The Energy Market in New South Wales

New South Wales, one of the states within the National Electricity Market, offers residents the ability to choose from a number of energy providers. Understanding the energy market in NSW, and knowing what you can do to make the smartest energy choices for your household, can help you save money and reduce your energy consumption.

Default market offer (DMO) in NSW

While shopping around and comparing energy plans, you’ve probably noticed the “reference price” mentioned. The reference price, or Default Market Offer (DMO) is a price set by the government to protect and inform consumers. The DMO has two main functions:

1. To protect consumers from exponential energy prices if they choose not to engage with the energy market and instead remain on the Standing Offer. While the Standing Offer doesn’t necessarily offer the cheapest energy rates on the market it does prevent energy providers from charging you more if you don’t qualify for, or choose not to subscribe to, a discounted Market Offer.
2. To inform consumers about energy plan prices and how much less (or in some instances more) expensive an energy retailers market offer is, compared to the standard offer. This is often shown as “X% off the Reference Price” in the details about an energy providers electricity plan.

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Average energy usage in NSW

Residents of New South Wales pay among the lowest for energy prices within the NEM, second only to Queensland residents who have the lowest average electricity bills. The average NSW household living in Sydney pays around $1,300 annually on electricity, while those households with pools can end up paying even more.

Thankfully, with a few energy-saving measures, you can lower your energy bills and turn your home into an energy-efficient powerhouse. A few simple energy-saving measures can include:

• Unplugging appliances when they’re not in use, to prevent them from zapping extra energy from your house
• Switching to energy-efficient appliances with a high star-energy rating
• Installing insulated curtains over your windows
• Replace old single-pane windows with double or triple glazed windows
• Changing to a smart meter to track your usage
• Invest in solar energy with New South Wales' solar rebates and concessions

NSW energy rebates and concessions

To help with the increasing costs of energy, the NSW government also has a number of rebates and concessions for residents in the state. If you’re having trouble paying your energy bills, or facing financial difficulties, it’s best to first get in touch with your energy provider to find out what all your options are, which can also include payment plans or postponing a payment.

• Family Energy Rebate NSW: Up to $180 per year
• Gas Rebate NSW: Up to $110 per year
• Low Income Household Rebate NSW: Up to $285 per year
• Seniors Energy Rebate NSW: Up to $200/year
• Pension Supplement NSW
• Energy Accounts Payment Assistance Scheme (EAPA) NSW
• Life Support Rebate NSW

Payment dispute with your energy provider?If you're having a problem with your energy provider, whether its a payment dispute, complaint, or other issue, your energy ombudsman in NSW can help to resolve the problem in a free and fair way.

Energy providers NSW

Residents of New South Wales can switch their energy provider whenever they want, and have some of the highest number of energy providers in the country. Below, we outline some of the energy providers available, as well as the fuel type they offer to NSW residents so you can compare different types of energy plans and find the best for you.

With full retail contestability within the state, customers can easily switch energy providers in NSW if they want. Switching is simple, all you need to do is get in contact with your new provider and sign up for the plan you want and they’ll let your old provider know about the switch. Once you have your final meter reading from your previous retailer, you’ll get your final bill and officially be switched to your new plan.

Cheapest energy providers NSW

Not all energy providers offer the cheapest electricity in New South Wales. Below we outline some of the cheapest electricity providers and plans in New South Wales with the biggest discounts in the state. 

Largest energy providers NSW

EnergyAustralia, AGL, and Origin Energy are the three biggest energy providers in Australia. In New South Wales, these three energy providers (known as the Big Three) have a combined total market share of over 80%. Here we outline these three energy providers' best electricity plans so you can compare their energy prices in New South Wales.

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Energy distributors in NSW

Residents of NSW have three electricity and three gas distributors who supply energy to the state. Knowing which distributor services your area is important, as they are the ones you contact if your electricity goes out or you smell gas. In addition, they maintain the electricity grid and gas lines, and they will usually post on their website about any known outages or scheduled maintenance.