Consumer groups have called the massive gap between the best and worst power bill offers 'scary', and say many households are spending more than $1600 than they need to because they have been misled to believe they are on a good deal.

In its annual energy survey of nearly 4000 households, consumer comparison group Canstar said the difference between the cheapest market offer and the most expensive standing offer varied considerably for most states across the east coast’s national electricity market.

Some Australian households could be paying more than double the average power bill price. Credit:Mark Piovesan

Households on the east coast pay an average $1636 per year, according to the Australian Competition and Consumer Commission.

Canstar spokesman Simon Downes said while power bills were falling, “it is scary to think households are spending $1600 or more than they need to”.