Electricity prices in Australia are set to rise this winter, affecting millions of households amid ongoing cost-of-living challenges.

It's important to note that the announced price hikes do not account for the federal government's $75 subsidy, which will be automatically applied to energy bills.

In Sydney, electricity prices will increase by 8.6%, costing the average family an additional $145, bringing their total annual bill to $1,830.

Melbourne will see a price rise of 6.2%, adding $83 to annual bills, which will average out to $1,421.

Adelaide households will face an average increase of $70, leading to total annual costs of $2,247.

Canstar's data insights director, Sally Tindall, recommends that consumers compare their reference prices with market offers to find better deals, despite the inevitability of price increases in some states.

To help alleviate the burden of rising energy costs, every household will receive two quarterly payments of $75 under the Government Energy Bill Relief Fund.

The Australian Energy Regulator finalized the Default Market Offering in May, which established maximum price caps for households on default energy plans.

Canberra households will experience the largest increase, with electricity prices rising by 8.5%, resulting in an additional $191 and an average annual cost of $2,436.

In Brisbane, prices will increase by 3.7%, or $72, resulting in an average annual cost of $2,019.