Business Electricity Plans

What are Business Electricity Plans? 

Even if you run your household like a business, chances are you won’t have quite the same electricity needs as the cafe down the street or the nearest supermarket. So, businesses have their own type of Electricity Plans. 

Businesses that use less than a certain amount of electricity annually are small electricity customers. They’re essentially treated a bit like a really big house with usually the option to choose their plan (if that’s the norm in your state). Go above the threshold though and you’ll need to have a 1:1 with an Electricity Provider to hash out a deal. 

Source: Australian Energy Regulator – Am I a small energy customer?, Victoria State Government – Buying energy 

Do Business Electricity Plans have different tariffs? 

Different Business Electricity Plans will come with different tariffs and rates, just like the residential variety. You can expect to see your old friends ‘supply charge’ and ‘usage charge’ there too. (In case you need a re-introduction, your supply charge is a daily fee for staying connected while usage charges depend on how much electricity you use.) 

As far as tariffs go, you’ll probably spot ones like: 

• Flat or single, where no matter the time of day or week, you’ll just be charged the one rate for usage 
• Time-of-use, which comes with different rates depending on when you’re using electricity with higher rates typically applying to peak demand times 
• Controlled loads to help spark some savings in your electricity bill by keeping appliances that use a lot of electricity on a different meter and only on at certain times  

How much do Business Electricity Plans cost? 

Sure, comparing the electricity costs of a business can be a case of apples and oranges, but we get that sometimes you just want the cold hard stats. As a ballpark figure, assuming you’re using 20,000 kWh each year on a single-rate plan, you could be spending anywhere from $5,902 to almost double that — it comes down to what state or territory you’re in. 

But these numbers aren’t set in stone. Your bill will very likely look different. After all, there’s a lot of factors that go into that final fee number, like: 

• Usage charges  
• Supply charges 
• Metering and service charges 
• Regulated charges from the electricity market 
• Environmental charges 

It’s the usage charges though which will probably make the biggest impact on your bill. 

How much electricity does my business need? 

There’s no magic formula that will tell you exactly how much electricity you’ll use throughout the year. But you can make an educated guess. 

Your previous bills are a great place to start your guesstimations. The more you have, the more accurate your guess will hopefully be. Although, it does bear remembering that electricity prices do jump around. Sometimes this can be as much as 23% in a single year.¹ So, you might want to build some buffer into your estimate. 

If you’ve misplaced your old bills or your business is brand new, you can also eyeball some estimates based on the scale of your operation. For instance, if you’re running lots of electricity-hungry appliances and relying solely on the grid, you’re likely going to pay more than someone who’s picked out energy-efficient appliances and thrown solar into the mix too. 

You can also have a chat with someone who deals a bit more regularly in Business Electricity Plans: an Electricity Provider. They may be able to help you get a better sense of what to expect from your bill, as well as walk you through some of the plans you could choose from. 

How can my business save on electricity? 

Whether you want to save on electricity or just save on your electricity bill, there’s a few things you can try: 

• Invest in energy-efficient appliances 
• Upgrade your premises with high-quality insulation and effectively seal it too 
• Switch bulbs to LEDs 
• Generate your own power with solar panels 
• Business Electricity Plans to find a better value deal 

Keeping a close eye on your electricity usage could also help you spot other ways you could make some fixes, as well as give you a heads up if an appliance is on its way out.