Have you ever looked at your power bill and thought, “How did it get this high?” You’re not alone. Plenty of business owners pay more than they need to, simply because the bill is confusing and there’s never enough time to dig into it.
Here’s the thing: a plan with a low usage rate isn’t always the cheapest. Daily charges, expired discounts and extra fees can quietly push the total up. The good news is that you don’t need to be an energy expert to get on top of it. You just need a clear way to look at your bills and a few simple habits.
Start With the Bills You Already Have
Before you look at any new offers, get to know what you’re paying now. Your bills hold most of the answers.
Gather a Year of Bills
Pull together your last 12 months of bills. A full year matters because your usage probably changes with the seasons. For each bill, jot down:
- The number of days in the billing period
- How much power you used, shown in kilowatt hours (kWh)
- Whether the meter reading was actual or estimated
- The daily supply charge
- The usage rates
- Any extra charges, such as demand charges
Keep all of this in the same spreadsheet or folder you use to manage your small business finances. Power is a regular cost, just like rent or insurance, and changes are much easier to spot when you see it next to your other expenses.
Know the Two Main Charges
Most business power bills have two main parts:
- Supply charge: a fixed daily fee you pay whether your doors are open or closed.
- Usage charge: what you pay for each kWh you actually use.
This is where many people get caught out. A plan with a cheap usage rate but a high daily charge can end up costing more than a plan with the opposite mix.
Some businesses also pay a demand charge. This is based on the highest burst of power you use in a short window, rather than your total use. If you see one on your bill, check your plan to see exactly how it’s worked out.
Check When You Actually Use Power
Some plans charge different prices at different times of day, usually called peak, shoulder and off-peak. The hours for each can vary between retailers. Look at your bill to see when your power use actually happens. Don’t assume it all falls within your opening hours, because fridges, servers and timers often run around the clock.
Work Out What Each Offer Really Costs
Once you understand your own bills, you can compare offers fairly.
Use the Same Numbers for Every Quote
The easiest mistake is comparing offers on different terms. Use the same yearly usage and the same number of days for every quote. Add up the usage costs, supply charges and any other fees. Then take away only the discounts you’re confident you’ll actually get.
A Quick Example
Let’s say your business uses 20,000 kWh over a year. Here are two made-up offers. They include GST and have no extra fees or discounts. They aren’t real offers, just an example.
| Offer | Usage rate | Supply charge | Yearly cost |
|---|---|---|---|
| Offer A | AUD 0.30/kWh | AUD 1.50/day | AUD 6,547.50 |
| Offer B | AUD 0.29/kWh | AUD 2.50/day | AUD 6,712.50 |
Offer B looks cheaper at first because of its lower usage rate. But once you add the higher daily charge, it costs AUD 165 more over the year. That’s why the full yearly cost matters more than the headline rate.
Be Careful With Discounts
Some discounts only apply if you meet certain conditions, like paying on time. If your cash flow goes up and down, it’s safer to budget using the price without the discount. That way, a late payment won’t blow out your costs.
Read the Contract Terms
A fixed-term contract tells you how long the deal lasts. It doesn’t always mean your prices are locked in. Before you sign, ask a few simple questions:
- Which prices can change during the contract?
- Is there a fee if I leave early?
- What happens when the contract ends? Does it roll over automatically?
Ways to Shop Around
You’ve got a few options, and it’s worth trying more than one.
Ask Your Current Retailer First
It sounds simple, but a quick call can pay off. Ask your current retailer if they have a better plan for how your business uses power. Sometimes there’s a cheaper option you were never told about.
Try a Government Comparison Site
Government comparison websites let you check plans for free. Energy Made Easy covers small businesses in New South Wales, Queensland, South Australia, Tasmania and the ACT, while Victoria has its own site called Victorian Energy Compare. These are a good way to get a feel for what’s on offer.
Get Help From a Broker
If you’d rather not do it all yourself, a broker can take the legwork off your hands. For example, you can compare business electricity prices with Choice Energy, which reviews your bills, usage and current contract, then takes your details to its panel of retailers. It says it doesn’t charge you directly because the winning retailer pays it.
Whichever broker you speak to, ask which retailers are on their panel and how they get paid. Then read the written offer carefully before you sign anything.
Small Habits That Keep Bills Down
Getting a good deal is only half the job. Your habits and your business can change, so keep an eye on things.
Cut the Easy Waste
Start with the simple stuff:
- Switch off lights and equipment that don’t need to run after hours.
- Check that timers match your actual trading hours.
- Keep equipment clean and serviced so it runs efficiently.
Just don’t switch off anything essential, like fridges or security systems. Lighting is another easy win. Government guidance says LED lights can use up to 75% less energy than old halogen bulbs. Keep in mind that’s about the lights themselves, not your whole bill.
Track Usage, Not Just Dollars
A lower bill doesn’t always mean you used less power. It could be a cheaper rate, a one-off rebate or a shorter billing period. Each month, write down your kWh, the number of billing days and the total cost. Also note anything unusual, like a heatwave or longer opening hours. This helps you see what’s really changing.
Put Someone in Charge of the Review
Things slip when nobody owns them. Choose one person, even if that’s you, to keep track of contract end dates and when any discounts expire. Set a reminder well before your contract ends so you have time to look at new offers instead of being rolled onto a pricier plan.
Conclusion
Paying less for power isn’t about chasing the lowest rate you can find. It’s about understanding your bills, comparing offers on the same terms and checking the fine print before you commit.
Once you’ve done the groundwork, the rest is easy. Keep an eye on your usage, review your plan regularly and give someone the job of watching the dates. A little attention now can save your business a lot over the year.
FAQs
How often should I review my power plan?
Once a year is a good starting point. It’s also worth checking whenever your retailer announces a price change or a discount is about to run out.
Is a lower usage rate always the cheaper option?
No. A high daily supply charge or extra fees can cancel out a low usage rate. Always work out the full yearly cost using the same usage figures for each offer.
Can I get a better deal without switching retailers?
Sometimes, yes. Ask your current retailer whether they have a plan that better suits how your business uses power, then compare it with other offers.
Does a broker check every retailer on the market?
Not always. Most brokers work with their own panel of retailers, so ask which ones are included and how the broker gets paid before relying on their results.
