Electricity is one of the biggest controllable overheads for many Australian businesses. The challenge is that business energy pricing is not just about a cents per kWh rate, it is shaped by your tariff, your meter type, when you use power, network charges in your area, and the contract terms you agree to.
This guide explains how business electricity plans work in Australia, what to check before you sign, and the practical steps to compare offers properly. If you want an expert to do the comparison for you, Zembl can review your bill and benchmark your pricing with offers available from our retailer panel, then handle the switch if you approve.
How business electricity plans work in Australia
For most businesses connected to the National Electricity Market (NSW, ACT, QLD, VIC, SA, and TAS), your bill is made up of a few main components:
- Usage charges: what you pay per kWh, this can vary by tariff and time period.
- Daily supply charge: a fixed cost per day for staying connected to the grid.
- Network charges: regulated costs for poles, wires and local distribution, these vary by region and tariff and are usually a big part of total cost.
- Environmental scheme costs: costs tied to renewable schemes and certificates, usually passed through in pricing.
- Retail margin and fees: your retailer’s costs and margin for billing and customer service.
That is why comparing plans only by the headline rate can miss the real drivers of your total spend.
What makes a good business electricity plan?
A “good” plan is the one that fits your business’s load profile and risk preferences. In practice, the best plans tend to have:
- A tariff that matches how you operate: single rate, time of use, or demand based pricing that aligns to your trading hours and equipment.
- Competitive supply and usage charges, not just a promotional discount.
- Clear contract terms: end date, renewal process, fees, and what happens if you move site.
- Billing and payment options that suit cash flow, such as monthly billing or direct debit.
- Service support: especially important for multi site businesses, complex meters, or sites where outages or billing errors are costly.
Common business electricity tariff types
When comparing electricity for business, the tariff matters as much as the retailer.
Single rate (flat rate) tariff
You pay the same usage rate regardless of the time of day. This can suit smaller businesses with steady consumption or limited ability to shift load.
Time of use tariff
Usage rates vary across peak, shoulder and off peak periods. This can work well if you can shift energy intensive tasks away from peak times, for example running refrigeration defrost cycles, dishwashers, or charging equipment overnight.
Demand tariff (demand charges)
Some businesses pay a demand charge based on the highest level of power drawn during a set interval, often the highest 15 or 30 minute period in a billing cycle, in addition to usage charges. Demand tariffs are common for larger users and can be cost effective if peak load is managed, but expensive if peaks are uncontrolled.
Demand charges are one reason a plan can look cheap on a cents per kWh basis but still produce a high total bill.
Fixed vs variable business electricity plans
Most business customers will compare these two main contract styles:
- Fixed rate: your agreed usage rates (and sometimes supply charges) are locked for a set term, often 12 to 36 months.
- Variable rate: rates can change over time, depending on the retailer and market conditions.
Fixed pricing can support budgeting certainty. Variable pricing can offer flexibility but brings more exposure to price movements. The right choice depends on your cash flow, your ability to manage risk, and how long you plan to stay at the site.
If you want a deeper explanation, see our guide on fixed and variable energy plans for businesses.
What to check before you switch business electricity plans
Two offers that look similar can differ significantly once you read the fine print. Key items to review include:
- Contract term and end date: know when it finishes and when you should review again.
- Early termination fees: relevant if you might move premises or restructure.
- Automatic rollover clauses: some contracts roll onto higher rates if you do nothing.
- Pass through charges: clarify what is included vs passed through, especially for larger market contracts.
- Metering and tariff eligibility: not every plan is available for every meter type or network area.
- Billing frequency and fees: check payment fees, paper bill fees, and credit card surcharges.
How to compare business electricity plans properly
If you want a comparison that reflects real cost, use a like for like approach:
- Gather recent bills: at least one recent bill per site, and ideally 12 months if your usage is seasonal.
- Confirm your tariff: single rate, time of use, demand, or other network tariff structures.
- Map your usage pattern: when you use electricity is often as important as how much you use.
- Ask for comparable quotes: same term length, same start date assumptions, same inclusions.
- Compare total annual cost: not just usage rates, include supply and demand where applicable.
- Review contract terms: especially rollover and break fees.
For many SMEs, doing this manually is time consuming. Zembl’s process is designed to remove the admin: we review your bill, compare with available offers, explain the trade offs, then do the paperwork if you choose to proceed.
How Zembl helps you find a competitive business electricity plan
Zembl helps Australian businesses compare and switch electricity plans with less time and less hassle. Here is what the process typically looks like:
- Send a bill (or your account details): we use it to understand your current rates, tariff, and usage profile.
- Free review: a Zembl Energy Expert checks whether you are priced competitively.
- Comparison across available offers: we benchmark options from our retailer panel for eligible sites.
- Clear recommendation: we walk you through the result so you can make an informed decision.
- Switching support: if you approve, we handle the switch. There is no interruption to your electricity supply.
For multi site businesses, we can also help align contract end dates, consolidate billing where available, and support ongoing reviews.
Frequently asked questions
How often should a business review its electricity plan?
Many businesses review pricing at least annually, and it is smart to start 60 to 120 days before your contract end date. This gives you enough time to compare offers and avoid rolling onto uncompetitive rates.
Will my power go off if I switch retailers?
No. Your local network keeps the electricity flowing. Switching retailers is a billing and contract change, not a physical change to your connection.
Can small businesses access better rates than standing offers?
Often yes. In competitive markets, retailers may offer business market plans with sharper rates than default or standing arrangements. Eligibility depends on location, meter type and consumption, which is why bill based comparisons are the most reliable approach.
What information does Zembl need to compare plans?
A recent bill is usually enough. It shows your meter identifier, tariff, usage, and current rates so we can run an accurate comparison.
Next steps
If you want to compare options quickly, start with a free bill review and we will tell you whether your current business electricity plan is competitive, and what alternatives may be available.
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