As electricity prices rise in Australia, many wonder if we’re really paying more than other countries. While the cost has climbed over the years, global trends are at play. Are Australians truly getting hit harder than others, or is the situation more balanced than we think?
Electricity Prices: Where Does Australia Stand?
It’s a common belief that Australians are paying through the nose for electricity compared to the rest of the world. We’ve all heard the complaints: “We used to have the cheapest electricity in the world, but now look at us!” But how much truth is there in that? Well, the answer isn’t as straightforward as you might think.
In fact, according to the Australian Energy Council, the average price Australians paid for electricity between 2023 and 2025 was 39 cents per kilowatt-hour (kWh). This is just above the OECD average of 38c per kWh, which places us 15th in terms of the most expensive residential electricity prices among 38 countries. Not exactly the worst, but not exactly the best either.
Adjusting for Living Standards: A Different Story
However, as energy analysts point out, comparing raw numbers without considering cost of living can be a bit misleading. After accounting for the higher living standards in Australia, the country’s ranking in international electricity prices drops to 24th. So, when you factor in our relatively higher incomes, Australia doesn’t look as bad as it might seem at first glance.
In fact, for the average household in Australia, electricity is far more affordable compared to countries like Spain, Colombia, or the Czech Republic, reports The Guardian. Australia’s situation isn’t unique. Many other countries, especially in Europe, have faced significant electricity price hikes in recent years, thanks to shifts in energy markets and global challenges. It’s not just us.
A Long-Term Shift in Energy Prices
Looking back over the last decade, Australians have seen noticeable increases in their power bills. But this has happened across the globe. According to a 2016 report by the Australian Energy Council, Australia’s electricity prices were not far below the OECD average at the time, placing us 21st most expensive among 32 nations. So, while power prices have gone up a lot over the last decade, other countries have experienced similar increases.
What’s Driving the Price Surge?
So why have electricity prices been rising, both in Australia and globally? Well, the simple answer is that it’s not just one factor at play. The major contributors include the wholesale price of electricity, which has been pushed up by rising coal and gas prices. Although renewable energy prices are relatively low, the costs associated with transitioning to a greener energy grid—such as building out renewable infrastructure—have driven up the overall price.
And don’t forget about the network costs. These are the expenses associated with maintaining the transmission infrastructure, and they make up a large chunk of your electricity bill. All these elements combined create a perfect storm, making your power bill feel heavier than it should.
What About Recent Trends?
It’s true that in the last few years, electricity prices have increased. For instance, in New South Wales, Queensland, and South Australia, the Default Market Offer (DMO) has gone up by about 30-32% over the last three years. But here’s the surprising part: despite these increases, household electricity bills in these states have actually gone down in recent years, thanks to government subsidies and rebates.
In some areas, like Queensland, households have seen significant drops, from $230 per quarter in 2021 to a $100 credit today. But without these subsidies, the story would be much different. Without the help from taxpayer-funded rebates, electricity bills could have increased by as much as 66% in some regions.
So, Are We Really Paying More?
When you factor in all the variables—cost of living, energy sources, government subsidies—Australians are paying more for electricity than we did in the past. But in a global context, we’re not as badly off as we might think. While rising electricity prices are a concern, especially with the transition to renewables and increasing network costs, there are ways to keep those bills down—like investing in rooftop solar, energy-efficient appliances, and better insulation.
So, to answer the big question: Are Australians really paying more for electricity than other countries? It’s complicated. But we’re certainly not the worst off, and there are ways to navigate the rising costs without breaking the bank.
