As of the most recent data, AGL Energy holds the title for the Australian energy company with the most customers, servicing over 4 million electricity and gas accounts across the nation.

But why does one player dominate in such a crowded field? And what can we learn about consumer behaviour, market strategy, and trust from this? Let’s break it down.

Why does AGL have the most customers in Australia?

AGL Energy isn’t just the biggest by chance—it’s a mix of brand legacy, behavioural inertia, and smart market positioning.

1. First-mover advantage (Consistency Bias in play)

AGL has been part of the Australian energy landscape since the 1800s, originally lighting up Sydney’s streets with gas. That kind of heritage matters. People stick with names they know—especially in “low-engagement” industries like energy where switching feels like a hassle.

This is the commitment and consistency principle at work: once someone chooses a provider, especially one they grew up with or inherited from previous owners, they tend to stick.

2. Mass-market coverage, not niche segmentation

Unlike newer entrants that position themselves as “green” or “budget” retailers, AGL has done both—offering sustainability plans and budget options. This wide appeal means they win customers across income levels and ideologies.

They’re also available in most major markets: NSW, VIC, QLD, and SA. If you’ve moved around the country, chances are you’ve been with them at some point.

Who else ranks high in customer numbers?

While AGL leads, other players are not far behind. Here’s how the top five stack up by estimated residential and small business accounts:

(Source: Australian Energy Regulator, 2024 Retail Statistics)

These providers dominate the east coast—where the majority of Australians live—and they’re often the default options when setting up energy in a new home.

What influences Australian customers to choose (or stay with) a provider?

1. Loss aversion > saving gains

Most people don’t switch because they’re afraid of the unknown. Even if another provider promises savings, the risk of a billing issue, a service disruption, or just having to sit on hold for 45 minutes feels worse than overpaying a little.

This is loss aversion bias in full swing: we hate losing more than we like winning.

2. Brand familiarity

Big providers spend big dollars on brand awareness. That means more exposure on TV, radio, billboards—especially during footy season. And if everyone else is with AGL or Origin? That’s social proof.

One survey by Finder showed that over 65% of Australians couldn’t confidently name more than two energy retailers. This brand blindness favours the big players.

Are more customers always better?

Not necessarily. While customer volume helps with revenue and negotiating power, it also comes with:

• More customer service demand (and complaints if things go wrong)

• Higher regulatory scrutiny

• Slower innovation cycles

Some smaller players like Amber Electric and OVO Energy are gaining traction by offering smarter tech, renewable-first options, or wholesale pricing models—but they lack the scale (and the budget) to threaten the top three… yet.

So, where do electricity brokers fit into this?

In this increasingly crowded space, many Aussies now turn to electricity brokers—services or consultants that help businesses and households compare, switch, or negotiate better energy deals.

For businesses especially, this can mean thousands saved on bulk-use contracts. Instead of navigating complex tariffs and demand charges, they rely on brokers who understand the full supply chain—from generators to retailers.

And if you’re wondering how these players connect behind the scenes, this breakdown of the energy supply chain explains it well.

What trends could shift the customer leaderboard?

• Decentralisation and solar adoption: More households are installing panels and home batteries, reducing their grid reliance—and potentially their need for traditional retailers.

• Regulatory changes: The AER’s push for greater transparency in pricing and contracts could level the playing field for smaller retailers.

• Tech-first disruptors: Players like Powershop and ReAmped Energy are leaning into app-based account management, gamified usage insights, and real-time wholesale pricing.

FAQ

Who owns AGL Energy?
AGL is an ASX-listed company with institutional and retail investors. It has faced pressure from climate activists and shareholders to accelerate its exit from coal.

How many energy retailers are there in Australia?
Over 30 licensed retailers operate across the NEM (National Electricity Market), though only a handful hold significant market share.

Is it easy to switch providers?
Yes, but perception says otherwise. Most people assume it’s time-consuming or risky—despite consumer protections that ensure continuity of service.

Australia’s energy landscape might seem stable, but underneath, it’s shifting. Customer loyalty, pricing, renewables, and trust are all pulling in different directions. The biggest player might still be AGL—but how long they hold that spot will depend on how quickly they can adapt to a smarter, greener, and more fragmented market.

And if you’re a business trying to cut through all the noise, don’t underestimate the role that savvy electricity brokers can play in saving you serious coin.