Energy is one of the biggest controllable operating costs for many Australian businesses. If you have not reviewed your electricity or gas plan in the last 12 months, there is a good chance your rates, tariff, or contract terms are no longer competitive.
This guide explains how to compare energy plans in Australia, what to look for beyond the headline cents per kWh, and when it makes sense to get help so you can save time and avoid costly contract traps.
What it means to compare energy plans in Australia
When you compare plans, you are comparing more than just a usage rate. A business energy plan can include:
- Usage charges (c/kWh for electricity, c/MJ for gas), sometimes split by peak, shoulder and off-peak periods
- Daily supply charges (c/day), a fixed fee for being connected to the network
- Tariff structure (single rate, time of use, demand tariff and other network tariff types)
- Contract terms (length, renewal clauses, and what happens when benefits end)
- Fees (metering, late payment, paper bill fees, and possible exit fees)
- Pass-through items for some larger users (network, environmental and market charges may be treated differently depending on the agreement)
The best plan is the one with the lowest total cost for your actual usage profile, with terms that suit how your business operates.
How much does electricity cost on average in Australia?
Average prices vary by location, tariff, and customer type. As a broad guide, many customers will see electricity usage rates in the range of around 20 to 40 cents per kWh, however this can be higher or lower depending on your state, network area, and whether you are on a small business plan or a larger commercial contract.
The more accurate way to compare is to model your past bills against new offers. That means applying the proposed supply charge, usage rates and tariff structure to your recent consumption, ideally over the last 12 months.
What to check before you start comparing plans
1) Are you on a standing offer or a market offer?
If you never actively chose a plan, or your discount ended months ago, you may be on a standing or default type offer. For eligible small business customers, default pricing benchmarks may apply in some states, and they can be a useful reference point. Market offers are often more competitive, but the terms vary widely.
2) When does your current contract end?
Start comparing well before your end date. Leaving it too late can mean you roll over onto higher rates, or you have less negotiating power because you are rushed.
3) What tariff are you on?
Tariffs have a major impact on your bill. Two businesses on the same retailer can pay very different total costs because they are on different network tariffs. Common business tariff types include:
- Single rate: one usage rate all day
- Time of use: different rates at different times
- Demand tariffs: part of your bill is based on your highest demand during a period, not just total consumption
How to compare electricity plans for a business
Use this process to get a like-for-like comparison.
Step 1: Gather the right information
- Your last 1 to 4 electricity bills, or 12 months if you can
- Your National Metering Identifier (NMI) for each site
- Your current rates, daily supply charge, and tariff type
- Your contract end date and any benefit end date
Step 2: Compare the total cost, not just the lowest rate
A plan with a slightly higher c/kWh can still be cheaper if it has a lower daily supply charge or a tariff structure that fits your trading hours.
Step 3: Check fees, benefit periods and what happens after promos end
Many plans include bill credits, sign-up offers, or conditional discounts. Always confirm:
- How long the benefit lasts
- Whether the discount applies to the whole bill or only usage
- Whether rates revert to a higher base price when the benefit ends
Step 4: Review contract flexibility and exit terms
Electricity prices can change, and your business can change too. Understand whether you can move sites, add meters, or exit early, and what fees apply.
Step 5: Consider demand charges and load profile (if applicable)
If you are on a demand tariff, a single short peak can set your demand charge for the month. Businesses with refrigeration, large HVAC, compressed air, or production lines often benefit from checking:
- When your demand peaks occur
- Whether equipment start-ups are causing spikes
- Whether a different tariff would better suit your operating profile
How to compare gas plans for a business
Gas plans are often simpler than electricity, but there are still important differences. When comparing gas offers, check:
- Usage rate (c/MJ) and daily supply charge
- Any minimum usage fees
- Contract length, price change clauses and exit fees
- Whether aligning gas and electricity contract end dates could simplify future reviews
State and market differences to be aware of
Energy plan availability depends on where your site is located and whether your state has a deregulated retail market.
- In the National Electricity Market states (NSW, ACT, QLD, SA, VIC, TAS), most businesses can choose from multiple retailers, depending on the network area and site type.
- Some regions have fewer options, particularly for certain gas networks or remote areas.
If you operate across multiple states, comparing plans needs to account for different network tariffs, metering arrangements, and contract structures by site.
The fastest way to compare energy providers
The fastest way is to have an expert compare offers for you on a like-for-like basis. Zembl can:
- Review your bills and confirm your current rates, tariff and contract position
- Compare offers from a panel of Australian energy retailers
- Explain the trade-offs between pricing, flexibility and risk
- Handle the switching paperwork if you approve a better plan
To learn more about how we work with businesses, visit our electricity for businesses page. If you are looking at both fuels, you can also review gas and electricity quotes.
Common mistakes when comparing energy plans
- Comparing discount percentages instead of effective rates
- Ignoring supply charges, especially for lower-usage sites
- Missing demand or time-of-use impacts on a new tariff
- Not checking benefit end dates and rollover conditions
- Leaving it until the last minute, which reduces your options
Frequently asked questions
Will my supply be interrupted if I switch providers?
No. Switching retailers changes who bills you, not the physical supply. Your network and the market operator continue delivering electricity through the same infrastructure.
How often should a business compare energy plans?
As a rule of thumb, review plans at least annually, and again several months before your contract ends. Also review after major changes such as new equipment, extended trading hours, moving premises, or installing solar.
Is the cheapest plan always the best?
Not always. The best value plan depends on your usage profile, tariff, and risk preferences. A slightly higher rate with better terms, a better tariff fit, or fewer fees can be cheaper overall.
Next steps
If you want to compare energy plans without spending hours on calls and spreadsheets, share a recent bill with Zembl. We will benchmark your current deal against competitive offers and clearly show potential savings before you decide.
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