Making sure that you’re on the right energy plan for your circumstances is one of the most important things you can do to help manage your energy bill.
We recommend checking if your small business could be on a better energy deal once a year.
In this article, we outline the different types of energy plans and the steps you can take to get the best energy plan for your business.
Here are five steps you can take to make sure you’re on the best energy plan:
1. Understand your current energy plan
The first step is to know what energy plan you’re on, including what tariff/s and rates you’re receiving, as well as any other specific features or discounts. Your energy bill will tell you the name of your plan, as well as other key pieces of information.
As a start, it’s a good idea to find out what type of tariff you are on, as this will affect how you are charged for your energy use. Here’s a quick summary of the different tariffs you may see on your bill.
A flat rate tariff (also known as a single rate) is a fixed price you pay for the energy you use, whatever time of day you use it.
Demand tariffs are based on the highest amount of electricity you use during a given period in your billing cycle.
A time-of-use tariff means you pay a different amount for electricity at different times of the day. These are typically separated into peak, off-peak, and shoulder periods.
You might be able to save money on this kind of tariff if:
- You can easily change when you use your energy to times when prices are cheaper
- You have solar.
However, time-of-use tariffs will not work for everyone, and you need a smart meter to access one.
If you’d like more detailed information about the different parts of your bill and what they mean, read our article, What makes up the cost of a power bill?
2. Review your energy usage
Understanding when you use the most energy is a useful exercise to see where you can become more efficient. For example, understanding what time of day you typically use the most energy can help you understand if a time-of-use plan is right for you.
Undertaking an energy audit can also help you understand what is using the most energy in your business.
3. Contact your energy retailer
If you’ve been with an energy provider for a long time, they will likely have better deals that are now available. This means it’s important to contact your energy retailer to make sure you’re on the best deal for your circumstances.
Questions you can ask your retailer include:
- Am I on your best plan?
- Do you have a better offer that would suit my small business and our energy use?
- Am I eligible for any concessions or rebates?
- Am I paying any extra fees, such as for receiving a paper bill, or paying late?
- Can I pay my bill more often, and will my costs be estimated? (This can be helpful to manage your budget and avoid bill shock).
Don’t want to talk on the phone? Check your retailer’s website for any live chat functions or a contact email address.
4. Visit an energy comparison website
These websites are independent and list all the offers available to you from licensed energy retailers. To be listed on the website, the company needs to be an authorised retailer and be registered with the Australian Energy Regulator.
Location | Contact Details |
|---|---|
NSW, SA, ACT, TAS, or QLD | www.energymadeeasy.gov.au or call 1300 585 165 |
Victoria | www.compare.energy.vic.au or call 1800 000 832 |
Have your previous bill handy as you’ll be asked to upload it and/or need to refer to it. However, if you don’t have a bill available, or don’t want to upload your data, you can still use these tools based on estimates.
If you’re comparing electricity plans, you will be asked to provide your National Metering Identifier (NMI) – this is the unique number of your electricity meter for your business. You can find this on your bill.
Once you enter a couple of quick bits of information, the energy comparison website will give you a list of offers. Then you have two choices:
OPTION A: I will take the top recommendation
The easiest way to choose an offer is to look at the overall estimated price per month/quarter/year that the comparison website gives you.
OPTION B: I will do more research myself
If you want to take more control, look at different types of offer yourself and make up your own mind, remember that there are sometimes additional fees to look out for. Potential additional fees can be for things like receiving your bill in the mail, not paying your bill on time, or for using a credit card to pay your bill.
Some plans also have incentives to encourage you to sign up, such as a discount on your bill, sign-up credit for new customers, or frequent flyer points. This can be a good thing (make sure to check you are eligible first though!) but be careful to look at how long the discount period lasts for, and how much your bill will increase once the discount period has ended. This is called a 'honeymoon period'.
5. Understand what the key factors are to compare
The top things to consider when comparing an energy deal are:
- Whether you’re on a fixed or variable charge rate
- The type of tariff you’re on
- The ‘usage’ rate
- The daily ‘supply’ charge.
Read our factsheet, What makes up the cost of a bill? to understand what these terms mean.
For more information and tips on how to better manage your energy, visit Business.gov
