A recent study conducted by Energyse has shed light on the varying costs of electricity across Australia’s capital cities, revealing Adelaide as the capital city with the highest electricity prices.
The comprehensive analysis, which examined 7,612 residential electricity plans available on the National Electricity Market (NEM) in April 2024, provides valuable insights into the country’s energy landscape.
The study found that Adelaide residents face the highest electricity expenses, with the real cost averaging 47.1 cents per kilowatt-hour (kWh) for a typical two-person household, once daily usage charges are considered.
This finding underscores the financial burden borne by Adelaideans in meeting their energy needs.
South Australia has come out as the jurisdiction with the highest electricity rates on the NEM, exceeding 40 cents per kWh for single-use rate plans. This represents a staggering 49% increase compared to the average rates in other NEM regions, highlighting the significant disparity in energy costs across the nation.
“Whilst all across Australia we have seen substantial increases in residential electricity prices over the last few years, there are still significant disparities in prices across our regions,” Louis Fredheim, founder of Energyse, says.
“South Australians are consistently paying some of the highest prices for electricity, despite having modest consumption. Despite consuming 67% more electricity, people in Hobart pay just 4% more per year than those in Adelaide.”
The analysis revealed that regional New South Wales, operating under the Essential Energy network, imposes the highest daily supply charges, averaging 152 cents per day.
This figure stands 61% higher than the NEM average, placing additional strain on households in these areas.
Despite Adelaide’s distinction as the city with the most expensive electricity, Hobart takes the lead in terms of overall expenditure, with households spending an average of $2,466 annually for electricity. However, this higher spending is attributed to larger consumption levels, which are approximately 67% greater than the average of other capital cities on the NEM.
Adelaide also records the highest average peak electricity rates among capital cities, standing at 47.3 cents per kWh. Meanwhile, regional Queensland (excluding SEQ) boasts the highest average solar feed-in tariff rates, offering 13.4 cents per kWh to incentivize solar energy adoption.
Conversely, Victoria presents the lowest average solar feed-in tariffs on the NEM, averaging 5.1 cents per kWh and peaking at 9.9 cents per kWh. Hobart, however, leads the capital cities in this regard, offering an average solar feed-in tariff rate of 10.9 cents per kWh.
Tasmania emerges as the region with the lowest off-peak electricity rates, providing consumers with a cost-effective option at just 15.8 cents per kWh. While Canberra imposes the highest average disconnection fees among capital cities, amounting to $43.84.
Find the complete analysis results here.
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