Choosing the right energy contract can make a meaningful difference to your operating costs. In Australia, business energy plans can vary by state, distributor network, meter type and usage profile, which is why the “cheapest rate” on a headline offer is not always the best deal for your site.
This guide explains how business energy plans work, what to check on your bill, and how to compare offers confidently. If you want a fast comparison, Zembl can review a recent bill and show you competitive options from our panel, then handle the switch if you approve.
What is a business energy plan?
A business energy plan is the contract that sets how your retailer charges you for electricity and or gas. It usually includes:
- Usage charges (cents per kWh for electricity, cents per MJ for gas)
- Supply or service charges (a daily fixed charge)
- Your tariff structure (for example single rate or time of use)
- Contract term and conditions (benefit period, fees, notice periods)
- Any renewable energy or carbon claims (for example GreenPower or offsets)
Most small and medium businesses buy electricity through a retailer, while larger commercial and industrial sites may access more bespoke procurement approaches. If you are unsure which category you fall into, your bill and metering are a good place to start.
Market offers vs standing offers for businesses
Australian retailers generally sell energy under two broad offer types:
Standing offer (default contract)
A standing offer is the default contract a retailer must make available. If you have not actively chosen an offer, or your previous plan ended and rolled over, you may be on a standing offer. Standing offers can be convenient but are often not the most competitive for ongoing costs.
Market offer (negotiated or advertised contract)
A market offer is a plan with rates and conditions set by the retailer. Market offers may include a benefit period (for example an introductory discount), a fixed rate period, or other features. Rates can change at the end of a benefit period, and some plans include fees, so it is important to compare the full cost, not just a headline discount.
How to compare business energy plans properly
When comparing offers, focus on total expected cost and the contract conditions that affect your risk.
1) Your tariff and meter type
The tariff determines how your usage is priced. Common electricity tariff types for businesses include:
- Single rate: the same usage rate at all times
- Time of use: different peak, shoulder and off peak rates
- Demand tariffs: charges based on your highest demand in a period, common for larger sites
Your meter type and your distributor network influence what tariffs are available. If you have a smart meter, you may have access to more time based options, but time of use is not automatically cheaper. It depends on when your business uses electricity.
2) Usage charges and daily supply charge
Two plans can look similar on usage rate but differ heavily on the daily supply charge, especially for low usage sites. For multi site businesses, supply charges can add up quickly across locations.
3) Fixed vs variable rates
Some business energy plans lock in rates for a period, while others are variable and can move with retailer price changes. Fixed pricing can suit businesses that want budget certainty, while variable pricing can suit businesses comfortable with price movement and shorter commitment. For a deeper comparison, see our guide on fixed and variable options: Fixed vs. variable rate energy plans.
4) Contract term, benefit period and review dates
Check the contract length and whether discounts or incentives end after 12 to 24 months. A common issue is rolling onto higher rates after a benefit period ends. A practical approach is to diarise a review well before renewal.
5) Fees and conditions
Depending on your plan and customer classification, you may see fees such as:
- Early termination fees
- Paper bill fees
- Credit card payment fees
- Move out or disconnection charges
Also check billing frequency, payment terms and whether the plan requires direct debit.
6) Network charges and your location
A large portion of your power bill can be network charges set by your distribution network, not your retailer. While you cannot negotiate network charges directly in most cases, choosing the right tariff and plan structure can help you avoid paying for a mismatch between your operations and the tariff design.
What to check on your current business energy bill
If you have a recent bill handy, these items help you compare accurately:
- Your NMI (electricity) or MIRN (gas)
- Your current tariff name, and whether it is time of use, demand, or single rate
- Usage for the billing period, and your peak usage times if available
- Supply charge and usage rates
- Contract end date and any benefit period end date
If you want a quick read on whether you are likely overpaying, Zembl can review your bill and compare it against current market options: Compare business energy.
Are green energy plans worth it for businesses?
Many retailers offer plans that include renewable energy options. In Australia, “green” can mean different things, so it is important to confirm what is actually included:
- GreenPower: a government accredited renewable energy product you can add to your plan
- Carbon offsets: the retailer offsets emissions associated with your usage
- Renewable matched claims: claims based on certificates or corporate renewable purchasing
If your business has on site solar, you may also receive a feed in tariff for exported electricity. Feed in tariffs and eligibility vary by retailer and location, and the export rate is only part of the picture. The bigger savings usually come from using more of your solar generation on site.
Business energy plans for small businesses vs larger sites
Small businesses and SMEs
If you are a small business, you will typically be comparing retail market offers and optimising tariff fit. For more detail on typical SME usage and practical ways to reduce costs, see: Small business electricity.
Commercial and industrial sites
If your energy spend is significant, procurement can involve a tender process, more complex tariff analysis and ongoing contract management. Zembl supports larger sites with procurement plus energy intelligence and efficiency recommendations: Commercial energy.
How switching business energy plans works with Zembl
Switching retailers is usually straightforward and your supply is not interrupted because the same poles, wires and pipelines continue to deliver energy.
- Send a recent bill: it helps us match your meter and tariff details
- We compare options: across our panel of leading retailers, based on your usage and location
- You choose: we explain the trade offs like contract term, risk and any fees
- We handle the switch: including the paperwork and retailer notifications, if you approve
If you want to build a habit of regular reviews, our team can help you time your check in around renewals. For the reasons it matters, see: Why you should review your business energy plan.
Frequently asked questions
Which is better for a business, a standing offer or a market offer?
In many cases, a market offer is more competitive than a standing offer, but the best plan depends on your tariff, usage profile and the contract conditions. Always compare total cost plus fees and benefit periods.
Can I get a fixed rate for business electricity?
Some retailers offer fixed pricing for a period, particularly in market contracts. Fixed rates can help with budgeting, but it is important to check the term, exit conditions and what happens at renewal.
Will my power be cut off if I switch?
No. Switching retailers does not interrupt supply, because the distributor continues to deliver electricity through the same network infrastructure.
How often should a business review its energy plan?
A useful rule of thumb is to review at least annually, and also whenever your business changes hours, equipment, premises or the number of sites. Reviewing ahead of renewal reduces the chance of rolling onto a higher default rate.
Get a fast comparison of business energy plans
If you want to know whether your current plan is competitive, Zembl can complete a fast comparison using a recent bill and show you available options. Start here: Talk to a business energy expert.
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