Average Electricity Bill for 2-Person Households 2025-26 Update

Are you curious about how your electricity usage compares to others? Whether you’re a new renter, homeowner, or just looking to cut costs, knowing the average electricity bill for a two-person household in Australia can help you budget—and even save. This guide breaks it all down for you, from average costs to the factors impacting your bill and actionable tips to lower expenses. 

*Terms and Conditions Apply

How much does a two-person household spend on electricity in 2024-25 & 2025-26?

Electricity costs swing widely across Australia once you factor in postcode, retailer, appliance habits and even the local climate. Based on the 2025-26 “safety-net” prices just set by the regulators, a two-person household on a standing offer could pay as little as about $1,546 a year in CitiPower’s inner-Melbourne zone right up to around $2,741 in Essential Energy’s regional NSW network. Put another way, that’s roughly $129 – $228 a month before any concessions or solar savings kick in. 

Here’s a state-by-state breakdown of electricity costs under a single-rate tariff for a typical two-person household without solar power:

†Usage figures are the regulators’ “representative” consumption levels for a two-person, all-electric household without rooftop solar. Bills are GST-inclusive standing-offer reference prices — a safety-net that only about 8 % of residential customers (≈ 476 000 households) in the DMO states still use. 

• NSW: Biggest lift this year (≈ 9 %) driven by higher network builds and wholesale contract prices. 
• SE QLD & SA: Modest increases (~3-4 %) as softer wholesale costs offset higher retail overheads. 
• Victoria: Flat overall, but inner-city CitiPower customers see a 6 % bump thanks to network changes. 

Sources: DMO 6, DMO 7, VDO 24-25, VDO 25-26 

Disclaimer: Figures come from the Australian Energy Regulator’s Default Market Offer (NSW, SE QLD, SA) and the Victorian Essential Services Commission’s Victorian Default Offer (VIC), effective 1 July 2025 – 30 June 2026. They’re reference prices for standing-offer customers only and not personalised quotes. Your actual bill will vary with usage, tariff type, solar exports, concessions and retailer pricing. 

“Most households are on discounted market plans, which often sit 15-25 % below these safety-net prices. If you’ve never compared, chances are you’re paying more than you need to.” - AER 

Outlook for 2026-27 

“The regulators won’t set 2026-27 prices until May 2026, but early network tariff submissions point to low-single-digit rises. Keep an eye on wholesale futures and any extension of bill-relief credits.”

Why Do Costs Vary Across States? 

The variation in costs is influenced by a combination of factors: 

1. Climate – States with hot summers or cold winters often see higher bills due to increased cooling or heating. 
2. Energy Infrastructure – What energy resources the state uses (e.g., coal vs. renewables) and the cost of maintaining its electricity network. 
3. Market Competition – States with more energy retailers (such as Victoria) often offer better rates. 
4. Government Regulation – Some states, like Tasmania, have regulated energy prices, which impacts average bills. 

Must read: Electricity Bill in Australia: State-by-State

Factors That Impact Your Electricity Bill 

Understanding what influences your bill can help you identify areas for savings. Here are the main factors affecting costs: 

1. Energy Usage Habits 

How much energy you and your household use is the most critical factor. A two-person household might consume around 4,000–5,600 kWh annually. Larger appliances such as air conditioners, water heaters, and washers/dryers tend to drive up electricity usage. Leaving devices on standby or forgetting to switch off lights also stacks up over time. 

2. Appliance Efficiency 

Modern, energy-efficient appliances consume far less electricity compared to older models. Energy ratings on household electronics can provide a quick benchmark for how much power they will use daily. 

3. Seasonal Changes 

It’s not surprising that bills soar during summer heatwaves or winter cold snaps. Heating and cooling systems account for about 40% of a household’s electricity usage in Australia. 

4. Tariff Types 

Your electricity bill is calculated based on your provider's tariff structure. Common tariff types include: 

• Flat Rate Tariff – You pay the same rate per kWh all day. 
• Time of Use Tariff – Prices vary depending on the time of day (e.g., peak vs. off-peak hours). 

Knowing your tariff type can help you save time your electricity use. 

5. Solar Power Systems 

Households with solar panels typically pay substantially less. By generating your electricity and selling excess back to the grid, you reduce reliance on your energy provider—slashing your bill. For two-person households, investing in solar is often a solid long-term choice. 

Tips to Lower Your Electricity Bill 

Worried about a higher-than-average electricity bill? Here are some easy ways to lower your costs: 

1. Make the Switch to Energy-Efficient Appliances 

Replace outdated appliances with energy-efficient models. For example: 

• Swap incandescent bulbs with LED lights. 
• Install a smart thermostat to optimize heating and cooling systems. 
• Upgrade to a water heater with a heat pump, which uses less electricity. 

2. Be Strategic with Heating and Cooling 

Instead of running heaters or air conditioners non-stop, focus on heating or cooling just one or two rooms that you use most. Close doors and window blinds to keep temperatures stable. Investing in insulation can also improve energy efficiency. 

3. Adjust Your Usage to Off-Peak Hours 

For households on time-of-use tariffs, operating energy-intensive appliances like dishwashers, washers, and dryers during off-peak hours can make a big difference. 

4. Turn Off Power-Hungry Appliances When Not in Use 

Many devices consume phantom power even when turned off but plugged in. Unplug devices or use power strips to save energy. It’s a small change that adds up. 

5. Negotiate the Best Energy Plan 

Shop around for better rates periodically. Compare deals across providers to ensure you’re not overpaying. Many energy companies offer discounts to attract new customers. 

6. Consider Going Solar 

While upfront costs may seem high, solar systems often result in substantial long-term savings. Explore incentives or rebates available in your state to reduce installation costs. 

Are You Paying More Than You Should? 

If your bill seems higher than the figures outlined above, it might be time to reevaluate your energy usage habits, review your appliances, or switch providers. Regularly reviewing your usage and staying informed about energy-saving practices will not only save dollars but also contribute to a greener future. 

Final Thoughts on Electricity Costs for Two-Person Households 

Electricity expenses are one of the most significant utilities for Australian households. While averages vary across states, understanding where your bill sits can help you make informed decisions about changes to your usage habits and energy plan.  

Power is essential, but paying higher bills doesn’t have to be your status quo. Whether it’s as simple as switching off unused lights or as significant as installing solar panels, every action helps.  

Want to explore more ways to save? Compare energy providers and plans now to ensure you’re maximising your savings without compromising comfort. 

Disclaimer: Information is general and for Australian audiences only. Amounts shown are the regulators’ Default Market Offer (NSW, SE QLD, SA) and Victorian Default Offer (VIC) standing-offer reference prices. They are not personalised quotes. Actual bills vary based on usage, tariff type, concessions, solar exports and retailer pricing. Econnex compares plans from a panel of providers; not all plans or providers in the market are compared. Availability, pricing and speeds differ by location.