Business electricity price comparison: Compare rates and cut costs

Making a business electricity price comparison before you renew a contract is one of the simplest ways to reduce operating costs without changing how you run your business. In Australia, electricity pricing can vary significantly by state, network area, tariff type, meter type and contract terms. That means the cheapest cents per kWh on a headline rate is not always the lowest total bill.

This guide explains what to compare (and what to ignore), how business electricity pricing works in Australia, and how Zembl can help you benchmark your current plan against competitive market offers.

What you are really paying for on a business electricity bill

Most business electricity bills include a mix of charges. If you only compare the usage rate (c/kWh), you can miss the parts of the bill that drive the real annual cost.

Usage charges (cents per kWh)

This is the cost of the energy you consume. Depending on your tariff, usage may be charged as:

Single rate: one rate for all usage
Time of use (TOU): different rates for peak, shoulder and off-peak
Demand-based: a usage rate plus a demand charge linked to your highest interval demand

Daily supply charge (cents per day)

This is a fixed daily fee to stay connected to the grid. It can vary by distributor and meter type and it can materially change your annual cost, especially for sites with low usage (for example, offices or seasonal businesses).

Network charges and tariff structure

Network costs pay for poles, wires and local metering infrastructure. For many larger business connections, network charges can be a major share of the bill and can be heavily influenced by your network tariff. Network tariffs are regulated and overseen by the Australian Energy Regulator (AER), but the tariff you are assigned can change depending on your load profile and metering.

If you suspect your tariff no longer suits your operations, you can learn more about a review process here: What is a network tariff review?

Environmental scheme costs and retailer margin

Your bill can include environmental scheme costs (for example, certificate schemes) and the retailer’s margin and fees. You do not always see these as separate line items, but they are embedded in rates.

Average electricity price per kWh in Australia (and why it is not a great benchmark)

Many businesses search for the “average electricity price per kWh” and try to benchmark themselves that way. In practice, averages are not very useful because:

business rates differ from residential rates
the supply charge can shift the total cost materially
tariff type changes what “per kWh” even means (single rate vs TOU vs demand)
pricing varies by network region, not just by state

A better approach is to compare offers using your actual annual usage and interval profile (where available), then model total annual cost including supply, usage and demand components.

Tariffs to understand before you compare business electricity prices

Single rate tariffs

Single rate can suit businesses with steady usage across the day, or those that cannot shift load away from peak periods. It is simple to understand and simple to budget for.

Time of use tariffs

Time of use pricing charges different rates at different times. It can work well for businesses that can shift discretionary load to off-peak or shoulder periods, for example:

running dishwashers, laundry, or prep equipment later in the evening
charging forklifts or EVs overnight
pre-cooling or adjusting HVAC schedules

When comparing TOU plans, check the actual peak windows for your network area, they are not identical across states and distributors.

Demand tariffs

Demand tariffs add a charge based on your highest demand in a set interval (often 30 minutes). Businesses with short, sharp spikes in electricity use can see demand charges dominate their bills even if total kWh is not high.

If you operate refrigeration, HVAC, compressors, commercial kitchens, workshops or manufacturing equipment, demand charges are a key item to compare. Small operational changes can sometimes reduce peak demand, but selecting the right tariff and contract structure matters just as much.

Fixed vs variable business electricity plans

Fixed rate contracts

Fixed rates can provide budget certainty over the contract term. They can be useful when you want predictable pricing and simpler forecasting, particularly in volatile markets.

Variable rate plans

Variable rates can move over time. They may suit businesses that want flexibility, but they can also expose you to price movements. If you are on a variable plan by default, it is worth checking whether you are paying a premium versus current market offers.

What to compare in a business electricity price comparison checklist

Use this checklist to compare offers on a like-for-like basis:

Supply charge (c/day)
Usage rates (single rate or TOU peak, shoulder and off-peak)
Demand charges (if applicable), including the measurement window and calculation method
Contract term (12, 24, 36 months), and whether rates change during the term
Exit fees and move-out provisions
Billing and payment fees, including merchant fees for card payments
Discounts, and whether they apply to usage only or usage plus supply
Renewable options, if sustainability goals matter to your business
Service model, for example, dedicated account management for multi-site portfolios

Small business vs larger commercial sites, why comparisons differ

Small business customers

For cafes, retail stores, offices and trades, value usually comes from a clear rate structure, competitive supply and usage charges, and avoiding nasty surprises at rollover. If you want a broader view of small business options, see: Electricity small business guide.

Medium and large users

For higher-usage organisations (including manufacturing, cold storage, large hospitality and multi-site groups), you may have demand tariffs, more complex network charges and custom pricing opportunities. In these cases, total cost modelling and tendering can be the difference between an average deal and a strong one.

How to compare business electricity prices in Australia: a practical step-by-step process

1. Gather the right information

At minimum, have a recent bill. Ideally, have 12 months of billing history (or interval data) if your usage is seasonal or you are on a demand tariff. Key details include your NMI, current rates, tariff, and contract end date.

2. Confirm your tariff and meter type

Tariff suitability can change when your operations change, for example new equipment, longer operating hours, or solar installation. A quick check can prevent you from comparing plans that do not fit your load profile.

3. Compare total annual cost, not just c/kWh

Ask for a modelled annual cost based on your usage. This is where supply charges and demand charges are properly accounted for.

4. Review contract terms before you decide

Two offers can look similar in price but be very different in risk and flexibility. Pay particular attention to rollover clauses and exit conditions.

Government comparison tools and when they help

For many small businesses in NSW, QLD, SA, TAS and the ACT, the Australian Government’s Energy Made Easy website can help you compare generally available plans. It is a useful starting point, but it will not always capture the nuances of demand tariffs, negotiated offers, multi-site portfolios, or the best timing to go to market.

How Zembl helps with business electricity price comparisons

Zembl streamlines the comparison process for Australian businesses. We review your bill, benchmark your current pricing, and compare offers across our panel of retailers to identify competitive options. If you choose to proceed, we handle the paperwork and switching process.

Free bill review for eligible businesses
Fast comparison, including supply, usage and tariff considerations
Support for SMEs and larger organisations, including multi-site portfolios

If you want to explore adjacent options, these pages may help:

Frequently asked questions

How often should I compare business electricity prices?

As a rule, start 60 to 120 days before your contract end date. Also review pricing after major operational changes (new equipment, extended hours, additional sites) because your load profile and tariff suitability can shift.

Will switching affect my electricity supply?

No. Switching retailers changes who bills you, not the physical supply, which continues through the same network infrastructure.

What is the biggest mistake businesses make when comparing electricity rates?

Comparing only the cents per kWh and ignoring supply charges, demand charges and tariff suitability. The best value offer is the one with the lowest modelled annual cost for your business, with terms you are comfortable with.

Can a broker help if I have multiple sites?

Yes. Multi-site comparisons often require standardising contract terms, aligning end dates, and modelling each site’s tariff and usage profile separately. Zembl can run the process and present a clear, comparable outcome across your portfolio.

Next step: get a free business electricity comparison

If you would like to understand whether your current electricity plan is competitive, Zembl can review your bill and show you options that better fit your tariff and usage profile. You can start with our business electricity comparison service.