Who are the big 3 energy retailers in Australia?

Why Do The Same Energy Retailers Keep Coming Up? The Truth About Australia’s “Big 3” Powerhouses

If you've ever compared your electricity bill or tried switching providers, chances are you’ve seen the same few names pop up. Again and again. Origin, AGL, EnergyAustralia. It's almost like they’ve got a monopoly on the energy conversation in Australia.

And while it might seem like coincidence — or good branding — there’s actually a bit more going on under the surface.

Let’s unpack why these three dominate, how they got there, and what it means for everyday Australians looking for a better deal.

Who are the Big 3 energy retailers in Australia?

The "Big 3" refers to:

• Origin Energy

• AGL Energy

• EnergyAustralia

These three control around two-thirds of the electricity retail market in the National Electricity Market (NEM), which includes New South Wales, Victoria, Queensland, South Australia, and Tasmania.

Each of them isn’t just a retailer — they’re also gentailers (generators + retailers). That means they own the infrastructure that produces electricity as well as the customer-facing business that sells it to you. This vertical integration gives them a serious leg up on pricing, market influence, and brand presence.

Why do these three dominate the market?

1. Historical advantages

AGL and Origin were among the early players during the privatisation of state electricity assets in the 1990s and early 2000s. They had a first-mover advantage, buying up assets and customer bases before competition could really heat up.

2. Generation ownership

They’re not just selling power — they’re making it. Between them, the Big 3 own coal-fired power stations, gas plants, solar farms and wind assets. That means they control their own supply chain and pricing models to a large degree.

3. Massive marketing budgets

Ever noticed how many Origin or AGL ads pop up during the cricket or footy? These companies pour millions into brand-building, sponsorships, and retention strategies — like bundling internet with power or offering sign-up credits that smaller retailers struggle to match.

4. Regulatory familiarity

Having been around the traps for decades, the Big 3 know how to play within the rules — and occasionally help shape them. They’ve got compliance teams, policy advisors, and regulatory strategists on payroll. That makes it easier to keep up with constant changes like the Default Market Offer or Victoria’s VDO.

Is there any real competition?

There is — but it’s a mixed bag.

In the last decade, over 30 smaller energy retailers have entered the market. Names like Powershop, Red Energy, Amber, OVO, and ReAmped have tried to shake things up with digital-first platforms, green credentials, or innovative pricing.

However, many of them don’t survive long. Wholesale price shocks (like the 2022 energy crisis) can wipe out newer players who don’t have their own generation assets. Others get acquired or quietly exit.

What does this mean for consumers? Choice is there, but it’s fragile. And the Big 3 often pick up the customers left stranded when smaller retailers exit — further consolidating their dominance.

Why don't more people switch?

This one comes down to behavioural economics.

According to the status quo bias, people tend to stick with what they’ve got — even if it's costing them more. Add in decision fatigue (who wants to compare 40 plans?) and the hassle factor of switching direct debits or chasing loyalty discounts, and it’s no surprise inertia wins.

The Big 3 are also masters at psychological pricing. They'll lure you in with low rates, then quietly roll you onto higher tariffs after a year — relying on the fact that many won’t notice or act.

Interestingly, one solution that’s gaining traction is working with an energy broker who can compare deals across the market and help businesses or households find plans that genuinely match their usage profile — without the usual guesswork.

Are they the cheapest?

Not always. In fact, they often rely on brand familiarity and default customer behaviour more than pricing competitiveness.

Smaller retailers can offer cheaper plans because they don’t have the overheads, but that comes with its own risks (see earlier: volatility, exits, uncertainty).

Still, if you’re savvy, willing to switch annually, and happy to read the fine print — you can often outsmart the Big 3. Sites like Energy Made Easy or state-based comparators in Victoria and NSW make that easier than ever.

What’s changing in the market?

Australia’s energy landscape is shifting. Hard.

• Coal retirements: The Big 3 are phasing out ageing coal assets. AGL’s Liddell is already shut. Origin’s Eraring is due to close. This opens room for renewables, but also volatility.

• Decentralised power: More Aussies are installing solar, batteries, and going off-grid. That chips away at the Big 3’s customer base — slowly, but surely.

• Regulatory reforms: With rising energy prices, governments are keeping a closer eye on retail margins, requiring better transparency, and pushing for more sustainable supply.

• Tech disruption: Apps, smart meters, demand response — all are levelling the playing field for newcomers. The Big 3 are investing heavily in innovation to stay ahead.

Is there a better way forward?

Possibly — but it depends on how we define “better”.

If better means cheaper for households, more transparency, and real sustainability, then pressure needs to come from all sides:

• Regulators that prioritise competition and consumer protection

• Media that spotlights dodgy pricing practices

• Consumers that vote with their feet (and wallets)

And, quietly in the background, providers who understand the mechanics — the actual generation costs, time-of-use variations, and how energy really flows through the market — are making smarter recommendations. Not just pushing a price, but finding the right fit.

It’s not always about beating the Big 3. Sometimes it’s about knowing when they’re the right choice — and when they’re not.

FAQ

Are the Big 3 energy companies government-owned?No — all three are fully privatised and listed on the Australian Securities Exchange (ASX).

Which is the biggest energy retailer in Australia?As of the most recent data, AGL holds the largest market share in electricity retail, closely followed by Origin and EnergyAustralia.

Are smaller energy retailers safe to use?Mostly, yes. But always check their financial stability and what happens if they exit the market. Customers are typically transferred to a “Retailer of Last Resort” (usually one of the Big 3).

Sometimes, the best move isn’t picking the cheapest plan — it’s picking the right partner. That’s why businesses in particular are increasingly turning to an energy broker who understands the market and can help them navigate it with less stress and more smarts.