Electricity is often one of the top controllable operating costs for Australian businesses. The challenge is that business bills can be harder to compare than residential plans, especially once you factor in network tariffs, demand charges, peak and off-peak pricing, and different contract structures.
This guide explains how electricity for businesses works in Australia, what to look for when comparing business electricity plans, and how Zembl helps businesses secure more competitive rates with an obligation-free bill review.
Why business electricity costs can blow out
Many businesses treat electricity as a fixed overhead, then only notice the impact when prices rise or usage spikes. In reality, business electricity costs are typically driven by a mix of:
- Usage charges: cents per kWh or dollars per MWh, sometimes tiered or time-based.
- Supply charges: a daily fixed fee for the connection.
- Network charges: set by your local distributor and heavily influenced by your network tariff.
- Demand charges: for many sites, based on the highest short interval demand recorded during the billing period.
- Contract structure and risk: fixed vs variable pricing, pass-through components, and term length.
If you have not reviewed your plan recently, you may be paying for a tariff or structure that no longer matches how your site actually uses power.
What affects business electricity prices in Australia
Business electricity pricing varies by state and site because the bill is made up of multiple components. Key factors include:
- Location: network costs and retail competition differ across NSW, VIC, QLD, SA, ACT, TAS and WA.
- Meter type: interval meters enable time-of-use and demand-based pricing, which can be an opportunity or a risk depending on load profile.
- Trading hours: businesses operating during weekday peaks often face higher costs than those able to shift load.
- Seasonality: heating and cooling loads can change demand and push you into costlier intervals.
- Power factor and onsite equipment: for larger sites, electrical characteristics and plant start-up patterns can influence charges.
For a practical breakdown of how business bills are structured, read business gas and electricity bills explained.
Common business electricity tariffs and plan types
Tariffs and plan structures vary by retailer and network, but these are the most common formats Zembl sees when reviewing SME and C&I bills.
Single rate (flat) tariffs
You pay the same usage rate regardless of when power is used. This can be simpler to budget for, but may not be cheapest if your business uses power mostly outside peak periods.
Time-of-use tariffs
Different rates apply across peak, shoulder and off-peak periods. This can reward businesses that can shift usage to cheaper times, but it can also penalise operations that must run during peak windows.
Demand tariffs
Demand tariffs add a charge based on your highest demand (kW) over a defined interval. One short spike can materially affect the bill, even if overall consumption is stable.
If demand charges appear on your bill, it is worth understanding how your network and retailer calculate them. See understanding energy demand charges for business owners.
Fixed vs variable pricing
- Fixed pricing: usage rates are locked for the term, which can improve budget certainty.
- Variable pricing: rates can change, sometimes with notice periods, which can expose your business to market movement.
Which structure is best depends on your risk appetite, contract horizon, and whether you are able to change usage patterns.
How to compare electricity plans for your business
A good comparison is not just about a lower cents per kWh figure. It is about the total expected bill based on your usage profile and site configuration.
1) Start with a recent bill and interval data if available
Your bill shows supply charges, usage rates, demand charges, and the tariff you are on. If you have interval data, you can understand peak demand, time-of-use exposure, and opportunities to reshape load.
2) Confirm your contract position
Check:
- Contract end date and notice period
- Early termination fees
- Whether rates are fixed, variable, or partially pass-through
3) Review your network tariff suitability
Network charges can make up a significant share of a business bill. If your operations have changed, a tariff review may uncover savings by aligning the tariff to your actual demand and trading profile.
4) Model the total cost, not just the headline rate
Two offers with the same usage rate can deliver different total outcomes due to supply charges, demand components, discounts, or assumptions around load profile. The goal is to compare expected bills apples to apples.
5) Check service and account support
For many businesses, responsiveness, billing accuracy and retailer support matter as much as price, particularly if you have multiple sites or need billing data for internal reporting.
If you want a structured, retailer-panel comparison without spending hours researching offers, Zembl can help with a business electricity price comparison.
How Zembl helps you secure a better business electricity deal
Zembl works with a panel of reputable retailers to compare options based on your usage and site details. Our process is designed to be simple for SMEs and robust enough for larger organisations.
- SMEs: obligation-free bill review and a clear comparison of available offers. If we find savings and you are ready, we can help manage the switch.
- Larger C&I businesses: support through a structured market review or tender, plus ongoing services like bill validation and network tariff reviews.
If you are managing multiple sites or have complex requirements, you can also learn about Zembl’s approach to commercial energy procurement.
How long does it take to switch business electricity providers?
Switching timeframes vary by state, meter type, and site complexity. In many cases, changing retailers is a paperwork and billing transition, not a physical change to your electricity supply. Typical timeframes range from a few business days to a few weeks.
Your switching timeline may be longer if you are:
- Waiting for a contract end date to avoid break fees
- Managing multiple NMI sites
- In an embedded network or a site with complex metering
Quick checklist: what to look for on your next bill
- Any demand charge line items, and whether a single spike is driving costs
- Whether you are on time-of-use and paying peak rates during business hours
- Supply charge changes, especially if you run multiple meters
- Confirmation of your tariff and whether it still suits your operations
- Contract end date and whether you are close to rolling onto higher standing rates
Get an obligation-free business electricity review
If you want to reduce your electricity costs without sacrificing service, Zembl can review your bill, explain what is driving your costs, and compare offers from our retailer panel.
You can also explore related guidance on commercial providers via commercial electric companies.
Send us your latest bill details and we will get back to you promptly.
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