This paper discusses the role for urban planning in managing the energy demands of living in Australian cities. Current Australian metropolitan plans all contain sustainability ambitions. Tracking progress and developing strategies to move towards these ambitions requires empirical understanding of urban resource demands. This paper focuses specifically on the energy demands of households, and whether they are affected by urban consolidation. Existing empirical evidence about the influence of urban consolidation on household energy demand is reviewed. The review shows that evidence is incomplete and inconsistent. Improved understanding is needed. However, it is possible to conclude that dispersed, incremental urban consolidation is unlikely to reduce household energy demand. To achieve its sustainability goals, planning must be well informed, actively encourage the development of residential areas that are conducive to energy-efficient lifestyles, and look beyond physical influences on energy demand for policy solutions.