Comparing business electricity plans is one of the simplest ways to control operating costs, but it can also be confusing. Rates vary by state, network area, tariff type and even the time of day your site uses power. On top of that, business contracts often include different fee structures, demand charges and benefit periods that make “headline” prices hard to compare.
This guide explains how to compare electricity plans for Australian businesses in a practical, like-for-like way, so you can identify better value offers and switch with confidence.
Why comparing business electricity plans matters
Many businesses stay on the same plan for years, even when their usage pattern changes or market prices move. Common outcomes include:
- Rolling onto higher rates after a contract ends
- Paying the wrong tariff for your operating hours
- Getting caught by demand charges or peak pricing you did not expect
- Missing better value offers that are available in your distribution zone
A structured comparison helps you understand what you are paying today and what you could pay on an alternative plan, based on your real usage.
What affects business electricity rates in Australia
Business electricity pricing is made up of several cost components. Even when retailers advertise a single c/kWh rate, the underlying drivers usually include:
- Wholesale electricity costs, influenced by supply, demand and market conditions in the National Electricity Market (NEM)
- Network charges, set by the distribution network in your area and overseen by regulators
- Environmental scheme costs, such as renewable energy obligations embedded in pricing
- Retailer costs and margin, which vary by provider and contract structure
- Your tariff and load profile, which reflects when and how you use electricity
Because each site has a different load profile, the “best” plan is usually the one that matches your operating hours and equipment usage, not necessarily the plan with the lowest advertised rate.
How to compare business electricity plans step by step
1) Gather the right information from your bill
Start with at least one recent electricity bill. Ideally, use 12 months of bills if your usage is seasonal. Note:
- Total kWh used per billing period
- Daily supply charge (c/day)
- Usage rates (single rate, or peak, shoulder and off-peak rates)
- Any demand charges (often billed in $/kW)
- Your tariff name or code (varies by network)
- Contract end date and any benefit period expiry
If you run multiple locations, do this for each site. Sites in different distribution zones can be priced very differently.
2) Identify your tariff type
Most Australian businesses will be on one of these structures:
- Single rate: the same c/kWh rate regardless of time
- Time of use: different rates for peak, shoulder and off-peak periods
- Demand tariff: a component of your bill is based on your highest recorded demand over a set interval
Tariff choice has a major impact on total cost. A time of use plan can be great for businesses that can shift load away from peak times, while a demand tariff can be expensive if you have short, sharp spikes from equipment starting up.
3) Compare the total cost, not just the headline rate
Two offers can look similar on paper but deliver very different annual costs. For a proper comparison, ask for a like-for-like estimate using your historical usage, including:
- Supply charge
- All usage rates (and the times they apply)
- Demand charges where relevant
- Any pass-through fees or adjustments
- All discounts or credits, and whether they are conditional
If you only compare a single c/kWh figure, you may miss higher fixed charges or demand costs that make the deal more expensive overall.
4) Check contract terms and flexibility
When you shortlist an offer, review:
- Contract length (commonly 12, 24 or 36 months)
- Price structure: fixed rates vs variable rates
- Exit fees or early termination clauses
- Rollover conditions at the end of term
- Billing options, including monthly billing and consolidated billing for multi-site groups
For many businesses, budget certainty and clean contract terms are just as important as the cheapest rate.
5) Consider renewable and carbon options if relevant
Some businesses want a plan that supports sustainability goals, for example through GreenPower style options or renewable matched products. The right approach depends on your organisation’s ESG requirements, budget and reporting needs. A broker can help you understand what is available for your size and location.
Common traps when comparing business electricity
- Discount focus: a large percentage discount can still be expensive if the base rates are high
- Ignoring demand charges: a single demand spike can materially increase costs on some tariffs
- Not aligning the tariff to operating hours: businesses that trade in the evening can be heavily exposed to peak pricing on some plans
- Assuming the same retailer is best for every site: multi-site portfolios often benefit from site-by-site optimisation
- Waiting until the last minute: procurement is easier when you start before your contract expires
What is the fastest way to compare business electricity plans
Online comparison tools can provide a quick starting point, but they may not model your tariff correctly or include all cost components for business sites. The fastest reliable approach is usually a bill-based comparison, where your real usage data is used to test offers properly.
Zembl provides a free business electricity comparison service. You share a recent bill, an Energy Expert reviews your usage and tariff, then compares offers from our panel of leading Australian retailers. If you approve an option, we manage the switch and paperwork for you.
How Zembl helps businesses compare and switch
Zembl is an Australian energy comparison and procurement specialist. We help businesses reduce electricity costs by combining bill analysis with market comparisons and hands-on support.
- Free bill review to check your current rates, tariff and contract terms
- Offer comparison across a panel of reputable retailers
- Plain-English explanation of differences between tariffs, pricing structures and terms
- Switch management handled end-to-end, with no interruption to supply
- Support for multi-site businesses and more complex billing requirements
Frequently asked questions
How often should a business compare electricity plans
As a guide, review pricing at least once a year, and again several months before your contract end date. You should also review after major changes like new equipment, extended trading hours, a new site, or installing solar.
Will switching electricity retailers affect my supply
No. Your physical supply is delivered through the same poles and wires. Switching retailers is an account and billing change, not a change to your connection.
Why are my rates different to another business nearby
Even within the same suburb, sites can be on different tariffs, have different metering, or fall under different contract structures. How and when you use electricity often matters as much as how much you use.
Can small businesses access regulated reference prices
In parts of Australia, small businesses may be covered by safety net pricing frameworks like reference prices for standing offers. Eligibility and terminology vary by state. A bill review can confirm how your account is classified and whether you are likely on a default type offer.
Next steps
If you want a faster, more accurate comparison, start with a bill review. Zembl can confirm your tariff, check whether you are on competitive rates, and show you alternatives that match your usage profile and location.
To learn more about how business electricity pricing works, visit our business electricity page, or explore related guides on tariffs and business energy comparisons.
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