity generated from sources like wind, solar, or hydro. The power delivered to the home stays the same.

Some retailers include green options within a plan. Others offer them as an add on. Coverage can range from a small portion of usage through to 100 percent. Government accredited GreenPower plans meet higher standards and sit at the top of this range. These plans are part of broader renewable electricity options available across Australia.

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Carbon Offset Options

Carbon offsets take a different approach. Retailers often offer offsets as an optional extra on standard electricity plans. These offsets fund approved projects that reduce or capture emissions elsewhere, such as reforestation or landfill gas projects.

Offsets are calculated against the estimated emissions from household electricity use. Some plans include them by default, while others allow customers to opt in.

Offsets balance emissions. They do not replace renewable energy generation.

Concessions and Rebates

Many households qualify for help with electricity bills. Most support comes from state programs, with extra help provided by the federal government.

Ongoing concessions reduce electricity bills for eligible households. These usually apply to customers holding a Pensioner Concession Card, Health Care Card, or DVA Gold Card. Some states also include seniors cards and households with approved medical needs. These discounts continue while eligibility remains active and the account stays in the resident’s name.

Additional protections apply to homes with registered life support equipment. This includes approved medical devices that rely on electricity, such as oxygen concentrators, or ventilators. The equipment must be registered with the electricity retailer. Once registered, the household receives extra safeguards, including advance notice of planned outages and restrictions on disconnection.

Rebates work differently. These are often one off payments or bill credits. The federal Energy Bill Relief Fund is commonly applied automatically through the electricity retailer. In most cases, the account must be in your name and linked to your main home.

Checking your bill or contacting your retailer confirms which concessions, rebates, and protections apply.

Why Electricity Prices Change

Electricity prices change over time for several reasons. The cost of buying electricity moves with market conditions. Network charges rise when poles and wires need work. Government fees also shift. Retailers combine these costs when setting their plans.

Price increases often take effect around the middle of the year. Without checking your plan, higher rates can apply without much warning.

Looking ahead to 2026, price forecasts remain mixed. Some regions may see stable or slightly lower wholesale costs as more renewable generation comes online. At the same time, network investment and infrastructure upgrades are expected to continue, which can place upward pressure on bills.

When Should You Compare Electricity Plans?

You should compare plans if:

  • Your bill has increased
  • Your discount has ended
  • You’ve moved house
  • Your usage has changed

You haven’t checked your plan in over a year,
Many people stay on the same plan for years even when cheaper options exist.

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What to Check Before You Switch

Before changing electricity providers, look at:

  • Supply and usage rates
  • Contract length
  • Exit fees
  • Payment fees
  • Bill credits and conditions
  • Solar feed-in tariffs if applicable

Switching providers does not interrupt your power. The change is handled behind the scenes. Simple electricity usage tips can lower costs without changing your routine too much.

Connecting Electricity When Moving House

When moving home, electricity needs to be connected in your name before you collect the keys. This moment gives you the chance to choose a plan that suits your usage rather than staying on a default option.

Many people accept the retailer suggested by a real estate agent or property manager. That option is convenient, but it is rarely the lowest priced plan available. Agents do not compare plans and do not consider how much electricity you use.

Arranging electricity early helps avoid delays, higher connection fees, and arriving at a property without power. It also gives you time to compare rates, check contract terms, and start your service on the right plan from day one.

Electricity in Apartments vs Houses

Electricity works differently in apartments than it does in houses, and this affects the choices available.

Most houses are connected directly to the local electricity network. This allows full access to electricity retailers in deregulated areas. Plans can be compared and providers can be changed without restrictions.

Apartments can be different. Many apartment buildings operate under an embedded network, where electricity is supplied to the building through a single provider. In these cases, individual apartments may have limited choice or no choice at all. Prices are set by the network operator rather than the wider market.

Some apartment residents can choose a different retailer, but this depends on how the building is set up. Knowing whether an apartment is part of an embedded network helps explain why plan options may be limited.

Electricity for Renters

Renters usually have the same electricity rights as homeowners.

In most properties, renters can choose their electricity retailer and plan, provided the home is not part of an embedded network. The electricity account is placed in the renter’s name and bills are their responsibility during the lease.

Landlords cannot require renters to stay with a specific retailer unless the property uses an embedded network. Renters are also only responsible for electricity used during their tenancy.

Setting up electricity before moving in helps avoid delays. Closing the account on the correct date when moving out prevents paying for electricity after the lease ends. 

How CheapBills Can Help

Most people stay on the same plan without checking better options. Taking time to compare electricity providers can reduce long term costs. CheapBills helps Australians compare electricity plans from a wide range of providers and make sense of what they are paying for. We look at your current plan, compare available options, and help find better rates where they exist. CheapBills can also arrange electricity when you are moving home and handle provider switches without interrupting your supply. The aim is straightforward. Pay for the electricity you use and avoid plans that cost more than they should.

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Electricity Ombudsman Contacts by State and Territory

When a dispute with an electricity retailer or distributor cannot be resolved directly, contacting the ombudsman in your state or territory provides a free and independent way to seek help. These offices handle billing disputes, connection problems, disconnections, and ongoing service issues.

New South Wales

Energy and Water Ombudsman NSW (EWON)
Handles electricity and gas complaints after you have contacted your provider first.
Phone: 1800 246 545
Website: www.ewon.com.au

Victoria

Energy and Water Ombudsman Victoria (EWOV)
Assists with electricity, gas, and water complaints that remain unresolved.
Phone: 1800 500 509
Email: ewovinfo@ewov.com.au
Website: www.ewov.com.au

Queensland

Energy and Water Ombudsman Queensland (EWOQ)
Supports residential and small business customers with electricity and gas disputes.
Phone: 1800 662 837
Website: www.ewoq.com.au

South Australia

Energy and Water Ombudsman South Australia (EWOSA)
Provides free dispute resolution for electricity and gas customers.
Phone: 1800 665 565
Website: www.ewosa.com.au

Western Australia

Energy and Water Ombudsman WA
Investigates unresolved electricity and gas complaints across Western Australia.
Phone: 1800 754 004
Phone: 08 9220 7588
Website: energyandwater.ombudsman.wa.gov.au

Tasmania

Energy Ombudsman Tasmania
Handles electricity and gas disputes after attempts with the retailer.
Phone: 1800 001 170
Website: www.energyombudsman.tas.gov.au

Australian Capital Territory

ACT Civil and Administrative Tribunal (ACAT)
Hears unresolved energy and utility disputes, including electricity matters.
Phone: 02 6207 1740
Website: www.acat.act.gov.au

Northern Territory

Ombudsman NT
Assists with unresolved electricity and energy complaints in the Northern Territory.
Phone: 1800 806 380
Website: www.ombudsman.nt.gov.au

How the Ombudsman Helps

Ombudsman services review complaints that remain unresolved after contacting your electricity provider. They can assess billing errors, delayed connections, disconnections, and poor service responses. These services are independent and free for consumers.

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Filza Ahmed

Senior Content Creator

Filza writes about energy, internet, insurance and moving tips at Cheap Bills. She breaks down what you need to know when comparing providers, switching plans or setting up services at a new place. See full bio

Frequently Asked Questions

Find answers to common questions about Electricity

Electricity connections are arranged through a retailer. Providing the new address, move in date, and identification allows the retailer to submit the request to the distributor and organise connection within standard timeframes.

Most electricity connections take one to three business days. Same day connections may be available when requests meet distributor cut off times. New builds take longer when a new meter must be installed.

The National Meter Identifier, known as an NMI, links an address to its electricity meter. Retailers use it to connect the correct supply point. NMIs appear on electricity bills and meter labels.

Access to the meter must be clear on connection day. Locked gates, dogs, or blocked meter boxes can delay the process. Smart meters often allow remote connections without a site visit.

Electricity distributors may charge a connection or reconnection fee. The amount depends on location, urgency, and meter type. These fees are set by the distributor, not the retailer.

The account holder should contact the retailer to close the electricity account on the move out date. This prevents being billed for electricity used after keys are returned.

Homes with registered life support equipment require direct contact with the retailer. Special protections apply, and online connection requests may not be suitable for these properties.

Electricity plans may include fees beyond usage and supply charges. These can include payment processing fees, late payment fees, paper bill fees, and connection or disconnection charges. Reading the plan details helps avoid unexpected costs.

A smart meter records electricity usage throughout the day and sends readings automatically to the retailer. It allows access to time based pricing and remote services. Most new or replacement meters installed in Australia are smart meters.

Australia has more than twenty electricity retailers operating across different states and territories. The retailers available to you depend on where you live and whether your area has a deregulated electricity market.

Electricity prices rise when wholesale energy costs increase, networks charge more for maintenance, or government fees change. Retailers adjust plan prices to reflect these costs, often during scheduled price review periods.

You can switch electricity providers in deregulated markets at any time. Switching does not interrupt your power supply. The process is handled between retailers and usually does not involve fees or technician visits.

A solar feed in tariff is a credit paid for excess electricity exported from your solar system to the grid. Rates are paid per kilowatt hour and vary by state, retailer, and electricity plan.

Australia generates electricity from a mix of sources. Coal and gas still supply most power, while renewable sources such as solar, wind, and hydro make up a growing share of electricity generation.

Green electricity plans allow customers to support renewable energy through programs like GreenPower. These plans usually cost more and do not change the electricity delivered to your home, which already comes from a mixed energy supply.

Carbon offset plans balance emissions by funding approved environmental projects. Some retailers include this at no extra cost while others charge a small fee. Offsetting does not change how electricity is generated or delivered.

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