Infrastructure News

Study finds high household electricity spending

Editors Publicspectrum Apr 23, 2024

2 min read

Analysis of 7,612 residential electricity plans on the NEM in Australia in April 2024 reveals that households in Hobart are spending the most on electricity of any capital city on the NEM, with a typical annual bill of $2,466 per year for two-person households.

Hobart households spend the most on electricity of all capital cities on the NEM, according to a new study by Energyse. The analysis also found that Hobart has the highest solar feed tariff rates, at an average of 10.9 cents per kWh, 72% higher than the average for the other capital cities on the NEM.

This analysis involved Energyse analysing 7,612 residential electricity plans on offer on the National Electricity Market (NEM) in Australia in April 2024. Factors such as daily supply charges, usage rates, solar feed-in tariffs, and disconnection fees were analysed.

City with highest spend: Households in Hobart spend the most on electricity (average of

$2,466 per year for a 2-person household), though this is due to their large consumption (67% greater than the average of the other capital cities on the NEM).

Most expensive capital city: Adelaide is the capital city with the most expensive electricity, with electricity costing 47.1 c/kWh for a typical 2-person household once daily usage charges are factored in.

Highest electricity rates: South Australia has the highest electricity rates on the NEM, at over 40 c/kWh for single-use rate plans. This is 49% higher than the average for the rest of the NEM.

Regional NSW (on the Essential Energy network) has the highest daily supply charges, at an average of 152 cents per day. This is 61% higher than the average for the rest of the NEM.

Highest solar feed in tariffs (capital city): Hobart is the capital city with the highest average solar feed in tariff rates, at 10.9 c/kWh.

Highest peak electricity rates: Adelaide is the capital city with the highest average peak electricity rates, at 47.3 c/kWh.

Highest solar feed in tariffs (region): Regional Queensland (excluding SEQ) has the highest average solar feed in tariff rates, at 13.4 c/kWh.

Lowest solar feed in tariffs (region): Victoria has the lowest average solar feed in tariffs on the NEM, at an average of 5.1 c/kWh and a maximum of 9.9 c/kWh.

Lowest off-peak electricity rates: Tasmania has the lowest off-peak electricity rates, at just 15.8 c/kWh.

Highest disconnection fees: Canberra is the capital city with the highest average disconnection fees, at $43.84.

“While Hobart households spend the most on electricity of any capital city on the NEM, this isn’t the result of high electricity prices. In fact, Hobart has some of the lowest electricity prices and the highest solar feed tariff rates. The large expenditure is due to high electricity consumption. Despite consuming 67% more electricity, people in Hobart pay just 4% more per year than those in Adelaide,” Energyse founder Louis Fredheim said.

Editors Publicspectrum

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