Compare business electricity plans

Don't pay more for energy than you need to.

This guide will help you:

• Understand how much you can expect to pay for electricity
• Save on energy costs
• Compare different providers

Compare annual electricity bills from business energy providers

_{These numbers are a guide only and do not reflect actual costs for a particular business. Estimates in this table are calculated for a Small to Medium Enterprise using 20,000 kWh annually, billed at a single rate with conditional discounts applied. Data and rate information is drawn from the SME Retail Tariff Tracker Project report from May 2021.}

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How much does electricity cost for small businesses in Australia?

We've analysed data from the ACCC's September 2020 Inquiry into the National Electricity Market report to help you understand electricity costs from small and medium sized enterprises (SMEs) in Australia.

The data in the report was collected in the third quarter of 2018 and 2019. It refers to median figures, not the average, in order to help cancel out any outliers.

• More details

  State/region	Median bill (market, 2018)	Median bill (standing, 2018)	Median bill (market, 2019)	Median bill (standing, 2019)
  Victoria	$576	$380	$560	$295
  New South Wales	$692	$535	$638	$448
  South Australia	$535	$263	$497	$232
  South East Queensland	$593	$478	$548	$441
  All	$624	$461	$585	$392

For more details, read our guide on how much businesses are paying for power in Australia.

How do I find the best cheap electricity plan for my business?

Having the option to choose from multiple electricity providers can be daunting.

While on the one hand it's beneficial to have a variety of plans to compare, to know which one is the most cost effective can feel overwhelming if you don't know where to start.

The key is to regularly shop around to ensure you're getting the best bang for your buck.

But before you do, there are a few questions to keep in mind (we'll expand on these below):

• How does my business use power?
• Is my provider offering the best rates in the area?
• Is its customer support service up to scratch?

Click on each of the headings below for more details.

• Understanding your energy bill

  Knowing the ins and outs of your energy bill is important to keep costs down and limiting your consumption where possible to help the environment.

  Your bill will include a usage rate charged at cents per kilowatt-hour (kWh) and tariffs.

  Usage rate

  • Example. Let's assume your provider charges 9.5 cents per kWh. You have 30 desktop computers running in your office for a minimum of 8 hours daily. That means you'll be paying $2.28 per day, $68.40 per month or $820.80 per year.

  Tariffs

  This is the method by which you're charged for energy, and might be broken down into:

  • Single rate tariff. You get charged the same rate for all your usage, regardless of time of day.
  • Time of use tariff. This is split into peak, off-peak and shoulder rates and will vary between the different times of the day.

  You can deep dive into our guide to reading your energy bill here.

• Energy prices and rates

  There is a reason why everyone is always beating the same drum again and again about shopping around and switching energy providers.

  Comparing plans. Until you take time out to compare electricity plans, you won't know where you stand with your current provider.

  Sign-up discounts. It may be the case that the limited-time discount you were offered at the start of your plan has run its course (especially if it's been over a year). Start shopping around or ask your provider if you can get on a cheaper plan.

  Exit fees and lock-in contracts. These are generally higher for business customers than residential homes. Before switching providers, find out if they charge an exit fee.

  • Tip. It's worth getting on a contract with your new provider if you're getting a very good fixed rate in return. This means you won't have to worry about market fluctuations and your provider changing rates for at least a year.

• Customer support

  It's always a major stress reliever to be with a provider that has various options to get in touch. At the same time, you also want it to have a good response rate.

  This is especially true when something happens to your power and you need a quick response time to make sure your business is back to running in no time.

  Read plenty of reviews and see what other customers have to say. You can check out the energy provider pages on Finder to get started.

What type of businesses does each energy provider service?

• New South Wales
• Victoria
• Queensland
• South Australia
• Australian Capital Territory

How can my business save on energy costs?

Lowering energy costs can be as easy as cutting back on your usage, or switching to a cheaper business electricity plan to achieve efficiency goals.

Making small changes like the ones we mention below can add up to big financial gains over time.

• Heating and cooling

  There are a few ways to cut down on your heating and cooling costs.

  Efficient insulation can make a world of difference. This will keep temperatures moderate and will help you limit how long you need to heat or cool your office for.

  Upgrading to a more energy efficient air conditioning system may seem costly at first but it will cover the cost of the upgrade quickly.

  • Example. Reverse cycle air conditioners with both heating and cooling capabilities are all the rage these days. Just do your research to avoid the poor performers.

  Consider installing solar panels. Some small businesses may be eligible for government incentives. Check your eligibility here.

  You can deep dive into saving on air conditioning costs here.

• Lighting

  Lighting can account for anywhere between 18% and 40% of your business's electricity bill. That's a huge chunk of money if you're on the higher percentage.

  The good news is that there are multiple ways to save on lighting costs:

  • Invest in energy-saving lights. These use about 25-80% less energy and can last 3-25 times longer.
  • Use dimmer switches to reduce how much electricity the light bulbs use.
  • Install motion-controlled lights for rooms that don't need to be lit up at all times such as toilets or storerooms.
  • Install switches for individual bulbs or a group of them to avoid having all the lights turn on at the same time.
  • Keep your windows clean and open the blinds to let in natural light.
  • Remind yourself and your team to switch off lights, especially when they're the last ones to leave.

• Running an energy audit

  Hiring an energy auditor can help you identify ways to reduce energy consumption and costs.

  Because every business runs differently, there is no one-size-fits-all solution. In general, an energy audit can:

  • Assess your current energy use and tell you where it's being wasted.
  • Recommend improvements.
  • Give you estimates for potential savings.
  • Help you understand your energy bills and compare them against the market.

  Other tips

  • You could also install a power meter on your motor equipment to measure and understand electrical load. A licensed electrician can help you out.
  • Using a good powerboard can often help cut off power to devices in standby mode that are draining electricity.
  • Consider reducing water heating costs by installing a solar hot water system, getting a heat power pump, or leaving sink taps in the cold position after use.

  For a deeper dive into energy saving tips, our guide to being smarter with your energy consumption may be one to bookmark.

How can my business use renewable energy?

If you're keen to get your business on a renewable energy pathway, there are a couple of different ways to go about it.

GreenPower

Reduce the environmental impact of your business by choosing GreenPower-accredited renewable sources.

GreenPower is a government-certified, environmentally responsible energy scheme that allows you to purchase "green electricity".

It's up to you what portion of your electricity usage you want to commit to green electricity — you also have the option to go all in.

• Keep in mind: It doesn't directly power your home. Instead, it is fed into the system. The GreenPower program is comparable to the Oxfam Unwrapped program where you can purchase a goat for charity.

Renewable power incentives

Certain small businesses may be eligible for government rebates and incentives for installing small-scale renewable energy systems (solar, wind or hydro).

You can check your eligibility and apply through the Clean Energy Regulator website.

Alternatively, you can sign up for a business carbon neutral plan. These plans help offset greenhouse gas emissions through the purchase and cancellation of carbon offset units, or through emissions reduction.

Learn more about energy

Our energy guides can help you compare and understand what plan is best for you.

Best energy plans: 5 plans selected by our experts, assessed and updated regularly

Cheap energy plans: Find the cheapest energy plans available this month

Solar power plans: Got rooftop solar? Compare your options and save even more

Average energy bill: Find out how your energy bill compares to the rest of Australia

Frequently asked questions

• What's the difference between business and residential electricity plans?

  The major difference is that businesses use a lot more energy than your typical residential home, and attract different rates and tariffs — almost always at a higher cost.

  This is because they put a higher load on the electricity system and require a separate electrical infrastructure to meet their needs. So while the meter for a small business might not look all that different, it is likely configured to have different tariffs.

  Quick fact

  According to the Australian Bureau of Statistics, Aussie businesses are big energy consumers — 154,439 gigawatt-hours per year to be precise.

• Should I use a broker?

  If you consider your business to be a large energy user, or you're worried about your current utilities bill, then it's likely you'll benefit from speaking to an energy broker.

  They're especially useful for large businesses who are uncertain about their energy set-up.

  Energy brokers can:

  • Ensure the rates you're getting are competitive as they keep track of current market prices.
  • Help you decipher complex energy jargon and costs.
  • Save you time in carrying out your own audit and research.
  • Stay on top of your contract to ensure it doesn't default to a non-competitive rate.
  • Provide assurance that you're being billed correctly.

• Is it easy to switch energy providers?

  If you've decided to part ways with your existing electricity provider, all you have to do is get in touch with the company you're looking to move to.

  It will organise your transfer of services from your old retailer.

  • Tip. Make sure you read your contract before switching providers, as you'll often need to pay an exit fee. Be aware of all the costs you might incur before switching energy providers.

• How long does it take to switch electricity providers?

  It can take anywhere between 6 weeks and 3 months to switch to a new electricity provider. That's because your current retailer will need to carry out a final meter reading which can take up to 3 months to finish.

  However, premises with a smart meter may be luckier with a shorter turnaround time.

  You can use your last energy bill to determine when your next meter reading will be.

  Keep in mind that the wait time will not mean you'll be without power. Even those in the process of switching will be secured with electricity from the grid.