Every business leader knows the end of the year is chaos. Deadlines pile up, priorities compete, and energy contracts slip down the list. Here is the reality. Leaving your renewal to the last minute can cost you thousands.
The year end crunch
November and December are peak months for expiring commercial energy contracts. These contracts are for Commercial & Industrial (C&I) businesses, typically those using more than 100,000 kWh of electricity each year or spending over $3,000 a month.
Approximately 60%* of C&I customers have contracts expiring in this window, which creates a surge in demand. That means fewer offers and less flexibility form retailers. Wait too long and you risk missing competitive deals or being rolled onto expensive default rates.
Luke Pearce, Zembl Commercial and Industrial Acquisition Manager, says: "At the end of every calendar year the market sees a surge in C&I contract renewals, which puts pressure on retailers' capacity and reduces the flexibility of offers available. Securing your next agreement early ensures you avoid nasty default rates and gives you greater choice and negotiating power for your next contract."
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What happens if you do not act
Do nothing and you could find yourself stuck on default market rates, often well above your previous contract. That is money straight off your bottom line. In December, retailers can also afford to be choosy. Expect fewer favourable terms and slower turnarounds.
Default rates also come with no leverage. You pay more without the benefits that a negotiated plan can include, such as fixed rates, tailored contract lengths, or greener energy options. For businesses already managing inflation and higher operating costs, that extra spend hurts.
Timing is everything
Most retailers stop taking new offers after the second week of December because transfers by 1 January cannot be guaranteed. The smart move is to act between early November and early December. This gives you room to compare options and negotiate from a position of strength.
Renewing early also opens strategic choices, such as locking in multi-year terms, trialling flexible tariffs, or exploring renewable backed contracts. These options narrow once the market tightens.
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How to prepare
Get ahead by gathering usage data, past rates, and any changes in your energy needs. Walking into renewal discussions with the right information helps retailers tailor offers that actually fit your business.
Think beyond price. Decide what matters most to you: cost certainty, sustainability commitments, or flexibility in contract length. Clear priorities keep negotiations on track.
Why partner with Zembl
With Zembl you get more than procurement. You get:
- An obligation free tender process
- Competitive offers tailored to your business
- Fast turnarounds, often in as little as four business days
- Insights to spot efficiency opportunities
- Support for the life of your contract
Our team negotiates daily with Australia’s largest energy retailers. We know the year end crunch, and we know how to secure better outcomes for your business.
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Act now
The year end energy rush is real, but it does not have to catch you out. Acting early can save you thousands, protect your margins, and free up headspace so you finish the year strong.
Get in touch with Zembl today and let us do the heavy lifting so you can lock in a deal that works for your business before it is too late.
*Based on historical Zembl commercial energy customer contracts.
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