What’s Cheaper : Gas or Electricity ?

What’s Cheaper : Gas or Electricity ? – When it comes to powering your home, you have two fuel types to choose from – electricity and gas. While both options have their pros and cons, we imagine you’re most interested to know which one is cheapest. Unfortunately the answer to that question isn’t simple, but we’re going to give it a go anyway.

Electricity Vs Gas
Before we get into it, let’s first explain a little about electricity and gas. Households can purchase gas in two forms – natural gas, which is drawn from the mains gas network, and liquefied petroleum gas (LPG), which is delivered in large tanks that have to be replaced every now and again.

Natural gas is the more common of these two fuel options, particularly in Victoria, New South Wales, South Australia and Western Australia. Gas can be incredibly effective and affordable, however, it has limited utility and is only suitable for water heating, space heating, clothes drying and cooking.

Electricity, on the other hand, has a lot more applications and can be used for all the above purposes and more. So while many homes do not have a natural gas connection, practically every home needs electricity. The question then is, should you stick with electricity only, or is it cheaper to opt for both electricity and gas?

Electricity Running Costs
Electricity customers are charged per kilowatt-hour (kWh) of electricity consumed. Households will also need to pay a ‘Daily Supply Charge’ to cover the distributor’s cost of transporting the electricity to your home. The rates you pay for electricity will depend on your state and distribution network. Typical electricity usage rates for each state are as follows:

Queensland: 28c/kWh
New South Wales: 32c/kWh
Victoria: 30c/kWh
South Australia: 42c/kWh
Western Australia: 27c/kWh
Tasmania: 26c/kWh

Keep in mind that the usage rates listed are relatively standard for a ‘single-rate’ tariff and those customers on time-of-use or block tariffs may be charged notably different rates. Daily Supply Charges are between 90c and $1.50 per day, again depending on the tariff. You need to pay supply charges regardless of how much power you actually use. For low-usage households, supply charges will make up a higher proportion of your overall costs. It’s vice versa is you are a high-usage household.

Natural Gas Running Costs
Natural gas customers are charged per megajoule (MJ) of natural gas consumed. Again, this is in addition to the fixed ‘Daily Supply Charge’, which is generally between 65 and 85 cents per day. Once again though, this varies considerably depending on your state and distribution network. Typical gas usage rates are:

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