Commercial electricity pricing in NSW is rarely “one rate”. What your business pays is shaped by your network area, meter type, tariff structure, when you use power, and whether demand charges apply. That’s why two similar businesses can sit on very different effective cents per kWh, even if they buy energy from the same retailer.
This guide explains how commercial electricity rates in NSW are built, what to check on your bill, and how Zembl helps you compare business electricity plans and secure a better fit.
Quick takeaways for NSW businesses
- Commercial electricity costs are usually made up of usage charges (c/kWh) plus a daily supply charge, and often demand charges (kW or kVA) for larger sites.
- Network tariffs and charges, set by your NSW distributor, can be a major part of the total bill and vary by location and load profile.
- There is no single “average commercial rate” that applies to all NSW businesses, comparing plans needs your actual interval data or bill details.
- A contract review before renewal is often where the biggest savings opportunities appear, especially if your business has changed hours, equipment, or tenancy.
What are commercial electricity rates in NSW?
Commercial electricity rates are the prices a business pays for electricity at a metered premises. In NSW, most businesses buy electricity through a retailer, while the physical network (the poles and wires) is operated by the local distribution network service provider.
Your bill typically bundles several cost components together. Retailers may show them as line items, or package them into a single rate depending on your contract and bill format.
What makes up a NSW business electricity bill?
Most NSW business electricity bills include the following building blocks.
1) Usage charges (c/kWh)
This is the cost for each kilowatt-hour your site consumes. Depending on your tariff, it can be:
- Single rate: one usage rate across the day
- Time of use: different peak, shoulder and off-peak rates
- Demand based: usage charges plus a demand charge (see below)
2) Daily supply charge (c/day)
A fixed daily amount for having the site connected, regardless of usage. It can materially affect smaller sites, or sites with variable occupancy, because it’s paid every day.
3) Demand charges (kW or kVA)
Many medium and larger NSW business sites are billed with demand charges, based on the highest short period of demand recorded during the billing period (for example, your highest half-hour demand). If your demand charge is high, one short spike can drive a big part of the monthly cost.
Demand charges are a key reason why “cheap c/kWh” on its own can be misleading for commercial customers.
4) Network charges and network tariff
Network charges pay for the distribution and transmission of electricity. In NSW these charges vary by network area and by the network tariff you are assigned. Your tariff is effectively the charging structure applied by the network, then passed through by the retailer.
Getting the tariff right can be a meaningful lever for savings, especially if the site’s operating pattern has changed over time.
5) Other pass-through charges
Depending on the contract and site, you may also see metering charges, environmental scheme costs and market fees included or bundled into your overall rate.
Why commercial electricity rates vary so much across NSW
Retail offers can look similar, but what you pay is driven by your site and usage profile. Common drivers include:
- Network area: NSW businesses are supplied by different distributors, and network pricing differs by region.
- Meter type: interval (smart) meters enable time-of-use and demand charging, and provide better visibility for optimisation.
- Load shape: how your usage rises and falls through the day, not just total kWh.
- Operating hours: sites active during peak windows often pay more under time-of-use pricing.
- Seasonality: heating and cooling loads can shift demand and peak exposure.
- Contract type: fixed vs variable pricing, and the contract term you choose.
NSW tariff types businesses commonly see
Your bill or retailer may reference a tariff name or code. These commonly align with one of the following structures.
Single rate (flat) tariff
A single usage rate at all times. This can suit businesses with steady consumption across the day, or where time-of-use periods do not align with operations.
Time of use tariff
Different rates apply depending on the time electricity is used. If your business can shift discretionary usage to off-peak or shoulder times, time of use can reduce costs. If you consume heavily during peak, it can increase costs.
Demand tariff
A demand tariff adds a demand charge on top of usage. It can work well if you can avoid sharp peaks, for example by staggering equipment start-up, pre-cooling, or sequencing processes.
Controlled load or dedicated circuit tariffs
Some sites have specific loads on a separate circuit (more common in residential, but applicable in some business settings too). These loads may be charged at a different rate and may run during controlled periods.
How to check your current commercial electricity rate
If you want to sanity check what you’re paying today, start with:
- Your usage charges: look for c/kWh for single rate or peak, shoulder and off-peak rates
- Your supply charge: c/day
- Demand charges: look for kW or kVA demand and the $/kW (or $/kVA) rate
- Your network tariff: sometimes listed as a tariff name or code
- Contract end date: if listed on the bill, or in your agreement
For many businesses, the most reliable way to compare is to use a recent bill plus interval data. This allows an apples-to-apples estimate across offers, including different tariff structures.
How to get better commercial electricity rates in NSW
Better rates usually come from a combination of comparing offers correctly and ensuring your tariff and contract match how the site actually uses electricity.
Compare offers using your real bill and usage profile
Commercial pricing is multi-part. Comparing “headline rates” can miss demand charges, supply charge differences, time band definitions, or how discounts are applied. A bill-based comparison is faster and more accurate.
Review your network tariff fit
If your site has changed, for example new trading hours, new HVAC, new kitchen equipment, EV charging, or additional refrigeration, your tariff fit may no longer be optimal. An annual review can surface this.
Choose the right contract type for your risk profile
Some businesses prioritise budget certainty with fixed pricing, while others prefer flexibility and may tolerate more price movement. The best approach depends on usage, cash flow requirements and risk tolerance.
Reduce demand peaks if demand charges apply
Small operational changes can sometimes reduce demand costs, such as staggering large loads, adjusting setpoints, or avoiding simultaneous start-up of multiple high-load devices.
How Zembl helps NSW businesses compare and switch
Zembl makes it easier to compare NSW commercial electricity pricing without spending hours interpreting tariff structures.
- Bill review: we analyse your current bill and pricing components
- Comparison across retailers: we compare offers from our panel based on your usage profile
- Tariff and pricing fit: we check whether your current tariff and pricing structure suit your business
- Switching support: if you approve an offer, we handle the paperwork and the switching process
Which NSW businesses benefit most from a rate review?
- Businesses approaching contract renewal
- Sites that have never had a tariff review
- Businesses that have added new equipment or extended hours
- Multi-site operators trying to consolidate and standardise energy management
Frequently asked questions
Is there a “cheapest commercial electricity rate” in NSW?
Not universally. What is cheapest depends on your network area, tariff, usage profile, and whether demand charges apply. The best way to find the cheapest option for your business is to compare offers using your actual bill and interval data.
Why did my NSW business electricity bill go up even if we used less power?
Common reasons include higher supply charges, changes to peak and off-peak rates, demand charge spikes, or changes in network pricing. A bill review can identify which component drove the increase.
Do small businesses in NSW get the same pricing as large businesses?
No. Small and medium businesses are often on standard market retail offers, while larger commercial and industrial customers may access more customised pricing structures and procurement approaches. The best option depends on annual consumption and bill size.
When should I review my NSW commercial electricity contract?
Ideally, start within the 12 months prior to the end of your current agreement so you have time to compare options and avoid rolling onto less competitive rates.
Get a free commercial electricity comparison for your NSW business
If you want to stop guessing whether your business is paying competitive rates, Zembl can review your latest bill and compare options that match your site’s usage profile.
Compare business energy plans with Zembl or, if your business spends more and needs a tender process, explore commercial energy services.
For larger organisations that want a structured approach to locking in pricing, see commercial energy procurement. To build your understanding of how business electricity pricing works, read Business electricity explained and Fixed vs variable-rate energy plans.
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