Average Electricity Bills in Sydney (2023 – 2024)

With the cost of living biting hard and interest rate hikes seemingly never-ending, the last thing NSW families want to hear is that electricity prices are going up, again. That’s exactly what we are in for the new financial year. Come July 1st 2023 price increases are expected by as much as 25% of what you are currently paying. 

As our leaders work to identify the solutions to dodge both inflation and recession, households’ finances are compressed to the point where even heating a child’s bedroom at night can become a strain. It begs the question, what exactly is going on here? 

Having electricity in your home is not just a creature comfort.  For those in cooler climates in the depths of winter, heating is essential, which is where the majority of the electricity supply goes in July and August. In summer it’s the air conditioners needed to keep temperatures safe as well as for refrigeration to keep foods from spoiling.

While price mediators and government bodies insist that these prices are still well within an affordable range, it might not feel like that to many of us. So how can we help get the essential energy we need at an affordable price?

In this blog we look at what new costs you can be expecting come July 1st as well as what is contributing to the 2023 price hikes. Importantly we’ll be looking at what you can do to minimise the impact of growing energy prices.

Sydney LGAs	No of people per household 1 Person	No of people per household 2 Person	No of people per household 3 Person	No of people per household 4 Person	No of people per household 5 Person
Average Electricity costs for the month of June 2023	$92	$109	$139	$147	$155
Average Monthly Increase July 2023 (21.4%)	$20	$23	$30	$31	$33

Average Power Usage

Understanding your average power usage gives you more information on which provider is best and where you are spending money on electricity. That helps you make changes to how you use energy so that you can cut back on waste and reroute your energy needs to where it matters most.

The average bill reflects around 25% of the cost to produce power, the rest goes to energy retailers for the infrastructure needed to deliver power to your home. These prices fluctuate from state to state as well as provider to provider depending on what other electricity stores are available, the demand and the type of energy used to obtain electricity. An area that has access to wind power or returned solar power may be able to offer discounts at certain times of the day.

Because of the complexities in creating and delivering power, there are two components to your energy bill, which is the same if you use gas, electricity or solar. The first component is a variable rate charged according to how much energy your household consumes. 

The second component is the daily supply charge that covers connections, infrastructure, technology and staff.

Some providers can break down costs even further, showing you how much you are spending on lights, heating, refrigeration and standby so you can make choices on where to cut back or find improvements. 

Every provider charges different energy prices and supply rates. According to Canstar Blue, on average NSW residents pay 30.13 cents per kWh for general user rates and 98.66 cents per day for the daily supply charge (taken from averaging out prices from 21 providers for June 2023).

Some providers offer a very low daily rate and a high kWh – best suited to homes that don’t use a lot of power, while busy households with a lot of occupants may do better with a higher daily charge and lower kWh.

A little further into this article we’ll go into more detail on the average cost of power of NSW homes depending on the number of occupants, as well as how much you can expect the new increase to be for you.

Electricity Costs 

While energy companies determine costs from supply, demand and overheads, there are also national and state regulatory bodies working to set standard fees to create a default market offer. 

For Southeast Queensland, NSW and SA the prices are set by the Australian Energy Regulator (AER). Most providers tend to operate somewhere around this mark, and if the governing body okays an increase – as they have for July 2023 – you can expect every retailer to be quick to increase prices.

Details of July 2023 price rise

Last month, following stakeholder feedback and increased wholesale, network and environmental overheads, a change was announced to the default market offer (DMO) set by the AER. The change affects 600,000 customers across the three states who are currently on the DMO from their energy provider. These prices affect both business and residential customers.

From July 1, residential customers on standard retail plans will see price increases between 20.8 per cent to 23.9 per cent. Those who have separate energy metres for high energy use (such as electric vehicles, heated flooring or water heaters) on a controlled load, will see an increase between 19.6 per cent to 24.9 per cent for items on that separate metre. 

How you will be affected depends on your region, your supplier and the rate you are currently paying. 

NSW residents will see an increase between 19 per cent and 25 per cent, depending on the metre type and the local coverage.

The table below shows the increases expected from July 1st 2023 with examples based on an annual electricity bill of $1300 (monthly bill of $108).

Distribution zone	Increase for residential customers without controlled load	Increase for residential customers with controlled load
Ausgrid (Sydney, Central Coast, Hunter Valley)	20.8% $270 year $22.50 month	20.7% $269 year $22.42 month
Endeavour (Western Sydney, Blue Mountains, Southern Highlands, Illawarra, South Coast)	21.4% $ 278 year $ 23 month	24.9% $ 324 year $ 27 month
Essential	20.8% $ 270 year $ 23.50 month	19.6% $ 255 year $ 21 month

Reasons for July 2023 price rise

As we get deeper into 2023, energy prices are increasing worldwide, in particular across Europe, where gas shortages are felt due to Russia’s invasion of Ukraine.

While governments may have promised lower energy prices ahead of the federal election in Australia, the truth remains that caps will need to be adjusted at least in the short term to help curb inflation as well as enable energy retailers to recover costs.

Despite our distance from Ukraine, Australian energy prices are soaring towards 400%, giving the Federal Government the difficult task of balancing energy security with zero-emission targets. 

There are a number of external factors that are increasing supply and demand that can’t be easily controlled including:

• Threat of Inflation decreasing the Australian dollar value
• Sudden increase in overheads and maintenance costs
• Unreliable access to natural gas supplies
• Global supply shock resulting from Russian oil and gas sanctions 
• Output reductions and outages at local coal-fired power plants
• Ongoing supply chain disruptions including power plant delivery
• Extreme heat making coal burning less effective
• Changing weather patterns reducing the effectiveness of wind farms

Unlike many countries Australia has its own fossil fuel mines, which should put us in the clear, however, a large portion of our coal is exported and there are big question marks around the infrastructure and ability to continue using fossil fuels in Australia’s immediate future. 

Average Electricity Bills per Household

Average electricity consumption varies significantly depending on the region, season and climate, the number of appliances linked to natural gas, the type of building you live in, whether you have any controlled load, solar power and how many people are at home during the day (i.e. school-aged children or working from home couple). 

Across the Sydney LGAs the average daily usage is 15.69 kWh per customer per day, which equates to around $4.70 per day for kWh and 98 cents a day for usage. 

This average is just that, an estimate using public data on average household use with mains gas, air conditioning, no controlled load, and no swimming pool paying fixed market offer prices.

Your bill will break down the costs per quarter, however, having monthly payment plans might work best for easier payments.

Table showing how the average home will be affected by the Ausgrid 20.8% increase.

Sydney LGAs	No of people per household 1 Person	No of people per household 2 Person	No of people per household 3 Person	No of people per household 4 Person	No of people per household 5 Person
Average Electricity costs for the month of June 2023	$92	$109	$139	$147	$155
Average Monthly Increase July 2023 (20.8%)	$19	$22	$29	$30	$32

Average electricity bill for 1 person household in Sydney

If your average energy bill is currently on the default market offer you may be paying around  $92.00 a month (or $315 a quarter) on your electricity. This will increase by around $19 a month or $57.00 a quarter for customers with providers who take up the 20.8 increase.

Average electricity bill for 2 person household in Sydney

On average a 2-person household has an electricity bill somewhere around $109 a month ($325 a quarter). That’s assuming there is no solar in use but there are gas mains. For this kind of DMO you can expect an increase of up to $22.00 a month and $68.00 a quarter if your retailer increases by 20.8%.

Average electricity bill for 3 person household in Sydney

For three person homes the average electricity price is approximately $139 a month ($417.00 a quarter). The increase here will add an additional $29 a month or $87.00 a quarter.

Average electricity bill for 4 person household in Sydney

For homes with four occupants you may be paying around $147.00 a month in electricity. There will be differences from home to home as teenagers tend to use more energy than preschoolers and those working from home will need access to electricity during the day whereas an employee at work won’t. For those affected by the 20.8% increase there will be an additional $30.50 a month which works out to around $92.00 a quarter. 

Average electricity bill for 5 person household in Sydney

Busy Sydney homes will experience an increase of around $32.00 a month and $97.00 a quarter based on the average bill of $155.00 a month ($465 a quarter). For some homes that can even add more than $400 a year to current expenses.

How to save money on electricity

Customers have been warned to expect a surge in their winter power bills, however, changing providers might not be an easy option as all retailers are expected to match the new caps. It might be worth shopping around if you are not on a plan that matches your household usage – i.e. you are paying higher kWh prices when you have a large family and high energy use.

While there is a lot happening out of our control, one element that impacts prices that we can change is the increase in demand. Your local Sydney electricians can help you reduce costs and increase efficiency.

Think about how you will be heating and cooling your home and consider alternatives like:

• Using hot water bottles at night instead of heaters and electric blankets
• Having quality pyjamas, quilts and blankets suited to the seasons
• Warming the home to a lower temperature so you are comfortable with a jumper on
• Reducing the number of times the dryer is run each week
• Maximising solar power wherever possible
• Gathering the family in one main room to heat in the evenings instead of having the whole house heated
• Targeting 5-star energy rated appliances next time you shop

NSW residents are eligible for certain energy rebates, however, the state budget isn’t due until September when cost-of-living relief will be announced.

A hike in electrical prices this July is the last thing most NSW residents need, but if we focus on solutions and weather the storm we can reduce the financial burden by using our energy resources in smart and resourceful ways.

We provide electrical services in North Shore, Northern Beaches, Eastern Suburbs, Hills District and Ryde.