South Australia has the highest electricity prices in the country, and that’s saying a lot given that the cost for one kWh in Australia is already pretty steep, about $35 cents on average.
But this doesn’t mean you have to just accept high prices. Do you suspect that you’re paying too much for electricity in Adelaide? To get an accurate answer, you should first understand the cost of power to learn exactly what you are paying for. Then, compare your power bill and usage to the city’s average.
According to Canstar Blue’s 2020 research, the average annual power bill for South Australian households is about $1,759. That figure comes from the estimated average domestic power consumption of about 4,500 kWh per year on a single rate tariff. Based on these estimates and the region’s demographic data, Adelaide’s average residential pricing plans start from as low as $1,455 per year – pretty close to the overall SA benchmark.
Of course, your power bill may deviate from these figures depending on your energy usage and service tariff. Interestingly, research suggests that high-income households spend more on electricity, while residents aged above 70 years pay the lowest power bills. Plus, the more people living in a house, the lower the relative power bill when looking at it on a per-person basis.
What do you pay for exactly on your Adelaide power bill? The figure on your power bill actually sums up two independent billing factors:
1. Fixed Supply Charge
This is the daily fee charged for a connection to an electricity supply network. It ranges from 60 to 110 cents, depending on the supplier. The amount does not change regardless of how much electricity you use within the billing period.
2. Usage Rate
This is the cost of your power usage, which makes up the bulk of every power bill. Electricity companies measure power usage in kWh units – the values displayed on your meter. In Adelaide, one kWh costs between 25 and 40 cents, depending on the supplier, tariffs, supply contract, type of meter installed and time of usage. The price per kWh fluctuates from time to time due to market adjustments.
Your power bill and the total payable amount further breaks down into four more complex cost components, namely:
- Generation 34%
- Network and distribution 43%
- Retailing 16%
- Adhering to environmental policies 6%
Tips for Reducing Your Bills
Most homes in Adelaide rely on electricity for all their power needs, from running appliances and regulating the internal climate to heating water. Since your electricity bill mostly depends on your power consumption, you can easily bring the cost down by cutting your usage. Here are five ways to reduce your power bill:
- Use energy-efficient appliances, LED bulbs, heat pumps, etc.
- Switch off appliances when not in use.
- Insulate your home to minimize heating and cooling
- Use cold water whenever possible.
- Supplement your mains power with solar energy.
- Get rid of nonessential electronics.
- Compare multiple quotes from different suppliers before buying a connection.
If you still feel that you’re paying too much for electricity, even after trying some of these proven energy-saving techniques, you should consult an electrical systems expert. Hire a professional electrician to audit your energy usage and examine your wiring to help identify and solve the problem.