Finance Tech

How Do Australian Electricity Prices Compare to the World?

As more and more countries are considering adopting alternative sources of energy such as wind or solar power, energy providers have increasingly been researching and investing in these technologies, too. At the same time, for many, electricity has remained the most affordable source of power, and thus the most commonly chosen. However, in an increasingly globalized world when individuals can work remotely from a variety of cities, it’s worth investigating how electricity prices compare in countries. While several online tools can help you Compare electricity prices, here’s some information about Australian energy pricing compared to other countries.

The Organization for Economic Cooperation and Development, has analyzed electricity prices from a variety of global leaders to provide an accurate record of comparison. This research was conducted in 2014. Its list of 32 countries includes countries such as Australia, the United States, Germany, France, Japan, and Canada, among many others. It also establishes a national average of $23.03 from the list, while adjusting for purchasing parity. 

The top five most expensive countries on the OECD’s list are, in descending order, Germany, Portugal, Poland, the Slovak Republic, and Spain. Germany’s average electricity cost comes in at $37.84 kilowatts an hour, while Spain’s clocks in at $31.42. Conversely, the bottom five most expensive countries in ascending order from least expensive are Norway, Canda, the United States, Korea, and Switzerland. Norway’s average electricity cost is only $8.47 and Switzerland’s is $13.98.

So, where does this put Australia? Far from being in the top or bottom of the pack, Australia ranks in the bottom 12 countries when it comes to electricity price, averaging about $20.47 US dollars. This is a great price point to be at when compared to both the average and the most expensive country on the list, Germany. Still, it’s important to note that the data listed for 2014 is higher than just 10 years prior. In fact, usage and cost have increased across the board for most countries with a high number of households.

Of course, electricity usage across Australia can vary depending on the city you live in. For example, households South Australia and New South Wales both have higher annual electricity bills on average, with prices coming in at about $1,900 for both cities. Conversely, Victoria and Queensland are about $300 cheaper a year on average. This means that on a monthly basis, you’re paying about $25 more a month in a city such as New South Wales than you are in Victoria.

Electricity usage also varies based on how many people live in the household. In turn, this affects the price that you pay per year. For example, in an Australian household, a single individual can expect to pay about $1,300 on average, whereas a family of three or four will pay closer to $2,000. This means that Australian families pay more than those without a spouse or partner, regardless of the city that they live in. This sort of pricing difference manifests similarly across all countries, and for logical reasons, because more people consume more power.

Ultimately, a variety of factors are at play when it comes to the price of electricity. For example, some countries have better infrastructure than others. At the same time, other countries are more heavily invested in combating climate change and have enacted certain laws and regulations that have an effect on the price of electrical power. Despite differing regulations and infrastructures, however, Australia is one of the most reasonably priced countries when it comes to electricity. With a lower OECD average than many other countries and high average wages, Australia is an ideal country to live in if you’re interested in saving on your monthly power bill.