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Winter heating costs in Australia: why bills spike and how to heat cheaply

Heating is the biggest driver of the winter bill. Here is why it spikes, which heating types cost least to run, and how to stay warm for less.

By EnergySorted Editorial Team · Updated · 6 min read

Why the winter bill jumps

In the cooler states, the winter quarter is usually the most expensive of the year, and heating is almost always the reason. Warming a home takes a lot of energy, and unlike lighting or a fridge it runs for hours across the coldest part of the day — which, for time-of-use customers, is often the pricey evening peak. A cold snap can push the winter bill well above the mild quarters even though nothing about the plan has changed.

The trap is blaming the retailer when the real driver is the season. That does not mean you are powerless: the two levers are how efficiently you heat and how well your plan and tariff suit heavy evening use. Both are worth pulling before winter properly sets in.

The cheapest ways to heat

Not all heating costs the same to run. A reverse-cycle air conditioner (a heat pump) is generally the cheapest electric option because it moves heat rather than making it — delivering several units of warmth for each unit of electricity. Old electric bar and fan heaters, and oil column heaters, are the opposite: every unit of power becomes one unit of heat, which makes them expensive to run for long periods despite being cheap to buy.

Gas heating sits in between and depends heavily on gas prices in your state. Whatever the source, heating the whole house is the costly part — warming only the room you are in, and closing doors to contain that heat, is the single biggest behavioural saving. A reverse-cycle unit heating one living zone at a sensible temperature will usually beat a portable electric heater run all evening.

Keep the heat you have paid for

Heating a leaky house is like filling a bath with the plug out. Draught-proofing is the cheapest efficiency upgrade there is: seal gaps under doors, around windows and unused chimneys so the warm air you are paying for stays inside. Close curtains at dusk to slow heat escaping through glass, and open them to any winter sun during the day.

Set the thermostat sensibly — around 18-20°C is comfortable for living areas, and every degree higher adds to the cost. Rugging up, using draught stoppers and heating zones rather than the whole floor plan will do more for your bill than any single gadget. Insulation in the ceiling, if you can add it, pays back over many winters.

Check your tariff and plan before winter

Heavy evening heating hits time-of-use peak rates hard. If most of your heating happens in the peak window, the peak c/kWh and its hours are the numbers that matter most for your winter bill. It is worth checking whether a different plan — or a different tariff structure — would cost your winter pattern less.

EnergySorted costs 16,000+ plans against your real usage, including your peak and off-peak split, with no retailer commission steering the result. Its bill forecasting can project the winter quarter from your trend so the big bill is expected, not a shock, and the Bill Health Score flags quickly whether your current plan is leaving money on the table.

Frequently asked questions

What is the cheapest way to heat a home in Australia?

A reverse-cycle air conditioner (heat pump) is usually the cheapest electric heating because it moves heat rather than generating it, producing several units of warmth per unit of electricity. Heating only the room you are in, at a sensible temperature, makes it cheaper still.

Are electric heaters expensive to run?

Bar, fan and oil column heaters convert electricity to heat one-for-one, so running them for hours is expensive compared with a reverse-cycle system. They are fine for short bursts in a small space but costly as a main heat source across a cold evening.

What temperature should I set my heater to?

Around 18-20°C is comfortable for living areas. Every degree higher increases running costs, so setting a sensible temperature and dressing warmly beats cranking the thermostat and paying for it.

Why is my winter bill so much higher than summer?

In cooler states heating runs for many hours across the coldest, and often most expensive, part of the day. That sustained load usually makes winter the peak bill of the year. Efficient heating and a well-matched tariff are the levers that reduce it.

Can switching plans reduce my winter heating cost?

It can reduce the rate side. If most of your heating lands in the time-of-use peak, a plan with a lower peak rate or a better-matched structure can cost your winter pattern less. EnergySorted compares the market on your real usage to find it, though it cannot undo the extra energy the cold weather demands.

See this on your own bill

EnergySorted costs every plan in your area against your actual usage.

General information only, current at the time of writing — not financial advice. Rebate schemes and rules change; always confirm details with your retailer or state government energy site.