How to Compare Electricity Plans Without Chasing One Headline Rate
Electricity plans are marketed by their most attractive number — a low usage rate, a high feed-in tariff, a percentage discount. The actual cost depends on four numbers together: usage rate, daily supply charge, tariff window structure, and whether any discounts apply to your actual usage pattern. A plan with a low usage rate and a high supply charge beats a plan with a high usage rate and no supply charge only at certain usage volumes. The comparison requires your bill, not just the plan's headline.
- Daily supply charge is paid regardless of how much you use. A 20c/day difference = $73/year before any usage comparison.
- Usage rate vs usage pattern: a low off-peak rate only helps if you actually use power during that off-peak window.
- Conditional discounts (pay-on-time, direct debit, paperless) raise the effective rate if you ever miss a condition.
- Feed-in tariffs affect the comparison for solar households — a plan with a high import rate but low FIT may cost more than the reverse.
The five numbers that determine actual cost
Pull out your last bill and find these five numbers. They are the basis for any meaningful plan comparison.
1. Daily supply charge (c/day)
Found on the bill as a flat daily amount, sometimes called "service to property" or "network tariff." Added regardless of usage. A $0.90/day supply charge vs $1.10/day supply charge = $73/year difference before any usage.
2. Usage rate (c/kWh)
For flat-rate plans: one rate for all kWh. For time-of-use plans: separate rates for peak, off-peak and shoulder. The relevant rate is the one that applies to when you actually use power — not the cheapest rate on the plan.
3. Your average daily usage (kWh/day)
Found on the bill or in the retailer portal. Typical Australian household: 12–25kWh/day depending on climate, home size and whether there is electric heating or cooling.
4. When your usage occurs
From the retailer portal's half-hourly graph. A household with 15kWh/day but most of it in the peak period (5–9pm) on a time-of-use plan pays more than a household with the same 15kWh/day spread across off-peak hours.
5. Solar export volume (if applicable)
If you have solar, the feed-in tariff on the alternative plan multiplied by your average daily export is a component of the comparison. A higher usage rate plan with a better FIT may be cheaper than a lower-rate plan with a low FIT.
How to run the comparison
Manual method:
Annual cost = (supply charge c/day × 365) + (peak kWh/day × peak rate × 365) + (off-peak kWh/day × off-peak rate × 365) - (export kWh/day × FIT × 365)
Government comparison sites (faster and recommended):
- Energy Made Easy (energymadeeasy.gov.au) — for NSW, QLD, SA, ACT, TAS, WA
- Victorian Energy Compare (victorianenergysaves.vic.gov.au) — for VIC
These sites accept your actual usage data (or estimates) and calculate annual cost across available plans. They use your actual usage pattern, not the marketing assumptions. Enter your kWh/day figure and select time-of-use or flat-rate usage pattern — the tool does the maths.
Common traps
Conditional discounts: a plan advertised as "15% off usage" often means 15% off usage if you pay on time, go paperless and use direct debit. If any condition is missed, the effective rate reverts to the base rate. Read the conditions before assuming the discount applies.
Introductory rates: some plans offer a lower rate for the first 12 months, then revert. The comparison site calculation should use the standard (non-introductory) rate for a fair comparison of ongoing cost.
Fit-for-purpose: the cheapest plan for a household with no solar, evening-heavy usage and low daily consumption is not the cheapest plan for a household with rooftop solar, flexible loads and high overall usage. The comparison must use your specific pattern.
Use Energy Made Easy or Victorian Energy Compare with your actual daily kWh figure. Do not compare headline rates — compare estimated annual costs using your real usage. A $50–$200/year saving from switching plans requires 10 minutes of data entry, not a multi-week investigation.
Analyse your bill to identify your key usage figures before running a plan comparison.