Comparing business electricity is one of the fastest ways to reduce operating costs without changing how you run your business. The challenge is that Australian business electricity pricing is rarely as simple as picking the lowest cents per kWh. To get a true comparison, you need to consider your tariff type, daily supply charge, any demand charges, and the contract terms that can change what you pay over the year.
This guide explains how business electricity comparison works in Australia, what to check on your bill, how to compare offers on a like-for-like basis, and when to use expert help to avoid expensive rollover pricing.
What “business electricity comparison” really means in Australia
In most National Electricity Market (NEM) regions, businesses can choose between multiple electricity retailers. That includes NSW, VIC, QLD, SA, the ACT and parts of Tasmania. Retail choice can be more limited in WA, the NT, embedded networks, and some regional areas.
When businesses search for business electricity comparison, they are usually trying to do one of these things:
- Reduce the total annual electricity cost, not just the headline rate
- Move to a tariff structure that better suits operating hours
- Lock in budget certainty with a fixed price contract
- Avoid auto-rollovers onto higher rates at contract end
- Standardise energy contracts across multiple sites
What to gather before you compare business electricity plans
You will get better quotes and a more accurate comparison if you start with real bill data. At minimum, have your most recent bill. If your business is seasonal, also gather bills from another season or the last 12 months.
Look for these items on your bill:
- NMI (National Metering Identifier), the identifier for your electricity meter in NEM states
- Tariff type, for example single rate, time of use, demand based, controlled load
- Usage (kWh) and, if time of use, the breakdown between peak, shoulder and off-peak
- Demand (kW or kVA) if your site is demand billed
- Daily supply charge (c/day)
- Contract end date and any renewal or rollover conditions
If you manage more than one location, collect the above for each site. Even sites close together can sit in different network areas and have different tariffs, which changes the result of the same retailer offer.
How business electricity pricing is built up
Understanding the building blocks of your bill makes comparisons far easier.
Usage charges (c/kWh)
This is the variable part of your bill. It may be billed as:
- Single rate, one rate for all consumption
- Time of use, different rates by time window
- Demand based, usage plus a demand component linked to your peak interval demand
Daily supply charge (c/day)
This is the fixed charge for staying connected. A low usage rate can look great, but a high supply charge can increase total cost, particularly for low-usage sites like small offices, seasonal venues, or backup premises.
Demand charges ($/kW or $/kVA)
Demand charges are common for medium and larger businesses, but they can also appear for smaller sites with certain metering and network tariff setups. Demand is typically calculated from your highest 15 or 30 minute interval within a billing period, sometimes within a specific time window.
Demand charges can dominate bills for businesses with sharp spikes in load, such as refrigeration, HVAC, commercial kitchens, workshops, compressed air, and manufacturing equipment.
Network and metering costs
Network charges pay for poles, wires and metering infrastructure in your distribution area. These charges are regulated, but your assigned network tariff can materially change your costs depending on your load profile and meter type.
Retail costs and environmental scheme costs
Retailers add a margin and may incorporate environmental scheme costs into their rates. You do not always see these as separate line items, but they affect the prices you are offered.
Tariff types you should understand before you compare
Single rate tariffs
Single rate pricing can suit businesses with steady usage across the day or businesses that cannot shift load away from higher-priced periods. It is simpler to budget for and easier to compare.
Time of use (TOU) tariffs
TOU pricing charges different rates depending on when you use electricity. It can work well if you can shift discretionary load into cheaper times, for example:
- running dishwashers, laundry or batch processes later at night
- charging forklifts or EVs overnight
- pre-cooling or adjusting HVAC schedules
Peak and off-peak windows vary by state and distribution network, so always compare TOU offers using your actual operating hours and your bill data.
Demand tariffs
Demand tariffs add an additional charge based on your maximum demand. If your bill has demand, comparing only the c/kWh rate is one of the biggest mistakes you can make. Two deals with similar usage rates can produce very different outcomes once demand is applied.
How to compare business electricity offers properly (step by step)
Step 1: Compare total annual cost, not just cents per kWh
The cleanest comparison is a modelled annual cost that includes supply charges, usage charges and demand charges (where applicable). If you have interval data, this becomes far more accurate for TOU and demand-based sites.
Step 2: Check whether the tariff structure fits your operating hours
Look at when your business uses power, not just how much. A plan can be cheap on average but expensive for your specific load profile. Examples:
- Hospitality venues may benefit from stronger shoulder or off-peak pricing if loads extend into evenings.
- Warehousing and logistics can be exposed to morning peak windows depending on the network.
- Manufacturing can sometimes reduce demand outcomes by sequencing equipment start-ups and avoiding simultaneous peaks.
Step 3: Compare contract terms that change your real cost
When comparing plans, check the terms that can add cost or risk:
- Contract length (12, 24, 36 months) and whether pricing changes during the term
- Exit fees and move-out provisions if you change premises
- Rollover clauses, what happens at the end of the benefit period
- Fees, including card payment fees, late fees and billing fees
- Discount conditions, whether they apply to usage only or usage plus supply
Step 4: Confirm what you are actually being quoted
Retailers can quote in different ways. Make sure you are comparing like-for-like:
- same tariff type
- same contract term
- same assumptions about annual usage
- clear treatment of demand (if applicable)
- clear inclusions and exclusions
Step 5: Start early enough to avoid expensive rollovers
As a rule, begin the comparison 60 to 120 days before your contract end date. That gives you time to gather bills, model costs, review terms, and switch before you land on higher default pricing.
Common business electricity comparison mistakes
- Comparing only the usage rate and ignoring supply and demand charges.
- Using the wrong usage profile by comparing without a bill, especially for TOU sites.
- Missing demand window details, such as peak-only demand versus all-day demand.
- Assuming one plan fits every site in a multi-site business.
- Waiting until after contract end and rolling over onto higher rates.
Government comparison tools and where they fit
The Australian Government’s Energy Made Easy website can be a useful starting point for small businesses in participating states and territories. It is independent and free.
However, government tools may not capture the full nuance for demand tariffs, negotiated offers, multi-site portfolios, or businesses that need precise modelling. If your bills include demand charges, multiple sites, or complex tariff structures, a tailored comparison is usually more accurate.
What “best value” looks like for different business types
Small businesses (cafes, retail, offices, trades)
For many small businesses, the best value outcome usually comes from:
- competitive supply and usage charges
- a tariff that matches opening hours
- clear terms and minimal hidden fees
- avoiding rollover pricing at renewal
Medium and larger users (manufacturing, cold storage, large hospitality, multi-site groups)
Larger users often need a deeper comparison because of demand tariffs and more complex network structures. The best value outcome is usually driven by:
- accurate modelling using interval data
- network tariff suitability checks
- competitive tendering and negotiation
- contract structures that match risk appetite and budgeting needs
How Zembl can help
If you want to reduce electricity costs without spending hours calling retailers, Zembl can compare business electricity using your real bill data, then handle the switching process if you choose to proceed.
- For a quick overview of the process, see Zembl business energy saving services.
- If you want help comparing electricity offers across retailers, start with compare business electricity.
- If you also buy gas, a combined review can help align contracts and reduce admin, see gas and electricity quotes.
- For a broader explainer on how comparisons work, see electricity compare.
- If you want a deeper checklist for bill components and tariffs, see business electricity price comparison.
Frequently asked questions
Does switching electricity retailers interrupt supply?
No. Your physical supply continues through the same network infrastructure. Switching changes who bills you for electricity.
How often should a business compare electricity plans?
At least annually, and always several months before your contract ends. You should also compare after major changes like adding equipment, changing operating hours, installing solar, or opening a new site.
Is the cheapest rate always the best deal?
Not necessarily. The best deal is the plan with the lowest modelled total annual cost for your usage profile, with terms you are comfortable with. A low c/kWh rate can be offset by higher supply charges or demand charges.
What if my business has multiple sites?
Multi-site comparisons are often where the biggest gains are, but they require site-by-site modelling. Each location can have different tariffs, usage patterns and contract end dates. The goal is to compare accurately and then simplify renewals by aligning terms where possible.
Next step: run a business electricity comparison using your bill
If you want to know whether your current plan is competitive, the fastest next step is to use a real bill and compare total cost properly. If you would like help, Zembl can review your bill, benchmark your current pricing, and show you competitive options available for your location and tariff type.
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