The market is bigger than the big three
Most Australians can name AGL, <a href="/retailers/origin-energy">Origin</a> and <a href="/retailers/energyaustralia">EnergyAustralia</a> — the "big three" that between them supply a large share of households. But there are dozens of smaller challenger retailers competing hard, including <a href="/retailers/amber-electric">Amber</a>, GloBird, Tango, OVO, and many others. These challengers exist precisely because they think they can charge differently, and understanding how their models diverge from the giants helps you judge who might be cheaper for you.
The big three compete on scale, brand, dual fuel, and integrated products like solar and battery, with mature apps and large call centres. Challengers tend to compete on price, a specific niche, or a different charging model altogether. Neither camp is automatically cheaper — the giants are not always expensive, and the challengers are not always the bargain — so the honest answer, again, is that it depends on your usage, state and tariff.
How challenger pricing models differ
Some challengers simply try to undercut the big three on a conventional supply-charge-plus-usage-rate plan, keeping costs low by running lean. GloBird and Tango, for example, have often positioned themselves as low-price, no-frills retailers. Others compete on a particular angle — OVO has leaned into features and sustainability, while Amber uses a fundamentally different model: it passes through the wholesale (spot) price of electricity for a monthly membership fee rather than selling you a fixed retail rate. That is a genuinely different way to be charged, not just a cheaper version of the same thing.
The trade-offs cut both ways. Challengers can offer sharper prices, simpler plans, or innovative models, but they may have smaller support teams, fewer product extras, and less brand familiarity. Some households love a low-cost no-frills retailer; others value the reassurance and integrated products of a giant. And because smaller retailers can change or withdraw offers quickly, their headline deals need the same careful reading — guaranteed vs conditional discounts, benefit periods, solar feed-in — as anyone else’s.
Who each genuinely suits
The big three suit households that value brand familiarity, large support operations, dual fuel, and integrated solar and battery products, and who are comfortable comparing regularly to stay on a competitive plan. No-frills challengers like GloBird or Tango suit price-focused households happy to forgo extras for a lower rate. Feature- or values-led challengers like OVO suit people who want something specific — particular tools, sustainability credentials, or a different experience. And wholesale-model retailers like Amber suit engaged households that can shift usage and accept price variability in exchange for potential savings.
The important thing is that "big" and "small" are not proxies for "expensive" and "cheap". They are different businesses with different strengths, and the cheapest plan for you could sit in either camp. Ruling out challengers because they are unfamiliar — or assuming they must be cheaper because they are small — are both mistakes.
Compare the whole market, not just the famous names
This is exactly where a whole-of-market tool earns its keep. EnergySorted costs every plan from every AER-listed retailer — the big three and every challenger — against your real peak, off-peak and shoulder usage, your solar export and your gas steps, then ranks them cheapest-first and proves the result against your current bill. A cheaper challenger is never hidden because it lacks a big brand budget, and a giant is never ruled out unfairly either.
Because EnergySorted takes no retailer commissions (it is funded by a roughly $39-a-year subscription), no retailer — large or small — can pay to rank higher, and it re-checks nightly so a newly launched challenger deal or an expiring benefit period does not slip past you. Browse <a href="/retailers">all retailers</a> or read our <a href="/resources/best-electricity-retailer-australia">best electricity retailer</a> guide to get oriented.