Electricity is one of the biggest controllable overheads for Australian businesses. The challenge is that it is rarely as simple as choosing the cheapest cents per kWh. To compare offers properly you need to understand your tariff type, daily supply charge, whether demand charges apply, and how contract conditions can change your total bill.
This guide explains how to compare business electricity plans in Australia, what to check on your bill, and how Zembl helps you review pricing and switch without the admin.
What it means to compare business electricity deals in Australia
For most businesses in the National Electricity Market (NSW, VIC, QLD, SA, ACT and parts of TAS), you can choose between multiple retailers and a wide range of market offers. In WA, the NT, embedded networks, and some regional areas, retail choice can be limited.
When businesses say they want to “compare electricity”, they usually mean one of these goals:
- Reduce total costs by moving to a better rate or a better tariff structure
- Improve budget certainty by locking in pricing for a contract term
- Fix billing complexity across multiple sites, cost centres, or trading entities
- Align pricing to operating hours so your peak rates match when you actually use energy
Comparing properly means estimating total annual cost, not just comparing one rate line on a brochure.
Before you compare plans, pull these details from your bill
If you want accurate quotes, start with the last 1 to 3 bills (or ideally 12 months for seasonality). These items are the ones that matter most:
- NMI (National Metering Identifier) for electricity, this identifies your meter in most NEM states
- Current tariff type: single rate, time of use, demand based, controlled load
- Total usage (kWh) per billing period and per year
- Peak demand (kW or kVA) if your site is demand billed
- Daily supply charge (c/day)
- Contract end date and any auto rollover conditions
If you manage multiple locations, gather this for each NMI. Even sites in the same suburb can be on different network tariffs and produce different outcomes from the same offer.
Key costs to compare in business electricity plans
Usage rates: single rate vs time of use
Usage rates are the cents per kWh part of your bill. Many smaller sites are on a single rate tariff, but time of use pricing is increasingly common for business customers with interval meters.
With time of use tariffs, your usage is billed at different rates depending on when you consume electricity, usually split into peak, shoulder, and off peak windows. This can be great if you can shift load, but expensive if most of your usage sits in peak windows.
Daily supply charge
The supply charge is a fixed fee for being connected. It applies even if your usage is low. For low consumption sites and multi site portfolios, supply charges can materially impact total cost, so comparing only usage rates can be misleading.
Demand charges (for medium and large sites)
Some businesses pay a demand charge based on the highest 15 or 30 minute demand interval in a billing period. Demand charges can dominate your bill if you have high startup loads, electric heating, refrigeration, compressed air, or multiple large items switching on at the same time.
When comparing offers, check:
- How demand is measured (kW vs kVA)
- When demand applies (all day vs peak windows)
- Whether demand is a rolling or maximum demand calculation
Metering and other pass through fees
Metering costs and network related charges are often bundled into your tariff. While you cannot negotiate regulated network charges directly, you can often reduce total cost by selecting a plan and tariff structure that better fits your load profile.
Contract length, renewals and exit fees
The most expensive mistake many businesses make is letting a contract expire and rolling onto a default or standing arrangement. When you compare electricity deals, always ask:
- Is this a market offer or a default offer?
- What happens when the contract ends?
- Are there early termination fees?
- Can I add or remove sites during the term?
How to compare business electricity rates step by step
Step 1: Estimate your annual cost, not just your kWh rate
To compare accurately, calculate a simple annual estimate based on your real usage pattern. For single rate plans this can be straightforward. For time of use and demand based tariffs, the best approach is to use interval data or detailed bill data so you can model peak and off peak consumption and demand.
Step 2: Check whether your tariff matches your operating hours
A plan can look cheap but still cost more if your business operates when rates are highest. For example:
- Hospitality and late trading can benefit from stronger off peak pricing
- Warehousing with early starts can be exposed to peak windows depending on the network
- Manufacturing can often reduce demand charges by managing startup sequences
Step 3: Compare apples with apples across retailers
Retailers package pricing differently. Discounts might apply only to usage, or only for on time payment, or exclude some components. Always compare the total estimated cost with the same assumptions.
Step 4: Consider risk and budget certainty
Some businesses prefer fixed pricing for budget planning. Others are comfortable with more variable structures. The right choice depends on your risk tolerance and how sensitive your margins are to price movements.
Step 5: Start the review before your contract end date
Begin comparing at least 60 to 90 days before your contract ends. This gives you time to gather data, evaluate offers, and avoid a rollover onto higher rates.
Common mistakes when comparing business electricity plans
- Only comparing cents per kWh, while ignoring supply and demand charges
- Missing tariff suitability, especially for time of use and demand structures
- Not checking contract end dates, leading to unplanned rollovers
- Assuming the same plan works for every site, even within the same business
- Not validating bills, which can hide metering or tariff issues over time
How Zembl helps you compare business electricity
Zembl streamlines business energy comparisons by using your real bill information to compare offers from our panel of leading retailers, then handling the switching process if you decide to move.
Fast, free bill review
Send through a recent bill and we will review your current pricing and tariff setup. For many SMEs, the initial comparison is quick, and you get clear options to consider.
Help for SMEs and larger businesses
If you are a smaller business that is not locked into a contract, we can often help you switch quickly. If you are a larger business or have multiple sites, we can support a more structured process that accounts for demand, network tariffs and portfolio structure.
No disruption to supply
Switching retailers does not mean switching off your power. Your electricity keeps flowing through the same poles and wires. The change is administrative, and we help manage it end to end.
Support beyond the switch
For businesses that need it, ongoing support can include bill checking and helping you stay on top of contract renewals, so savings are not lost at the next rollover.
Frequently asked questions
How often should a business compare electricity?
A good rule is at least once a year, and always 2 to 3 months before your contract end date. If your usage changes due to new equipment, longer operating hours, or a site expansion, it is worth reviewing sooner.
Is the cheapest business electricity rate always the best?
Not always. The best plan is the one that produces the lowest total cost for your actual usage profile and gives you contract terms that fit your business. A low usage rate can be offset by higher supply charges, demand charges, or restrictive conditions.
Can small businesses negotiate electricity rates?
Many small businesses can access competitive market offers, but it can be time consuming to compare properly. Using a service that understands tariff structures can help you identify realistic savings faster.
What information do I need to get accurate quotes?
Your NMI, recent bills, approximate annual usage, and the contract end date are usually enough to start. For demand based and complex sites, interval data can improve accuracy.
Next step: request a business electricity comparison
If you want to reduce electricity costs without spending hours comparing plans, Zembl can review your current bill and share competitive options suited to your site and usage. If you decide to proceed, we will handle the switch and paperwork.
Talk to a Zembl Energy Expert to get started.
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