Commercial electricity rates can look simple on the surface, just cents per kWh, but most Australian businesses are charged through a mix of energy, network and metering components. If you only compare the headline rate, you can easily move to a contract that looks cheaper but costs more once demand charges, time-of-use windows, and fees are included.
This guide explains how business electricity pricing works in Australia, what drives commercial electricity rates, and a practical process for comparing offers accurately. If you want a fast comparison based on your actual bill and interval data, Zembl can run an obligation-free review and handle the switch if you decide to proceed.
What are commercial electricity rates in Australia?
Commercial electricity rates are the prices a business pays for electricity supply. In most cases, your bill includes:
- Usage charges: energy consumed, usually in cents per kWh.
- Demand charges: based on your highest demand (kW or kVA) over a defined window, common for larger sites and many small businesses on demand tariffs.
- Supply charges: daily fixed charges, sometimes split into multiple components.
- Network charges: transmission and distribution costs, set by regulated networks and passed through by retailers.
- Metering charges: costs for the meter and data services, particularly for sites with interval (smart) meters.
- Environmental costs: retailer costs associated with schemes such as the Renewable Energy Target, typically bundled into overall pricing.
Because different businesses use power at different times, and because network tariffs vary by location and meter type, there is no single “standard” commercial electricity rate that applies to everyone.
What drives commercial electricity rates?
Several factors shape what a retailer can offer your business:
Location and network area
Your distribution network (for example, Ausgrid, Endeavour, Energex, Powercor, SA Power Networks) has a major impact on costs. Network tariffs are regulated and can differ significantly by region, even within the same state.
Tariff type and metering
Your tariff structure often matters more than your cents per kWh. Common structures include:
- Flat / single rate: one usage rate regardless of time.
- Time-of-use (TOU): different rates for peak, shoulder and off-peak periods.
- Demand tariffs: charges based on your highest demand during a set time window.
Many sites with smart meters are moved to TOU or demand-based tariffs by their network, which can materially change bills if your load is concentrated in peak periods.
Load profile (when and how you use energy)
Two businesses with the same annual kWh can pay very different amounts depending on whether they use most energy during daytime peaks, evenings, or overnight. For example, refrigeration-heavy venues with consistent load can behave very differently to offices that peak at midday or hospitality sites that peak in the evening.
Wholesale market conditions
Retailers price contracts based on expected wholesale costs and risk. Fixed-price contracts include a risk premium because the retailer is taking on future wholesale price uncertainty on your behalf.
Contract structure and term
Commercial contracts can be offered as:
- Fixed rate: stable usage rates for the contract term.
- Variable rate: rates can change, sometimes with notice periods.
- Hybrid arrangements: common in larger commercial and industrial (C&I) procurement, where some exposure is hedged and some may float.
Term length, credit requirements, and your switching timeline can all affect the final price.
How to compare commercial electricity rates properly
To avoid comparing “apples with oranges”, use the process below.
1) Start with your latest bill and, if available, interval data
Pull a recent bill and note your:
- National Meter Identifier (NMI)
- Current tariff name and network tariff (if shown)
- Peak demand (kW or kVA), if billed
- Annual usage estimate or last 12 months kWh
- Billing frequency (monthly or quarterly)
If your site has a smart meter, interval data is the best way to test how different TOU and demand windows will impact costs.
2) Compare the total annual cost, not just cents per kWh
Ask for a like-for-like comparison that includes all components: supply charges, usage, demand charges, metering and any fees. A lower usage rate can be offset by higher daily charges or a demand component that hits you every month.
3) Check the tariff assumptions
If an offer assumes you are on a different network tariff, you may not realise the savings, or the bill could increase. A proper comparison should confirm whether a tariff change is required, and whether it is feasible for your meter and network.
4) Review contract terms and fees
Before switching, confirm:
- Contract length and any early exit fees
- Whether prices are fixed or can change
- Payment terms and credit requirements
- Any pass-through fees (for example, metering, network variations, or regulatory changes)
- Billing and account management options, especially for multi-site businesses
5) Consider demand management and load shifting opportunities
If you are on TOU or demand tariffs, small operational changes can reduce bills without reducing output. Examples include:
- Staggering start-up of large motors and HVAC
- Pre-cooling or pre-heating outside peak windows
- Optimising refrigeration defrost cycles
- Using timers for non-essential loads
Commercial electricity rates by business size
Retailers generally split the market into:
- Small business (SME): typically lower annual consumption, often on standard market offers, billed quarterly in many cases.
- Commercial and industrial (C&I): higher usage, often billed monthly, may be eligible for more bespoke pricing and procurement processes.
As your usage increases, demand charges, network tariff optimisation and procurement strategy tend to have a bigger impact than small differences in usage rates.
How Zembl helps you compare and secure competitive business electricity pricing
Zembl helps Australian businesses compare electricity offers based on their actual bill, usage patterns and goals. Depending on your size and complexity, you may work with an Energy Expert (SME) or an Energy Broker / Consultant (larger commercial).
- Bill-based comparison: we compare your current pricing against offers available from our panel of retailers.
- Tariff and cost-to-serve checks: we look beyond headline rates to identify where costs are really coming from.
- Switch management: if you proceed, we handle the paperwork and retailer coordination.
- Support for larger businesses: multi-site advice, tendering support, and ongoing monitoring options where relevant.
Frequently asked questions
Are commercial electricity rates the same as business electricity rates?
They are often used interchangeably. In practice, “commercial” sometimes refers to higher-usage C&I customers with more complex tariffs and contract structures, while “business” can include smaller SMEs as well.
Why did my business electricity bill increase if my kWh did not?
A bill can rise due to demand charges, changes to network tariffs, seasonal TOU impacts, higher daily charges, or rate changes at the end of a benefit period. That is why a bill review should look at the full cost breakdown, not just usage.
Is it worth switching electricity retailers for a small business?
It can be, especially if you are out of contract, have rolled onto higher rates, or your tariff no longer suits your usage pattern. The key is to compare total annual cost on a like-for-like basis.
Can my business access renewable electricity options?
Many retailers offer GreenPower or renewable matched options, and larger businesses may explore options like renewable PPAs depending on size and goals. Availability varies by state, site type and retailer offerings.
How long does it take to switch business electricity?
Switching timeframes vary by retailer, meter type and state. In most cases, supply is not interrupted, and the change is primarily administrative.
Next step: request a free commercial electricity rate review
If you want to know whether your current commercial electricity rates are competitive, Zembl can run a free comparison based on your bill. You can also ask us to factor in your tariff type, demand profile and contract terms so you can make a confident decision.
Compare business energy deals with Zembl or, if you are a higher-usage organisation, explore commercial energy procurement options.
Related pages: compare business electricity and commercial electric companies. For contract choices, see fixed vs variable-rate energy plans.
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