For Commercial and Industrial (C&I) businesses, energy is one of the biggest cost lines and one of the most complex to manage. The Energy Charter’s Procurement Checklist is designed to help large energy users cut through the noise and make better, more confident decisions. We’ve broken it down into a practical guide for your business.
SME vs C&I: what’s the difference?
Before diving in, it helps to understand the difference between SME and C&I energy customers:
- SMEs (small and medium-sized enterprises): Typically use under 100,000 kWh of electricity each year or spend less than about $2,500 per month. Bills usually arrive quarterly.
- C&I (commercial & industrial) businesses: Use over 100,000 kWh annually or spend more than $2,500 a month. In NSW, VIC, QLD, and ACT, a C&I business is one consuming more than 100,000 kWh annually. In SA, the threshold is 160,000 kWh per year. Bills are always issued monthly.
- Key difference: Large C&I customers can qualify for the wholesale market, giving them access to forward purchasing and more competitive rates.
To figure out where you stand, simply check your latest energy bill.
With this context in mind, for commercial and industrial (C&I) businesses, energy is one of the biggest cost lines, and one of the most complex to manage. The Energy Charter’s Procurement Checklist is designed to help large energy users cut through the noise and make better, more confident decisions. We’ve broken it down into a practical guide for your business.
Step 1: Understand your Letter of Authority (LOA)
Before anything else, check who has permission to act on your behalf. A Letter of Authority allows brokers or consultants to access your usage data, bills, and contracts, sometimes even make purchasing decisions. Make sure you’re clear on what you’re signing and set limits where necessary.
Step 2: Get clarity on fees and commissions
Brokers and consultants may charge a flat fee, hourly rate, or a trailing commission built into your energy bills. Always ask:
• What is the total fee I’ll pay?
• How is it calculated?
• Will it appear on my bill, or is it embedded in my rates?
Transparency up front prevents nasty surprises later.
Step 3: Consider value-added services
Some brokers offer extras like metering support or demand management. These can add value but also cost. Check how fees are structured and whether the services deliver real benefits.
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Step 4: Explore innovative tariffs
Time-of-use, demand-based, and capacity tariffs can all create savings if managed properly. Ask your advisor whether these structures suit your operations and how they can reduce peak charges.
Step 5: Weigh up spot market exposure
Buying directly from the wholesale market can mean cheaper rates in low-demand periods, but also exposure to extreme spikes. If considering this path, ensure you have a risk management plan in place.
Step 6: Factor in green costs
Large energy users must account for renewable certificates and environmental charges. Work with your broker or consultant to understand how these flow into your bill and explore renewable strategies to offset costs.
Step 7: Review metering arrangements
You don’t have to stick with your retailer’s metering provider. Choosing your own can give you more control, better data access, and cost savings.
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Step 8: Assess solar, batteries, and PPAs
Solar and battery systems can hedge against price rises, while Power Purchase Agreements (PPAs) lock in renewable energy at scale. Before you commit, be clear on your long-term goals and ask the right financial and operational questions.
Step 9: Choose the right partner
Finally, the broker or consultant you work with matters. Look for transparency, industry experience, and alignment with the National Customer Code.
How Zembl can help
At Zembl, we make this checklist easy. Our team negotiates competitive long-term contracts, manages procurement risk, and identifies efficiency opportunities tailored to your business. We’re not here to sell you complexity, we’re here to simplify, secure, and save. Because in today’s volatile energy market, the right strategy is everything.
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