Households in the Australian Capital Territory are facing a significant rise in their power costs, with the median annual electricity bill climbing by 10 per cent over the past year. Despite this hike, the territory's economic regulator insists that a competitive market means substantial savings are still within reach for those willing to shop around.
Price Hikes for Homes and Businesses
The latest data from the Independent Competition and Regulatory Commission (ICRC) reveals the median yearly electricity bill for a typical residential customer increased from $2043 in 2024 to $2245 in 2025. For small businesses, the rise was slightly less steep but still notable, with median bills growing by 7 per cent from $5326 to $5695.
The commission's 2025 electricity market report, released on Thursday, found that annual bills rose across all retailers, with increases ranging from about 8 per cent to 18 per cent. EnergyAustralia showed the greatest year-on-year bill growth, while Origin consistently offered the lowest median annual bills for its customers.
The Power of Shopping Around
A key finding from the report is the vast disparity in pricing. The ICRC stated there is a "very wide price spread" between the cheapest and most expensive offers, with some customers paying more than double. However, the regulator emphasised that only a tiny fraction of customers are on these top-tier expensive plans.
Encouragingly, the report shows that most home and business customers pay less than the government's reference price, often saving more than 20 per cent. Only 2 per cent of ACT electricity customers are paying above this benchmark price.
The report identified a clear "loyalty penalty" for long-term customers who remain on outdated, flat-rate electricity plans. "Households on old flat-rate electricity plans might be paying more than needed and could save by moving to new offers," the ICRC advised.
A Market in Transition
The ACT retail electricity market is showing signs of healthy competition and evolution. Market concentration is falling, and customer engagement is on the rise, with more households moving to competitive market offers.
There is also a notable shift in the types of plans customers are choosing. While about 70 per cent of residential customers remain on flat-rate offers, their market share declined between 2024 and 2025. This drop was accompanied by growth in time-of-use plans, which reward customers for shifting their energy use to off-peak periods.
"This could suggest customers are increasingly willing to adopt complex tariffs in exchange for the ability to manage their bills better," the report noted.
Overall, the ICRC concluded that the ACT market continues to deliver competitive outcomes and affordability for most customers. The rate of complaints remains low compared to other jurisdictions, and the average household spends approximately 1.5 per cent of its income on electricity. The analysis covered data from ActewAGL, Origin, Red Energy and EnergyAustralia, representing 98 per cent of the ACT's small electricity customer base.
