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Electricity costs in New South Wales
New South Wales has some of the highest electricity prices in Australia. The average NSW household pays around $1,800 to $2,400 per year for electricity, depending on usage and tariff type. Many households are on default plans — known as standing offers — that charge significantly more than the best market offers available.
Price regulation in NSW
NSW electricity prices are regulated by the Australian Energy Regulator (AER) through the Default Market Offer (DMO). The DMO sets the maximum price a retailer can charge customers on standing offers. It acts as a safety net — but the best market offers are usually 10-25% cheaper than the DMO. If your bill shows you are on a standing offer or reference price, you are almost certainly paying more than you need to.
Common retailers in NSW
The major retailers in NSW include AGL, Origin Energy, and EnergyAustralia. However, smaller retailers like Energy Locals, Tango Energy, and Amber Electric often offer significantly lower rates. NSW has three main distribution networks — Ausgrid (Sydney and surrounds), Endeavour Energy (Western Sydney and Blue Mountains), and Essential Energy (regional NSW) — and the best deals vary by network area.
Common tariff types
Most NSW households are on either a flat rate (single rate) or time of use (TOU) tariff. Flat rate means you pay the same price per kWh regardless of when you use power. TOU tariffs charge different rates for peak (usually weekday afternoons and evenings), shoulder, and off-peak periods. If you have solar panels, a TOU tariff often makes more sense because you can export during the day and use cheaper off-peak power at night.
NSW-specific tips
Check whether your plan is a market offer or a standing offer — standing offers are almost always more expensive. If you have not switched retailers in the last two years, you are likely paying too much. NSW residents can also use the government's Energy Made Easy comparison tool alongside BillDecoder for a second opinion. If you have solar, pay close attention to your feed-in tariff rate — NSW rates vary widely between retailers, from as low as 3c/kWh to over 10c/kWh for the first few kilowatt-hours exported each day.
State energy market information is general guidance current as of March 2026. Verify specific rates and regulations with the AER or your state regulator.