Energy costs in NSW can quickly add up – and you might be paying more than necessary if you haven’t compared your options recently. Electricity and gas prices vary widely between providers, so regularly checking what energy plans are on offer can help you find a better deal.
How does the NSW energy system work?
In New South Wales, the energy market is deregulated, so residents have the freedom to choose their electricity and gas providers rather than being restricted to a single supplier.
The state has three different electricity distributors and four gas distributors, each with multiple retail providers that provide energy plans to consumers. These suppliers set their own prices and offer various plans with different rates, discounts and incentives.
This competition helps lower prices and provides more options for customers, meaning you can shop around, compare plans and switch providers to find deals that best suit your needs.
Why your choice of energy provider could be restricted
If you live in an apartment complex or retirement village, you might be on an embedded network. This is a private electricity or gas network supplying multiple homes, where the operator buys energy and resells it to residents rather than residents buying directly from retailers.
In NSW, you do have the right to choose your energy retailer within an embedded network, but your options are usually limited and switching providers can be more complicated than in the general market. However, in October 2025, the NSW Government announced plans to improve prices and protections for embedded network customers, which could allow residents to access better energy deals.
Types of energy plans
What is the average energy bill in NSW?
The size of your energy bill in NSW varies depending on factors like household size, energy use, time of year and the tariff you’re on.
It’s also influenced by changes to the standing offer rates. In July 2025, electricity prices increased following an update to the Default Market Offer (DMO), causing households in NSW on standing offers to face the largest annual bill rises in Australia, between $155 and $228 on average – an increase of up to 9.7%.
Based on DMO figures, the typical annual bill for a three-person household consuming around 5,000 kWh is now about $2,370 in NSW – roughly $198 per month – compared to the national average of approximately $1,994 per year.
If your bill is higher than this but your household uses less electricity, it could mean you’re on a more expensive plan and there might be better options available for you.
How to compare electricity in NSW
How electricity plans work in NSW
In NSW, there are two types of electricity plans:
Standing offers
These are the default prices that apply if you haven’t chosen an electricity plan. Known as the Default Market Offer (DMO), they are set annually on 1 July by the Australian Energy Regulator (AER).
The DMO acts as a benchmark price to ensure those who don’t compare or switch still pay a fair amount for their electricity. However, standing offers often come at higher prices than competitive market plans.
Market offers
These plans are offered by electricity retailers competing in NSW’s deregulated market. Providers can set their own prices and offer a range of discounts and incentives.
Market contracts typically offer better deals, and they can be either fixed-term contracts with locked-in rates for the duration, or variable contracts where rates may change during the term. However, it’s important to review these plans regularly to ensure you’re still getting good value.
Types of electricity tariffs in NSW
Your tariff determines how much you pay based on when and how you use energy. In NSW, you may be able to choose from several electricity tariff types, depending on your electricity provider and meter setup:
- Single rate: you pay a fixed rate for electricity no matter what time of day you use it.
- Time of use: charges vary depending on when you use electricity. This tariff requires a smart meter to record usage at different times.
- Demand: this is a charge based on your highest peak electricity use during a billing period. This also requires a smart meter.
- Controlled load: this applies to specific appliances like electric hot water systems, which are run on a separate, lower-cost tariff controlled by your energy provider. Again, a smart meter is required for this tariff.
Smart meter rollout in NSW
The Australian Energy Market Commission (AEMC) aims to roll out smart meters to all electricity customers by 2030. As part of this, all new electricity meters installed for residential and small business customers in NSW must be smart meters.
Solar power and feed-in tariffs in NSW
Over 30% of homes in NSW have solar panels, allowing them to generate their own electricity. This reduces reliance on the grid and can reduce energy bills by cutting the amount of power you need to buy.
If you have a solar power system, you can look for electricity plans that include a feed-in tariff (FiT), which pays you for the excess electricity your solar panels send back to the grid. The amount you receive depends on your retailer – some offer nothing, while other FiTs pay up to 10 cents per kWh as of November 2025.
On top of this, NSW recently introduced a two-way pricing system – sometimes called the ‘sun tax’ – which charges solar users for exporting power to the grid when supply is high and rewards them for exporting during peak demand times. One way to offset these charges is to install a solar battery to store excess energy for later use, with government incentives helping cut the cost of a typical installed system by around 30%.
Looking ahead, in November 2025, the federal government proposed the Solar Sharer Offer initiative as part of reforms to the DMO. This plan would give households in NSW, South East Queensland and South Australia at least three hours of free solar power daily, whether or not they have solar panels.
Cheapest electricity plans in NSW
These are some of the lowest-cost plans available through Savvy for someone living in Sydney. The cheapest plan saves around 25% compared to the current reference price.
| Retailer | Plan | Estimated monthly cost | Estimated annual cost |
|---|---|---|---|
| ENGIE | Engie NRMA | $126 | $1,479 |
| Momentum Energy | Warm Welcome | $132 | $1,548 |
| EnergyAustralia | Balance Plan | $137 | $1,611 |
| OVO Energy | The One Plan | $137 | $1,612 |
| Red Energy | Red Living Energy Saver | $137 | $1,613 |
| AGL | Smart Saver | $141 | $1,651 |
| 1st Energy | 1st Saver | $150 | $1,755 |
| Alinta Energy | HomeDeal Select | $151 | $1,768 |
| Source: Econnex, November 2025 Costs based on average daily usage of 10.68 kWh |
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Electricity providers in NSW
Before comparing electricity plans in NSW, it helps to know the difference between your distributor and your retailer, which handle different parts of your energy supply.
Your energy distributor owns and maintains the physical network that delivers electricity or gas to your home.
Your energy retailer (or provider) is the company you buy your electricity or gas from. They handle your billing, set your rates and plans, and interact with you as a customer.
When comparing energy plans, you’re choosing between retailers. Your distributor depends on where you live and stays the same regardless of which retailer you pick.
Electricity distributors in NSW
NSW has three electricity distributors. Which one supplies your area depends on where you live:
- Ausgrid: supplies electricity to Sydney, the Central Coast and the Hunter region.
- Endeavour Energy: covers Western Sydney, the Blue Mountains, the Lower Hunter and the Central West.
- Essential Energy: supplies regional and rural NSW, including the North Coast, Riverina, and parts of southern NSW.
Electricity providers in NSW
There’s a wide range of electricity retailers available across NSW, giving you plenty of options to choose from.
- 1st Energy
- AGL
- Alinta Energy
- Amber Electric
- CovaU Energy
- Diamond Energy
- Dodo Power and Gas
- Energy Locals
- EnergyAustralia
- ENGIE
- Flipped Energy
- Future X Power
- GloBird Energy
- Kogan Energy
- Momentum Energy
- Nectr
- Origin Energy
- OVO Energy
- Pacific Blue
- Powershop
- Red Energy
- Sumo
- Tango Energy
What is a default retailer?
A default retailer is the energy company assigned to you based on where you live if you haven’t chosen your own provider. They supply your electricity by default and must offer a standing offer plan, so you’re always connected even if you haven’t signed up with a retailer.
In New South Wales, your default retailer depends on which electricity distributor supplies your area:
- Ausgrid: EnergyAustralia is the default retailer
- Endeavour Energy: Origin Energy is the default retailer
- Essential Energy: Origin Energy is the default retailer
Default retailers also offer their own market plans with a range of prices, discounts and incentives to compete with other providers.
How to compare gas in NSW
How gas plans work in NSW
Unlike electricity prices, gas prices in NSW are not regulated or capped. This means gas retailers set their own rates without government limits.
There are fewer gas providers compared to electricity, but if you have mains (natural) gas, you can still compare a good range of plans and switch providers.
Types of gas tariffs in NSW
Gas plans in NSW use single rate tariffs. Many gas providers also use tariff blocks, where your gas usage is divided into blocks and you pay one rate for the first amount you use, and a different rate once you use more.
If you use bottled gas (LPG), these plans can’t be compared in the same way. Bottled gas is typically supplied differently and isn’t part of the regulated gas network.
Cheapest gas plans in NSW
As of November 2025, the cheapest gas plans available to someone living in Sydney via Savvy are:
| Retailer | Plan | Estimated monthly cost | Estimated annual cost |
|---|---|---|---|
| Alinta Energy | HomeDeal | $55 | $639 |
| AGL | Smart Saver | $57 | $668 |
| Red Energy | Red Living Energy Saver | $58 | $674 |
| EnergyAustralia | Balance Plan | $58 | $680 |
| ENGIE | ENGIE Perks | $70 | $821 |
| Source: Econnex, November 2025 Costs based on average daily usage of 26.94 Mj |
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Gas providers in NSW
Gas distributors in NSW
NSW has four gas distributors, each serving a different area of the state:
- Central Ranges System: covers Tamworth and the surrounding areas.
- Jemena Gas Networks: distributes to Sydney, Newcastle, Central Coast, Wollongong and some parts of country NSW.
- Wagga Wagga Gas Distribution Network: supplies Wagga Wagga and the surrounding areas.
- Evoenergy: supplies Palerang (Bungendore) and Queanbeyan.
Gas retailers in NSW
There is a variety of gas providers in NSW, though available plans and options can vary depending on where you live. Retailers include:
- AGL
- Alinta Energy
- CovaU Energy
- Dodo Power and Gas
- EnergyAustralia
- Energy Locals
- Engie
- GloBird Energy
- Kogan Energy
- Origin Energy
- Powershop
- Red Energy
- Sumo
Why compare energy plans through Savvy?
Tips for comparing energy in NSW
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Know your usage
Look at your recent energy bills to understand where and when you use the most energy to help you find a plan that suits your specific needs.
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Understand rates and charges
Look at both the daily supply charge (a fixed fee) and usage rates (what you pay per unit) to get the full picture of costs.
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Compare gas and electricity separately
The cheapest electricity plan doesn’t always mean the cheapest gas plan from the same provider. Comparing each separately can save you money.
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Check discounts carefully
Discounts can help, but always consider the total cost, as plans with smaller discounts could still cost less overall.
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Review your plan regularly
Energy plans and prices change, so check your options at least annually to make sure you’re on the best deal.
NSW energy rebates and concessions
If you live in NSW, you may be eligible for one or more energy rebates and support depending on your situation.
Energy Bill Relief Fund
The Energy Bill Relief Fund, which provides eligible NSW households with up to $150 in bill relief, is coming to an end. The fund had been extended but will finish on 31 December 2025. After this, rebates will generally only be available if you are a pensioner, a Centrelink recipient or have a medical condition.
Energy concessions
While the $500 electricity rebate scheme that provided a one-off payment to NSW residents in 2023 has since closed, other concession schemes remain available to eligible applicants.
