Abstract: This paper builds on existing literature on household energy consumption and test effects of a range of factors associated with household energy use. It aims to bring out how household energy consumption varies between and Adelaide and Melbourne and identify determinants of household energy consumption. It is conceptualised that household energy consumption is determined by macro and micro environment variables, as well as household attributes and housing stock characteristics. Residential sector in urban areas is the third largest sector of final energy use in Australia and it accounts for about 12% of the country’s total final energy consumption. Data were collected from a survey of 200 sample households and modelled according to a conceptual framework that takes into account household, house stock, and build environment factors. The findings contribute to understanding of the factors that shape residential energy consumption, and have policy implications in targeting household energy savings.