The short answer
On a variable plan, your retailer can change the rates, with notice. On a fixed-price plan, the rates are locked for a set period, often 12 months or more. Since 1 July 2026, the gap between the two is smaller than it used to be: under the national rules, a retailer can raise prices on any market plan only once every 12 months.
Neither type is cheaper by nature. A fixed price is only good value if it starts low enough. A variable plan that is cheap today and rises in July can still cost less over the year than a fixed plan priced high to cover the retailer’s risk.
Three things people mean by "fixed"
- Fixed price
- The rates themselves are locked for a period. This is the only kind that protects you from a price rise during that time.
- Fixed term
- The contract lasts a set time, but that alone does not mean the prices are fixed. Read whether the plan says prices can change during the term.
- Fixed benefit
- A discount or credit lasts a set period, often 12 months, while the underlying rates can still change. When the benefit ends, your bill rises. See when your discount ends.
What the 2026 rules changed
From 1 July 2026, in NSW, Queensland, South Australia, the ACT and Tasmania, a retailer can increase prices on a market plan once every 12 months at most. For most customers that is within July each year. For plans with a fixed-price period, it can be no earlier than the anniversary of the contract, and the retailer must give 20 business days’ notice. Cuts to feed-in tariffs are limited in the same way. Victoria already had a similar once-a-year limit.
So a variable plan today behaves more like "fixed for up to a year, then reset in July". Mid-year surprises are largely gone. What remains is the July reset, the end of any discount or benefit period, and the price you started on.
When a fixed-price plan is worth it
A fixed price makes sense when you value certainty, for budgeting or because you expect prices to rise at the next reset, and the fixed plan’s whole-year cost on your usage is close to the cheapest variable plan. It makes less sense if the fixed plan costs noticeably more today. You are then paying a premium for insurance against a rise that may not come.
Check the exit fee too. If prices fall and a better plan appears, you want to be free to leave. Most market plans no longer charge exit fees, but read the terms of a fixed plan before you sign. See plans with no exit fee.
How to compare them fairly
- Cost each plan on a full year of your own usage, including the daily supply charge and, if you have solar, the feed-in tariff.
- For the variable plan, assume the price you see today applies until next July.
- Compare the whole-year totals. A small difference is the price of certainty. A large one is the price of a bad deal.
- Note when each plan’s price can next change, and when any benefit ends, and put the date in your calendar.
We cost both on your bill
EnergySorted costs every plan at your address, fixed and variable, on the usage from your real bill, and ranks them by what you would actually pay over a year. If prices change, we re-cost overnight and email you when another plan beats yours by enough to matter. Check a bill free, or read how energy retailers set prices and the default market offer.
Frequently asked questions
Are fixed electricity rates worth it in Australia?
Only if the fixed plan’s whole-year cost on your usage is close to the cheapest variable plan. A fixed price is insurance against a rise. It is not automatically cheaper.
How often can my retailer change my prices?
Since 1 July 2026, under the national rules, a price increase on a market plan can happen at most once every 12 months, usually in July. Victoria has a similar limit.
Is a fixed-term contract the same as fixed prices?
No. A fixed term means the contract lasts a set time. Only a fixed-price plan locks the rates. Read whether the plan says prices can change during the term.
What happens when my fixed price ends?
The plan usually moves to the retailer’s current prices, which may be higher. Your retailer must tell you before it happens. That is the moment to compare.
Can my retailer cut my feed-in tariff on a variable plan?
Yes, but since 1 July 2026, cuts to energy payments like feed-in tariffs are limited to once every 12 months, the same as price rises.
Do fixed-price plans have exit fees?
Most market plans no longer charge exit fees, but check the terms of any fixed plan before you sign.
Are most Australian electricity plans fixed or variable?
Most are variable. Fixed-price plans are offered by some retailers, usually for 12 months or more.
How do I compare a fixed and a variable plan?
Cost both on a year of your own usage. Upload a bill and we rank every plan at your address, fixed and variable, on what you would actually pay.