Am I paying too much for electricity? 7 signed you’re getting ripped off
If that question’s been on your mind, you’re not alone. Many Australians are paying too much for electricity every single month without even realising it. The bills roll in, the numbers seem higher than they should be, and yet we often just accept it as part of the cost of living.
Whether you’re renting a one-bedroom apartment or running a busy household with kids, chances are your electricity plan isn’t doing you any favours. Energy companies often count on our inaction. They assume we won’t question the fees, the rates, or the quiet little changes that push our bills up over time.
I used to be in the same boat. I wasn’t careless with my power use, but the bills still came in high. Then I started comparing with others—people in similar homes, using similar appliances—and realised I was paying way more than I should have been.
If you’ve ever asked yourself, “Am I paying too much for electricity?” this guide is for you. Let’s walk through seven signs your bill might be bloated—and what you can do to cut it down without turning your home into a cave.
Let’s get into it.
You Haven’t Switched Providers in Ages
Let’s start with the obvious one. If you’ve been with the same electricity provider for more than a year and haven’t checked what competitors are offering, there’s a very good chance you’re overpaying.
Providers often lure new customers in with shiny discounts and fixed-term deals. But after that honeymoon period ends? They quietly roll you onto a more expensive plan. No warning, no loyalty bonus. Just higher rates.
What to do:
Take 10 minutes to compare electricity plans in your area. Don’t just look at the brand—look at rates, daily supply charges, discounts, and contract terms. It’s easier than you think, and some comparison sites even let you switch instantly.
Your Daily Supply Charge Is Too High
This is one of the sneakiest charges on your bill. The daily supply charge is what you pay just to be connected to the grid—before you even flick a switch. Many people don’t notice it because it’s buried among the fine print.
But guess what? If you’re paying, say, $1.20 per day, that’s $438 a year. And that’s before you use any power at all.
What to do:
Next time you get your bill, find the daily supply charge line. Then compare it with other plans in your region. Some providers offer rates closer to 80 or 90 cents/day. That might not sound like a big difference, but over a year, it really adds up.
You’re Still Getting Hit with Paper Billing or Late Fees
This one stings because it’s so avoidable. Many providers charge extra for sending you a paper bill—sometimes up to $2.75 per invoice. That’s nearly $11 a year for something you probably don’t want in the first place.
Late payment fees can be even worse. One slip-up, and you’re slapped with a $10–$15 penalty.
What to do:
Go paperless. Set up direct debit. Most importantly, know your due dates. Even putting a reminder in your calendar can save you money and stress. Some providers even offer small discounts for setting up automatic payments.
You’re on the Wrong Tariff for Your Usage Habits
Here’s where things get interesting.
Not all electricity plans are created equal. Some are flat-rate plans, where you pay the same rate no matter what time of day you use power. Others are time-of-use plans, where prices vary depending on peak, shoulder, and off-peak hours.
If your household runs mostly at night or early morning, and you’re on a flat-rate plan, you might be missing out on big savings.
What to do:
Check if you have a smart meter. If you do, your provider can often tell you when your usage peaks. You might be better off on a time-of-use plan with cheaper off-peak rates.
Don’t just assume your current setup is the best—because it probably isn’t.
You’ve Never Asked for a Better Deal
This sounds simple, but it works. Electricity providers are like phone companies—they’ll give you a better deal if you ask, but they won’t offer it up freely.
They know most people don’t like making phone calls, so they quietly keep charging you more unless you do something about it.
What to do:
Call your provider. Ask, “Is this the best offer you have for my situation?” If you’re feeling bold, mention a competitor’s rate. Many providers have retention teams trained to stop you from leaving, and they’ll often throw in extra discounts or credits to keep you.
You Have Solar But a Terrible Feed-In Tariff
Solar owners—this one’s for you.
You’ve invested in panels. You’re producing clean energy. But if your electricity provider is only paying you 3 cents per kWh for what you send back to the grid, you’re getting short-changed.
Some providers pay twice that—or more.
What to do:
Compare solar-friendly plans that reward your system’s output. You worked hard (and paid good money) to get solar installed—make sure you’re getting fair value in return.
Even a few extra cents per kWh can mean hundreds of dollars a year back in your pocket.
Your Usage Is Normal… But Your Bill Isn’t
This is often the biggest red flag of all. If your household usage is typical for your area—say, 15–20 kWh per day—but your bill is always hundreds of dollars more than people you know, you’re likely on a poor-value plan.
It’s not you. It’s your provider.
What to do:
Ask your friends and neighbours what they’re paying (or join a local budgeting group online). Then compare bills and plans. Sometimes it’s shocking just how wide the gap can be—even within the same suburb.
So ask yourself… Am I Paying Too Much for Electricity?
If more than one of these signs rang true for you, then yes—you probably are paying too much for electricity. But here’s the good news: it’s fixable.
You don’t need to live by candlelight or unplug your fridge. You just need to pay attention to the details, ask questions, and compare what’s out there. Most people can knock $200–$500 off their annual bill just by switching or negotiating alone.
Quick Recap: What You Can Do Today
- Check your daily supply charge and usage rates
- Compare providers in your area
- Call your current provider and ask for a better deal
- Go paperless and set up direct debit
- Review your tariff type based on your habits
- If you have solar, demand better value
Want More Ways to Save?
We’re working on the UtilitySavvy Electricity Bill Survival Kit — a free resource packed with state-by-state comparisons, rebate breakdowns, and clever tricks to cut your bill fast.