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How Do Electricity Prices Compare in Australia vs. the USA?

The world events of the last couple of years have set in motion a wave of economic struggles that will impact every person living on the planet Earth. However, the increased cost of living doesn’t impact everyone the same way.

For instance, if we take a look at the electric energy costs in two highly-developed countries, it’s easy to see the differences. And since we’re also considering positioning on the globe, let’s compare electricity prices in the US vs. Australia. 

We’ll consider the costs for an average household in both countries, but we will also talk about alternatives to traditional electricity and how these can help consumers keep costs down. 

Average Electricity Costs in the US vs. Australia

Before we discuss average electricity costs in each country, it’s important to mention that each country and even different states in the same country have different tariffs and plans. This way, consumers can choose the plan that works best for their daily electricity needs.

Australians pay quite a hefty price for their electricity, with most retailers charging between 25 and 40 cents per kWh. At a national level, a common household pays around 27 c/kWh, but prices can vary a lot depending on your state.

For instance, South Australians pay the most (36.11c/kWh on average) and don’t even get to enjoy some of the discounts and bonus perks other states get. On the other hand, Victoria and Queensland are the best states to live in if you want to pay the lowest prices per kWh.

Things seem better in the US, where the national average retail electricity price per kWh is 16c/kWh. However, this doesn’t mean there are no differences between states. Average prices for electricity vary between 10 and 33c/kWh depending on your state (Hawaiians pay the most for their electricity).

Is There Something We Can Do?

Are we doomed to paying huge electricity bills from now on? 

The answer is no. This increase is temporary and unsustainable in the long term. However, we may have to endure the situation a bit more until we find alternatives. The good news is that there are already a few things you can plan for.

Here are a few ideas:

Get a Great Deal on Your Electricity in Australia

Australian consumers have access to reliable platforms, such as iSelect electricity comparison website, where they can see the offers in the area where they live and decide if it would be wise to switch providers. This way, depending on your location and daily consumption, you may save significant amounts on your energy bills. 

Access to Renewable Energy

Both the US and Australia invest in renewable energy sources to cut down costs and find more environmentally friendly ways to produce energy. For instance, Iowa is using wind energy to produce a big part of the electricity it needs, while other states focus more on solar or other forms of clean energy. 

Government Relief Programs

Low-income households are the most vulnerable when it comes to price increases, so governments must find ways to help out. Right now, there are a few plans you can apply for, but depending on how the situation evolves, we may see more work in this direction.

Why Is Electricity So Expensive?

If you go back a few years and compare electricity prices, it’s easy to see there was a rapid rise that got even faster with every negative event that affected the global economy. Starting with the pandemic, moving on with supply-chain crises, and finally landing on a new war starting right next to the EU’s borders, everything has led to what we experience today.

Energy prices are triple what they were a couple of years ago, and with the start of winter in the Northern hemisphere, there may be new increases. 

Wrap Up

At a national level, Australians pay more than Americans for electricity, but if you want an accurate image of price fluctuations and differences, you should compare states in the same country. Overall, the situation is rather grim for households in both countries, but there are solutions.

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