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SA named Australia’s least affordable state for household energy

New research has ranked South Australia last for energy affordability, with households estimated to pay the nation’s highest average bills.

South Australians are paying the highest average household energy bills in the country, with new research estimating costs at more than $192 a month.

The findings come from comparison service iSelect’s new Energy Affordability Index, which compares household energy costs with median earnings and capital city Consumer Price Index figures to examine how energy affordability differs across Australia.

South Australia finished at the bottom of the index, with average monthly energy costs of $192.08, almost $75 more each month than Victoria, which recorded the country’s lowest figure at $117.09. Over a year, that difference adds up to almost $900.

South Australians were also estimated to spend the highest proportion of their monthly earnings on energy, at 3.41 per cent.

By comparison, Northern Territory households recorded the smallest share at 1.90 per cent, followed closely by Victoria at 1.96 per cent.

The research was published by iSelect in August and combines energy costs with median earnings and CPI data in an attempt to account for wider cost-of-living pressures.

Adelaide also recorded the highest capital city CPI figure used in the index, at 102.45.

Victoria and the Northern Territory jointly received the strongest overall affordability score, despite differing household bills and incomes.

Western Australia and the Australian Capital Territory followed, while New South Wales was ranked second-last for affordability ahead of South Australia.

According to the figures, NSW households were paying an average $168.72 a month for energy, representing 2.66 per cent of monthly earnings.

Tasmanian households recorded lower average monthly bills of $141.02, but lower median earnings contributed to energy accounting for 2.5 per cent of income.

Across Australia, iSelect estimated households were spending an average 2.46 per cent of monthly income on energy bills.

The findings come after new regulated electricity prices took effect across parts of Australia from July.

For South Australian households, the Australian Energy Regulator’s 2026–27 Default Market Offer shows average electricity usage charges among the highest of the major competitive markets, with iSelect calculating an average usage charge of around 58 cents per kilowatt hour based on the regulator’s determination.

However, individual household bills can differ considerably depending on energy use, retailer, tariff, solar, household size, concessions and other factors. iSelect itself notes that energy bill estimates are indicative and actual costs vary between customers.

iSelect General Manager – Utilities Julia Paszka said, “Rising cost-of-living pressures continue to put strain on Australian households, with energy bills remaining a major contributor. Electricity prices have increased across many parts of the country, adding pressure to families already managing higher essential costs.

“These findings highlight the importance of regularly comparing energy providers to ensure consumers aren’t paying more than they need to. At iSelect, we help Australians compare plans from a range of providers to find options that suit their budget and lifestyle.”

South Australian households on low or fixed incomes may also be eligible for state energy concessions, depending on their circumstances.

For more information, click here.

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