Save money on electricity with experts’ winter bill tips

Much of Australia is freezing right now so heaters – and energy bills – are surging. Here’s how to reduce some of the pressure.

More than a year of government rebates and giveaways have masked much of the financial pain of rising energy prices, but a combination of falling assistance and high winter usage is bringing back bill shock.

The federal government’s $300 rebate for every household has been reduced to $150 in the first half of 2025-26, while state-based energy bill discounts are winding down.

Now is the peak electricity consumption period for many homes, and MyBudget founder and director Tammy Barton says the removal of rebates is “a direct hit” on household budgets.

“When bills spike, people feel it instantly,” she says.

Fortunately consumers can do plenty to reduce energy use at home.

Julia Paszka, general manager – utilities at iSelect, says switch off appliances at the power point when not using them.

“Even when left on standby or plugged in, they still draw power,” she says.

“While the energy used may be small, it adds up over time and increases your electricity bill. This tip is essential when you’re away or travelling.”

Trap heat

“Shutting doors and closing curtains can naturally heat a room,” Paszka says.

“It offers an extra layer of protection and insulation against the cold while reducing your reliance on the heater.”

Trapping heat inside your clothes is also a good strategy, Paszka says.

“As simple as it may sound, layering up and wearing warm clothing indoors is the easiest way to stay warm without cranking up the heat,” she says.

‘If you find that you are still cold, opt for energy-efficient alternatives like an electric blanket, or even a hot water bottle, as boiling a kettle only costs 3c per use.”

Matthew and Brianna Donaldson are using technology to cut energy costs. Picture: Supplied

Barton says setting airconditioning temperatures wisely can cut costs.

“Keep your thermostat between 18 and 20 degrees,” she says.

“Every degree above that can add 10 per cent to your bill.”

Only heat the rooms that you are using, Barton says.

“Shut doors to keep the warmth where you need it,” she says.

“Use draught stoppers on doors and seal gaps around windows.”

Appliance action

Baths, showers, dishwashers and washing machines impact both energy and water bills.

“Limit showers to four minutes, use water-saving shower heads, and check your hot water system is running at 60 degrees max,” Barton says.

“Lower the washing machine temperature or use eco settings to reduce energy use.”

Barton says run full loads in washing machines and dishwashers.

“Use cold water for laundry,” she says. “Clean heater filters to ensure better performance and lower energy use.”

Loyalty does not always pay, Barton says.

“Compare and switch if there’s a better deal for your usage,” she says.

Comparison websites offer this service but may not include every provider in their database, while energymadeeasy.gov.au, maintained by the Australian Energy Regulator, offers a free comparison service in a majority of states.

Tech is your friend

Teachers Matthew and Brianna Donaldson are embracing apps and other technologies to help control their costs.

“Energy efficiency and energy-saving features are important to us when choosing home appliances,” says Mr Donaldson, 34.

“We have set up a smart routine that automatically turns off all our lights and key appliances when we leave the apartment, ensuring that we don’t leave lights or other devices running when we are not home,” he says.

“Sometimes it’s unavoidable, but where we can, we try to schedule devices during off-peak hours.”

Phil Gaut, director of consumer electronics at Samsung Electronics Australia, says some smart appliances can use 60 per cent less energy.

“Modern appliances now come with built-in energy-saving features via AI capabilities that help reduce waste and can assist in lowering bills without having to change your daily habits,” he says.

Smart home platforms make it easier to control appliances when you are not at home.

“Save by using time-scheduled and location-based routines that automatically power down appliances, like turning the lights off when the last person leaves home,” Gaut says.

“Households can use energy-monitoring plugs or check their utility provider’s tracking tools to identify the biggest energy drains and adjust usage habits accordingly.”

Gaut says AI-driven optimisation is taking energy savings further, allowing people to check their consumption across their appliances, estimating monthly bills and providing options to proactively save.

MyBudget founder Tammy Barton says bills are biting. Picture: Brenton Edwards

Timing and tactics

Paszka says a simple way to save money is to understand peak and off-peak usage.

“Energy companies typically charge higher rates for electricity during peak hours, usually from 4pm to 9pm, when everyone is home and using power for heating, cooking, and entertainment.,” she says.

“If you can adjust your habits to run your appliances outside peak times, you can potentially save a significant amount on your bill.”

“Start implementing smart cooking tactics such as opting for the air fryer instead of an electric oven, as it uses less energy,” Paszka says.

“Keep lids on pots to speed up cooking times and make food in excess so there are leftovers to reduce the usage of cooking appliances.”

Whether it’s baths, kettles, saucepans or other appliances, remember to heat only what you need, says ANZ’s managing director of customer engagement, Katherine Bray.

“Only fill the kettle with the water you need, and always boil water with the lid on when it’s safe to do so,” she says.

Bray says insulation can reduce the cost of home heating by 45 per cent.

“Sealing gaps in walls, floorboards or around doors is a simple step to significantly improve comfort and keep energy and costs lower in the home,” she says.

Originally published as Save money on electricity with experts’ winter bill tips