Should businesses bundle electricity and gas contracts?

Electricity and gas bundled contracts can be a good move for some Australian businesses, mainly when the same retailer is genuinely competitive on both fuels and the whole-of-bill outcome is lower than running separate contracts. The trade-off is reduced flexibility: if either electricity or gas becomes uncompetitive, a bundled arrangement can make it harder and more expensive to switch just one fuel.

This guide explains how bundled energy contracts work in Australia, the pros and cons, what to check in the fine print, and a simple decision framework to help you choose between combined energy procurement and separate contracts.

What are electricity and gas bundled contracts?

In a commercial setting, “bundling” usually means procuring electricity and natural gas under one retailer relationship, often with:

One account manager or service team
Aligned contract start and end dates
Consolidated billing or invoice grouping
A dual-fuel incentive, such as a rate discount, credit, or fee waiver

Bundling can be offered to small businesses on simpler tariff structures, and it can also be structured for larger commercial and industrial (C&I) customers through negotiated agreements. The underlying pricing can still differ by fuel and by site, even when the relationship is “bundled”.

Why businesses consider bundled energy contracts

Most businesses explore combined energy procurement for one of three reasons:

Administrative simplicity: Fewer vendor relationships, fewer invoices, easier approvals and reconciliations.
Pricing leverage: Retailers may sharpen pricing when they win both fuels, especially if your spend is meaningful or you have multiple sites.
Consistency: Aligned contract dates, consistent reporting, and a clearer renewal process.

Pros of electricity and gas bundled contracts for businesses

Simpler admin and fewer moving parts

For many SMEs, the biggest win is operational: one retailer, one portal, fewer bills, and fewer time-consuming follow-ups. This can matter if you have:

Multiple sites
Staff turnover in accounts payable
Limited time to manage energy

Potential whole-of-portfolio savings

Bundling can create a “portfolio” conversation: rather than optimising one site or one fuel, you negotiate across all accounts. Some retailers will trade margin on one fuel to win the other, which can improve your total outcome.

However, the only reliable way to confirm savings is to compare total annualised costs across both fuels. A small discount on one line item does not guarantee lower bills.

Aligned renewals and fewer contract cliffs

When electricity and gas contracts end at different times, businesses can face repeated renewal events, sometimes landing on higher default rates if a contract expires unnoticed. Bundling can reduce that risk by aligning terms and renewal processes.

One relationship for service, billing, and disputes

When something goes wrong, such as billing anomalies, meter changes, or site moves, dealing with one retailer can speed up resolution. This is especially useful for businesses with frequent tenancy changes or site fit-outs.

Cons and risks of bundling electricity and gas for business

You can lose flexibility, especially if one fuel is uncompetitive

The biggest downside is that retailers may not be best-in-market for both fuels at the same time in every network area. If you bundle and the gas price becomes uncompetitive, you may not be able to move gas alone without:

Losing the dual-fuel discount
Triggering contract penalties
Creating mismatched contract end dates again

Exit fees and termination clauses can bite

Commercial contracts often include early termination fees, make-good clauses, or liquidated damages, particularly for larger users. If electricity and gas are tied together, a change in one fuel can unintentionally create consequences for the other.

Tip: Always check whether the fuels are legally “linked” in one agreement, or simply co-managed under one retailer with separate contract documents.

Discounts can distract from total cost

Dual-fuel discounts are often marketed as a clear win, but the base rates may be higher. In practice, it is common to see:

A higher supply charge offsetting a usage discount
A sharp electricity rate paired with a weak gas rate
Introductory credits that do not persist beyond the first billing period

The right comparison is always a whole-of-bill model using your actual 12-month usage, not headline cents per kWh or cents per MJ.

Bundling can reduce competitive tension at renewal

When a retailer already holds both fuels, they have less to lose at renewal. Separate procurements, or at least separate benchmarking, can maintain stronger competitive pressure.

Operational risk, one supplier concentration

Even though supply continuity is maintained by networks, not retailers, a single-retailer strategy can still concentrate billing and customer service risk. If the retailer has systemic billing issues or poor support, you feel it across both fuels.

Bundled vs separate contracts: A decision framework

Use this practical framework to decide if bundled energy contracts are likely to suit your business.

1) Are you primarily an SME or a C&I customer?

SME: you are more likely to be on simpler, bundled retail pricing structures and may benefit more from admin simplicity.
C&I: you may have unbundled, negotiated pricing with pass-throughs, demand charges, and complex terms. Bundling can still work, but contract detail matters much more.

2) Do both fuels sit in the same “competitive zone” for retailers?

Retail competitiveness varies by state, network area, and market conditions. It is common for a retailer to be strong in electricity in one region and weaker in gas, or vice versa. If you have sites across multiple states, you may be better off with a blended strategy rather than insisting on one retailer for everything.

3) Can you quantify savings across both fuels?

A proper comparison should model:

Electricity usage rates, supply charges, demand charges, and any time-of-use structure
Gas usage rates and supply charges
All fees, including metering, pass-throughs, and any admin charges
The value and conditions of any dual-fuel discount or credit

If the savings are not clear after modelling, bundling is usually not worth the flexibility trade-off.

4) Are contract terms aligned with how your business changes?

Bundling is riskier if your business is likely to:

Close or relocate sites during the term
Change hours or install major equipment that alters demand
Add or remove gas appliances, for example switching kitchens, HVAC, or hot water systems

If change is likely, prioritise flexible terms, transparent pass-throughs, and clear move/exit provisions.

What to check in a bundled electricity and gas offer

Contract structure

Is it one master agreement covering both fuels, or two separate agreements under one retailer relationship?
Are start and end dates aligned, and what happens if one fuel starts earlier?
Do you have the right to terminate one fuel without impacting the other?

Price type: Fixed, variable, or hybrid

Business energy pricing may be:

Fixed: a locked-in usage rate for a period, often attractive for budgeting.
Variable: rates can change, sometimes with notice periods.
Hybrid: part fixed, part pass-through, common in larger contracts.

Ensure you understand whether both fuels follow the same pricing logic, or if one is fixed while the other floats.

Fees, pass-throughs, and indexation

Look for:

Network and market pass-through clauses (more common for C&I)
Metering costs and change fees
Annual price review clauses and escalation methods
Billing fees, paper invoice fees, and payment method fees

Dual-fuel discounts and conditions

Confirm:

How the discount is applied, usage rate, supply charge, or bill credit
Whether the discount is conditional on paying on time or direct debit
What happens to the discount after the benefit period
Whether the discount is removed if you change one fuel

Site moves, churn, and expansion

If you operate multiple sites, check how the retailer handles:

Adding new sites mid-term, do they get the same rates?
Closing a site, are there make-good charges?
estructuring accounts, for example franchise transfers

When bundling usually makes sense

You want admin simplicity and your spend is not large enough to justify separate tender processes.
The retailer is competitive on both fuels in your network area, confirmed by whole-of-bill modelling.
Contract terms are clean, with reasonable exit and move clauses.
Contract dates align and you want one renewal cycle.

When separate procurement is often better

You have meaningful spend and can run competitive tension separately for electricity and gas.
Your electricity and gas profiles differ, for example high electricity demand charges but low gas usage, or seasonal gas loads.
You are exposed to complex terms and need the ability to change one fuel without resetting the other.
Different retailers are clearly best-in-market for each fuel in your region.

Australian market considerations businesses should know

Network areas still drive a large part of your costs

Even if you bundle, the poles, wires, and pipelines in your area determine network charges and some tariff structures. Retailers can influence the retail component, but network pricing can make one “deal” perform very differently site to site.

SME protections vs larger customer terms

Smaller customers generally have stronger consumer protections under energy retail frameworks, while many larger customers are treated as more sophisticated counterparties and can face more onerous terms, including higher early termination costs. If your business sits near the SME/C&I threshold, it is worth confirming what contract regime you are being offered before you sign.

Energy usage changes can change your “best” answer. Bundling decisions should be revisited when you change operating hours, install new equipment, electrify gas loads, or add sites. A bundle that worked last year may not be optimal after operational changes.

Practical steps to compare bundled energy contracts

Collect 12 months of bills for electricity and gas, for each site.
Confirm tariff and meter details, especially demand tariffs and time-of-use.
Request like-for-like quotes for a bundled option and for separate electricity and gas contracts.
Model the whole-of-bill outcome, not just cents per unit.
Stress-test the contract: consider site closures, expansions, and early termination scenarios.
Decide based on total value: price, flexibility, service, and risk.

How Zembl can help with bundled energy contracts

Zembl helps Australian businesses compare options across our retailer panel, including bundled energy contracts and separate procurement, with clear explanations of pricing structures and terms. If you decide to switch, we manage the paperwork and coordinate the change so your supply stays uninterrupted.

If you want to benchmark your current arrangements, these guides may also help:

Frequently asked questions

Is it cheaper to bundle electricity and gas for business?

Sometimes, but not always. Bundling can be cheaper when one retailer is competitive on both fuels and the dual-fuel incentive improves the whole-of-bill outcome. It is not automatically cheaper because base rates and supply charges still matter.

Can I bundle electricity and gas if I have multiple sites?

Often yes. Some retailers can bundle under a portfolio arrangement, which may simplify billing and support. Always confirm how new sites are priced and whether rates remain consistent.

Does bundling affect supply reliability?

No. Your electricity and gas are delivered by the same physical networks regardless of retailer. Bundling mainly affects billing, contract terms, and pricing.

What is combined energy procurement?

Combined energy procurement is the process of sourcing electricity and gas together, typically as one negotiation, to simplify administration and potentially improve pricing leverage. It can also refer to portfolio procurement across multiple sites.

What is the main risk with bundled energy contracts?

The main risk is reduced flexibility. If one fuel becomes uncompetitive or your business changes, it can be harder or more expensive to change just one part of the arrangement depending on contract terms.

Need a quick answer for your business? If you share a recent electricity and gas bill, Zembl can model bundled versus separate options and show the difference in dollars, not just rates.