Who is the cheapest energy supplier in Australia?

Ever opened your energy bill and felt that quiet rage bubbling up? You’re not alone.

Thousands of Australians go through comparison site fatigue each year—jumping from one "cheapest" energy plan to another, only to find their bills creeping up anyway. So who really is the cheapest energy supplier in Australia? And is chasing the bottom dollar actually costing you more?

Let’s unpack it. Quickly, clearly, and without the jargon.

Quick answer: Cheapest supplier depends on your postcode, usage, and discounts

There’s no single winner when it comes to the cheapest energy provider in Australia. Why? Because:

• Prices vary by region (NSW, VIC, QLD, SA all have different market conditions)

• Usage patterns change pricing impact (off-peak, solar feed-in, etc.)

• Conditional discounts and billing styles distort real prices

Still, some names regularly appear in "best value" lists. These include:

• ReAmped Energy – Often the cheapest for heavy users, but known to exit tricky states (they left the QLD market during the 2022 price crisis).

• GloBird Energy – Popular in VIC and SA, offering lean pricing and solid online service.

• Mojo Power – Known for flat rates and solar-friendly plans.

• Origin and AGL – Surprisingly competitive with bundled discounts, despite being Big 3 giants.

But here’s the kicker — the cheapest plan today might not be the cheapest next quarter.

Why do prices keep changing? (And why it’s not just about wholesale rates)

Many Aussies assume that cheaper electricity = lower wholesale prices. That’s only part of the equation.

Here’s what actually drives retail energy pricing:

• Wholesale energy market volatility (prices spiked 285% in mid-2022)

• Retailer hedging strategy – some buy energy in advance, others float on spot prices

• Regulatory costs like environmental charges and network fees

• Conditional discounts that lapse after a few months

• Behavioural pricing tactics (like discount framing and bill smoothing)

In short, what looks cheap up front often hides complexity underneath. Providers bet on you not switching again next quarter.

What’s the smarter move than just chasing “cheapest”?

Anyone who's spent hours on comparison sites knows the feeling: analysis paralysis.

Here’s what savvy households are doing instead:

• Using independent energy broker services who scan the live market, not just advertised rates.

• Choosing consistency over discounts – avoiding plans that penalise missed payments or require app usage for lower rates.

• Factoring solar feed-in tariffs – not just supply charges.

• Locking in fixed rate plans when wholesale volatility is high.

In fact, we've seen some families in regional Victoria save hundreds by switching to smaller providers that aren’t even listed on major comparison sites — simply because they used a broker who accessed unpublished rates.

How behavioural economics plays a part in your energy bill

You might not realise it, but providers bank on you behaving in predictably irrational ways.

Let’s take a look at a few common traps:

• Framing effect: “22% discount!” sounds better than “we charge more upfront and claw back later.”

• Loss aversion: Staying on a bad plan because switching feels risky.

• Default bias: Sticking with your provider because, well, they’re already set up.

Research by the ACCC shows many households could save $300–$400 a year simply by reviewing plans annually. But few do. Not because they're lazy, but because the effort feels bigger than the reward — a classic cognitive misfire.

Is it worth switching every year?

In most cases, yes.

Energy retailers often bank on inertia. Their sharpest offers are usually for new customers. Staying loyal rarely pays off — unless you’ve negotiated a custom retention deal (yep, that’s a thing).

Tips:

• Set a yearly calendar reminder to compare or renegotiate.

• If your provider has a “no lock-in” clause, use that leverage to ask for a better rate.

• Ask for actual cost per kWh (not just percentage discounts).

• Check exit fees, hidden charges, and usage tiers.

Some brokers are now bundling electricity, gas, and internet under simplified billing — reducing the switching headache without paying more. One such energy broker has been helping small businesses cut through this complexity with human advice, not just algorithms.

Real-world example: How one Melbourne couple slashed $600/year

Liz and Raj from Preston were on a “market-leading” plan from a major retailer. Or so they thought. A broker found them a new plan with:

• A flat supply charge (no sneaky tiered rates)

• Higher solar feed-in

• Zero exit fees

Result? $51 less per month, and more transparency.

Their feedback? “We didn’t realise how complicated we’d made it. Having someone break it down in plain English was the real win.”

FAQ

Q: Is the Default Market Offer (DMO) always the cheapest?No — it’s a benchmark, not a deal. Think of it like a reference price, not a discounted one.

Q: Are smaller energy providers risky?Not always. Many are financially stable and offer better customer service. But check their track record for abrupt exits or billing issues.

Q: Can I trust comparison sites?Use them as a starting point. But remember: many are commission-based, so they may exclude cheaper plans from non-partner providers.

Final thought

Yes, finding the cheapest energy supplier in Australia matters — but not at the expense of transparency, flexibility, or your sanity. Instead of jumping at every “cheapest” offer, consider smarter tools and people who can help you match your real energy habits to the right plan.

And if you’re tired of the spreadsheet-and-guesswork approach, consider using an energy broker who can do the legwork — without you having to game the system every quarter.