How Much Should You Be Paying On Your Electric Bill?

For many households, the electricity bill is one of the biggest expenses we have to manage. Each month, the average Australian home spends between $130 and $160 per month according to data form Canstar. So, what’s a reasonable electricity bill for your household and what are some simple things you can do to reduce the monthly bill?

According to Canstar’s data, the average annual power bill is:

• Victoria: $1602.32
• Queensland: $1608.76
• New South Wales: $1898.40
• South Australia: $1898.80

Of course, it’s not just about where you live despite having an interconnected power system where electrons flow across regional borders. The other factor that impacts your power use is the number of people in your home. Canstar’s data, based on a survey conducted earlier this year, says a single person household spends about $1322 per year, or about $110 per month, while a six person household spends about double that amount.

The data also found a correlation between household income and power costs with low income homes earning less that $30,000 per year spending just under $1400 per year with homes with an income in excess of $120,000 spending over $2000 per year.

Younger people also spent more on electricity with the 18-29 age group having an average annual bill of $2367 per year while the over 70s spent about $1350 per year.

However, those two data points need to be understood in the context of rebates offered to low income households and pensioners.

So what can you do to reduce your power bill?

1. Turn stuff off – don’t leave it on stand by: I was able to knock a noticeable amount off my monthly bill by using timers to turn my AV gear off for the times I don’t use it.
2. Ditch gear that’s power hungry: We recently got rid of the tropical fish tank we had. Between the filter and heater, we’ve taken $20 off out monthly bill
3. Shop around annually for a new retailer: Different retailers off different deals. Don’t get sucked in by offers of cinema tickets and avoid lock-in contracts so you can move to a better deal if one comes along