If you’re a small to medium business owner, you’ll inevitably come across an energy contract with an electricity or gas tariff.
We’ll help you sort through the industry jargon, so you can make more informed decisions about your energy plan and potentially save on energy costs.
When it comes to powering your business, you typically need to use less than 100 megawatt hours (MWh) of electricity per year to be considered a small to medium business. If your business uses above that threshold, you generally won’t be able to compare energy plans online.
When you sign up for an electricity or gas plan from an energy retailer (also referred to as your energy provider), you automatically enter a contract. This contract means that when you move into a property (with an existing connection), you’re responsible for paying the energy bill to the retailer.
However, you can break your contract and switch to another retailer (if your state or area has multiple retailer options and competition is allowed).
There are two main types of energy contracts for small to medium businesses:
You can ask your current energy retailer which type of energy contract you’re on.
Keep in mind that state and territory governments may still set energy rates in parts or all of Western Australia, Tasmania, regional Queensland and the Northern Territory.
Learn more about small business electricity and gas plans for businesses.
A ‘tariff’ is the price you’re charged for using energy under your contract. The energy distributors (owners of energy infrastructure) that service your area set these tariff structures.
Tariffs typically consist of two parts:
You can find the supply and usage charges that make up the tariff on your gas or electricity bill. It’s also worth noting that your tariffs depend on the type of meter and your business model (e.g. an office will have different energy needs compared to a restaurant).
The type of tariff you’re on can affect the electricity costs for your business. There are several types of electricity tariffs in Australia:
Most business gas plans usually include non-seasonal single rate tariffs – meaning usage rates stay the same regardless of the time of day or year.
However, distributors may offer seasonal tariffs in some states. A seasonal rate tariff means your usage rates differ between peak season (i.e. winter) and off-peak season. Specific dates for these tariffs vary between distributors and states.
Market offers are available in most Australian states and territories to varying degrees, except for regional Queensland, the Northern Territory and Western Australia (outside of Perth).
Your tariff is determined by how your business is wired, based on what appliances your business runs day to day, and how your meter(s) is configured. You can discuss your options with your retailer or compare retailers to see if a better price or discount is available to you.
You might have to pay a an ‘exit’ or ‘early termination’ fee if you have fixed rates and cancel your contract during the benefit period. Check your contract terms and conditions to see whether the cancellation fee applies to you.
For business customers wanting to sign up for a new gas or electricity plan at a new business premise or switch to a plan that fits better, you can access a range of quotes from Australian energy retailers using our free online energy comparison tool.
Your existing account transfers to your new account without disrupting your supply– it’s all done remotely. The only thing that changes is your retailer’s customer service and the price you pay on your new plan. If you’re moving premises, contact your existing retailer so they can disconnect you power the day after you leave. Be sure to give your new energy retailer at least five days’ notice in advance to ensure you’re connected once you move.
Once you agree to a new energy contract, you typically have a cooling-off period of ten working days. A cooling-off period means you can exit your contract without incurring any exit or cancellation fees.
Not happy with your energy bill or think you can find a better deal? You’re in the right place!
Try our online comparison tool and compare a host of Australian energy retailers on one page.
Simply enter your postcode and a few other relevant details, and you can compare tariffs, rates and retailers in just minutes. If you decide to switch, we’ll handle the changeover. Find out why it pays to compare today!