Business energy plans

Energy retailers (also referred to as energy providers) can supply energy to different premise types: residential, businesses and commercial. Typically, businesses and other large establishments consume more energy and their energy consumption habits can differ significantly from residential homes.

Small to medium businesses may be able to compare and choose their energy retailer. However, only those in Victoria (VIC), south east Queensland (QLD), New South Wales (NSW), South Australia (SA), Tasmania (TAS) and the ACT may be able to compare gas and electricity, while Western Australian (WA) businesses can only compare gas.

Large businesses must go through a tender process to apply for a commercial energy contract.

Like residential energy, business electricity runs off tariffs and tariff types. However, the price per kilowatt will vary from what you see in residential electricity plans. There are several types of tariffs in Australia that might suit your business’ needs, including:

• Single rate
• Time-of-use
• Controlled load
• Demand
• Solar feed-in tariff (FIT)
• Gas tariffs.

Find out more about energy contracts and tariffs.

The three tier-one energy retailers in Australia – Origin Energy, AGL and EnergyAustralia – all offer business energy plans. To be considered a tier-one energy retailer, they have to hold at least 10% of the market share in a network region.

Many other retailers may offer energy for businesses, but not all.

If you’re looking to lower your emissions and use more renewable energy in your business, there are a few ways you could invest in sustainability:

• Install a solar photovoltaic (PV) system
• Check if your retailer offers plans with GreenPower
• Choose an energy plan that has carbon offset options.

Keep in mind that not all business customers are eligible for solar power, and not all retailers offer plans that are carbon neutral or are offset with renewable energy.

If you don’t know whether there’s an existing electricity or natural gas supply at your business address, you can check this with the distributor in your area by calling or emailing them.

If you don’t know who your distributor is, you can typically look it up online through the Australian Energy Regulator (AER), or Essential Services Commission Victoria.

You’ll need to sign up to a new electricity contract, for both electricity and gas if your premises uses both with an energy retailer. Your new energy provider will then arrange the connection with the electricity distributor. You’ll need to tell your provider several business days in advance about the date you want to be connected on. Allow at least one day before you move in, as the power can come on anytime between early morning and midnight.

You’ll also need to organise the disconnection at your old location.

Your distributor may charge you a fee, which is billed to your energy provider and passed onto you. Make sure you refer to your energy offer summary, Basic Plan Information Document (BPID) or Energy Price Fact Sheet to see whether you must pay this fee.

In most Australian states, you don’t need to be present on connection day unless your meter is located inside your business premises, behind a locked gate or requires safe access. You’ll be advised of any requirements as part of your sign-up process.

To request a meter installation, you’ll need to contact a registered electrician (who’ll file the required forms for you) or you can apply online through your energy provider. If you install a smart meter, you can get access to different tariffs and the ability to monitor your energy use, which can help reduce your electricity bills.

As with an electricity meter, you’ll need to apply with your provider first to get a gas meter. There are two types of gas meter installations: service line and meter only. Service line installation takes place when you’re not connected to an existing gas pipeline, while a meter only installation just involves the gas meter setup.

Keep in mind that a service line installation can take up to 30 days, while the meter only installation takes up to three business days.

Your typical electricity or gas bill lists your account details, the amount due and the payment due date on the front page, and includes the payment slip at the bottom. The back page of the bill normally shows your next scheduled meter reading and tariff name, and lists your usage and supply details, energy charges (including and excluding GST) and your payment options.

Find out more about how to read your energy bill.

If you feel that you’ve been incorrectly billed and want to check a current meter reading, call your energy provider and they’ll arrange a special meter reading at your business premises (you may be charged for this).

This depends on the nature of your business, and the ways you use energy at your premises. Because all small and medium-sized businesses operate differently, it’s worth reading the relevant information from the Australian Taxation Office.

If you run a business from your home, you’ll need to calculate the electricity/gas expenses related to your home office. Make sure you store a copy of each business energy bill for taxation purposes.

Consider your energy needs, including what you’re consuming your energy for, and assess whether you can change to energy-efficient appliances, or change your consumption habits to use less energy.

You can also switch plans or install a solar energy system. If you use solar power, you could be eligible for a range of government grants, rebates and feed-in tariffs.

Some other ways you lessen your energy usage include:

• Setting up ducted air conditioning
• Turning off the air conditioner in the last hour of business
• Installing a gas heater and gas appliances (e.g. hot water systems)
• Installing energy-efficient appliances
• Investing in insulation.

For more tips on how to improve your business’ energy efficiency, check out our page on small business electricity.