Who is the cheapest electricity retailer?

Why does your power bill feel like a lottery ticket—only the jackpot never comes?

That creeping sense that you're probably overpaying isn’t paranoia. In Australia’s deregulated electricity market, price gaps between the cheapest and most expensive retailers can run into the hundreds per year. But here’s the catch: “cheap” doesn’t just mean a lower rate. It’s about how you use electricity, how often you switch, and how well you understand the fine print.

Let’s break down who really offers the cheapest electricity—and how to make sure that “deal” doesn’t sting you later.

Who is the cheapest electricity retailer in Australia?

Short answer: It depends on your location, usage patterns, and timing—but right now, smaller retailers often come out ahead.

Electricity pricing is a postcode lottery. Retailers charge differently across states and even between neighbouring suburbs. As of late 2025:

• In Victoria, ReAmped Energy and GloBird Energy consistently offer low-cost plans, especially for high-usage households.

• In NSW, Mojo Power and Nectr are frequently among the cheapest for solar-savvy consumers.

• In Queensland, OVO Energy and Lumo Energy have competitive offers, but discounts often require digital billing or autopay setups.

• In South Australia, Energy Locals and 1st Energy sometimes undercut the Big Three—Origin, AGL, and EnergyAustralia.

Sites like Compare the Market give you a decent snapshot, but retailers game these platforms with teaser rates and conditional discounts. The actual cheapest option usually comes down to how you use power—do you run appliances during peak hours? Have solar? Live in a regional area?

Why is the “cheapest” plan often not the cheapest long-term?

There’s a behavioural science concept called the framing effect—where people react differently depending on how something is presented. In energy retail, this shows up as:

• Big discounts off inflated rates (e.g. 20% off usage charges—but on a 40c/kWh tariff)

• Time-sensitive “welcome” deals that reset after 12 months

• Confusing conditional offers (like bill credits that require monthly direct debit + eBilling + no late payments)

It’s no accident. The complexity is a feature, not a bug.

Retailers know that most customers suffer from choice overload, then default to inaction. A 2022 ACCC report found over 40% of Australians hadn’t switched power providers in five years—even though regular switchers saved up to $400 annually.

Are electricity comparison sites reliable?

Only to a point.

Comparison sites often make their money via referral commissions, meaning you’re only seeing offers from retailers who’ve agreed to pay for placement. This is where using electricity brokers or specialist switching services can offer an edge—they often negotiate directly with smaller retailers to get behind-the-scenes deals or unlisted rates.

Just be wary: some brokers operate more like salespeople. Look for transparency on how they’re paid and whether they compare the full market.

How do I actually find the cheapest plan?

Here’s a behavioural shortcut: don’t try to optimise for every single cent. Just get closer to the bullseye.

Use this three-step approach:

1. Start with your bill – Grab your last 3 months of usage (kWh and peak/off-peak if relevant).

2. Run a personalised comparison – Use Energy Made Easy (run by the Australian Energy Regulator) or Victoria’s Energy Compare tool. They’re independent and access the whole market.

3. Re-check every 12 months – Set a reminder. Plans change, and inertia is expensive.

Optional step: contact a broker if you’ve got unusual usage (e.g. a home EV charger, battery setup, or you're managing multiple sites).

Why do smaller retailers often beat the big guys?

There’s a psychological principle at play: loss aversion. Big retailers rely on customer laziness—they don’t need to win your business on price if they’ve already got you.

Newer or challenger brands, however, need to undercut or innovate to grow. That’s why they often offer:

• Simpler pricing (flat rates, no sneaky “pay on time” discounts)

• More flexible plans (month-to-month contracts)

• Better support for solar and battery customers

Plus, some have made renewable integration part of their brand story—appealing to values-driven consumers.

That said, smaller players can be more volatile. If wholesale prices spike or regulation shifts, they may fold or exit the market, as seen during the 2022 energy crisis.

Is switching really worth the hassle?

Yes. Behaviourally, switching is what we call a one-off habit-forming action—like setting up direct debit or joining a gym. Once done, the barrier disappears.

Let’s put some numbers on it:

• Average savings from switching in 2024: $250–$400/year for standard metro households

• Time required: 15–30 minutes

• Payoff: That’s like being paid $800/hour

If someone told you that reading your last power bill could make you $300 richer, would you do it?

Real talk: Anyone who's done this knows...

There’s a sense of smug satisfaction when you call your retailer to cancel and they suddenly offer you a lower rate. That moment? That’s the proof it was overpriced all along.

And while the switching process isn’t flawless, it’s miles easier than it used to be. There’s no interruption to supply, and most plans don’t even need a contract or technician visit anymore.

You don’t need to chase perfection—just avoid paying the “lazy tax”.

Final thoughts: Don’t let “too hard basket” cost you hundreds

Power prices aren’t just numbers on a bill—they’re nudges that shape your habits. If a slightly higher feed-in tariff gets you to use more solar, or if a time-of-use plan pushes you to shift laundry to off-peak, that’s behavioural design in action.

And when you understand those nudges, you stop being a passive consumer and start playing the game with your eyes open.

On that note, if you’ve ever wondered how commercial clients cut through the confusion, many turn to electricity brokers who negotiate bulk deals or usage-based pricing to lock in better value.

FAQ

Is the cheapest electricity retailer the same in every state?

No. Pricing varies by state and even by suburb. Always compare based on your postcode and usage profile.

Do I need to sign a contract to switch?

Most retailers now offer no-lock-in contracts. You can usually switch without penalty.

What if the new retailer goes bust?

Your power supply won’t be cut. You’ll be automatically transferred to a default provider under the “Retailer of Last Resort” scheme.