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The Australia Institute help us to Review AGL Energy. Australian families are battling rising energy rates while energy giants like AGL and Origin rake in record profits. Are you paying more than you should for electricity? In this article, we break down electricity costs, show why AGL energy rates are so high, and how to switch to cheaper providers for big savings.
What Drives Electricity Rates Up? Understanding Energy Company Costs
“Every $100 paid by a retail customer of AGL, a mere $12 goes on generating the electricity.”
Electricity bills in Australia are more than just the cost of the power you use. A bill is broken into:
- Wholesale Costs – The cost of buying energy from power generators.
- Network Charges – Fees for using the poles, wires, and grid infrastructure.
- Retail Margins – What electricity retailers (like AGL or Origin or EA) charge to manage and sell your energy plan.
According to the recent Power Gouge report by the Australia Institute, energy retailers have been marking up prices far above their costs. While wholesale prices have fallen in recent years, retail charges have remained stubbornly high. This means households are paying unnecessary premiums.
AGL Electricity Review – Why So Expensive?
AGL, one of Australia’s largest electricity companies, has been criticised for charging customers excessive rates while reporting huge profits. According to the report:
- AGL and Origin combined earned billions in profits while families faced financial stress.
- Retailer margins have grown disproportionately, showing they are not passing on savings from lower wholesale prices.
Many customers remain with AGL out of loyalty or confusion about how to switch providers, but this loyalty comes at a cost. The report’s findings highlight the importance of comparing providers to avoid being overcharged.
Savings by State
Finding the Cheapest Electricity Provider in Australia.
At Energy Umpire, we compare all energy plans for customers and calculate how much you could save. Switching providers is the fastest way to save on your energy bills.
Here’s how much you could save even if you are on cheapest AGL energy plan when compared with the best, most affordable providers in the market.
AGL Energy Review Victoria
AGL Deal in 5 towns in Victoria
AGL customer in 5 towns in Victoria could save $560-$319/year more on their electricity alone by instead choosing the cheapest provider. On gas, the savings are $306 to $758. Overall savings are $653-$1088. Nowhere were the AGL energy rates offer the cheapest.
| Fitzroy | Port Melbourne | Sunbury | Epping | Malvern East | Average | |
| Electricity | $319 | $330 | $347 | $560 | $327 | $377 |
| Gas | $355 | $758 | $306 | $325 | $661 | $481 |
| Total | $674 | $1,088 | $653 | $885 | $988 | $858 |
AGL Energy Review NSW
Customers in NSW could save $250-$623 /year on electricity alone if they switched to the cheapest provider instead of AGL. We didn’t find a single case where the AGL electricty or gas rates were the cheapest, even comparing with the cheapest AGL energy rates.
| Electricity | Mosman | Mount Druitt | Smithtown | Average | |
| Anytime | $293 | $623 | $250 | $389 |
AGL Energy Review Queensland
The Customer in the Energex area would pay $459-$693/year more on electricity by instead choosing the cheapest provider. We didn’t find a single case where the AGL power or gas rates were the cheapest.
| Electricity | Anytime | Time of use |
| Sunshine coast (no controlled load) | $459 | $462 |
| Ipswich (with controlled load) | $693 | $472 |
AGL Energy Review South Australia
The Customer in the South Australia area would pay $403-$416/year more on electricity by instead choosing the cheapest provider. We didn’t find a single case where the AGL power rates were the cheapest.
| Electricity | Anytime | Time of use |
| Adelaide | $403 | $416 |
