Rising Electricity Prices in NSW Explained: How AEMO’s 55% Cost Hike Impacts You

Electricity prices in NSW are set to rise sharply following a staggering 55% increase in wholesale market costs, as reported by the Australian Energy Market Operator (AEMO). This surge is already starting to affect consumers across the state—and across the country. But what does this mean for your power bill, and how can you prepare?

At PowerMarket, we’re here to help you navigate these energy challenges and find cost-effective solutions tailored to your needs.

Why Are Electricity Prices in NSW Increasing So Rapidly?

The dramatic rise in electricity prices in NSW can be traced back to a mix of global and domestic pressures. AEMO’s latest report points to a combination of factors including:

• Increased coal and gas prices

• Reduced output from ageing coal-fired plants

• Volatility in the global energy market, especially due to conflicts abroad

• Record-high demand in extreme weather periods

These factors have pushed wholesale electricity costs up by 55% year-on-year in NSW—the steepest increase among all Australian states.

How Does This Affect Your Household Budget?

For many households, this translates to hundreds of dollars more annually in electricity costs. The average electricity prices in Australia per kWh have jumped from around 25–30 cents to 35–40 cents, depending on the state and provider. NSW residents are particularly affected due to the state’s high dependency on coal-fired power and delayed integration of renewable energy sources.

Example Impact:

If your current quarterly bill is $400, you could be paying upwards of $620 for the same usage by mid-2025 if no changes are made.

What About Electricity Rates in Queensland?

While electricity prices in NSW are climbing steeply, electricity rates in Queensland are also seeing an upward trend—though not quite as severe. Queensland has benefited from more stable generation capacity and better integration of solar energy, helping to dampen the blow.

However, with wholesale market prices rising nationwide, Queensland households and businesses are still expected to experience at least a 25–35% increase in their energy costs.

Can Switching Plans Help You Save?

Absolutely. In volatile markets like this, staying on the wrong energy plan can cost you significantly more. Retailers often pass on wholesale cost increases to customers—but they do so at different times and to varying degrees. By comparing providers, usage charges, and feed-in tariffs, you can take back some control.

PowerMarket offers a free comparison tool that allows you to view and switch to the best-value electricity plans in real time. Whether you live in NSW, Queensland, or elsewhere in Australia, we help you stay ahead of these pricing surges.

What Steps Can You Take to Reduce Your Energy Bill?

Besides switching plans, here are some quick and impactful tips to offset rising electricity prices in NSW and beyond:

• Install solar panels and battery storage: Take advantage of feed-in tariffs and government rebates.

• Use smart meters and energy monitoring tools: Track and cut down unnecessary usage.

• Upgrade appliances to energy-efficient models: Especially heating, cooling, and water systems.

• Time your usage: Run high-use appliances during off-peak hours when rates are lower.

Are Further Price Increases Expected in 2025?

Unfortunately, yes. AEMO and other market analysts forecast continued pressure on prices through 2025. With extreme weather becoming more common and older power stations being phased out, the electricity supply is likely to remain tight—especially in NSW.

However, the growing role of renewables offers hope. As more solar, wind, and battery storage systems come online, long-term price stability could return. Until then, being proactive with your energy choices is crucial.

Don’t Let High Electricity Bills Take You by Surprise

Rising electricity prices in NSW are a serious concern—but you’re not powerless. Let PowerMarket help you compare and switch to better energy deals today. Save money, reduce stress, and stay informed as the market evolves.

Start comparing electricity plans with PowerMarket now and make smarter energy decisions.

Frequently Asked Questions ( FAQS )

1. Why are electricity prices in NSW increasing in 2025?

Electricity prices in NSW are rising due to a 55% increase in wholesale energy costs reported by AEMO. Contributing factors include higher coal and gas prices, plant outages, and global market instability.

2. How much have electricity prices in NSW gone up per kWh?

On average, electricity prices in NSW have increased to 35–40 cents per kWh, up from the previous average of 25–30 cents. The actual rate varies depending on your provider and plan.

3. Are electricity rates in Queensland increasing too?

Yes, electricity rates in Queensland have also seen a spike, though the increase is smaller compared to NSW. Queensland’s rates are expected to rise by 25–35% due to rising wholesale costs and national market pressures.

4. What are the average electricity prices in Australia per kWh in 2025?

As of 2025, electricity prices in Australia per kWh range between 30 to 45 cents, depending on your state and energy provider. NSW and SA typically report the highest rates.

5. Will these electricity price hikes affect all households equally?

Not necessarily. The impact depends on your energy usage, current plan, and location. Households on variable-rate plans in NSW are likely to feel the biggest impact.

6. Can I reduce my electricity bill despite higher electricity prices in NSW?

Yes. Switching to a cheaper plan, installing solar panels, using smart meters, and reducing peak-time usage are all effective ways to lower your bill even as rates rise.

7. How can I compare electricity rates in Queensland and NSW easily?

You can use PowerMarket’s free comparison tool to view and switch to better electricity plans across NSW and Queensland. It helps you find competitive rates in real time.

8. Do electricity prices in Australia per kWh vary by provider?

Yes. Each retailer sets their own usage rates, supply charges, and feed-in tariffs. That’s why it’s essential to compare providers regularly to get the best rate per kWh.

9. Is it worth switching electricity providers now in NSW or Queensland?

Absolutely. With electricity prices in NSW and electricity rates in Queensland climbing, switching to a more affordable plan could save you hundreds annually.

10. Will electricity prices in NSW continue to rise beyond 2025?

Most likely. AEMO forecasts continued market volatility. However, as renewables become more prominent in the grid, electricity prices in NSW may stabilise in the long term.