How to Compare Business Electricity Quotes
A quote is only comparable if it is built on the same site, the same usage and the same terms. Most disappointing comparisons fail on one of those three, not on the rate itself.
Start with the site, not the rate
Every business electricity rate is tied to a site: its distribution network, its network tariff and its metering. A rate quoted for one address is not necessarily available at another, even a few streets away, because the network and tariff can differ.
Before comparing offers, confirm the address, the NMI on the bill and the network tariff code. If a quote does not state which site it applies to, it is not yet a quote you can compare.
Compare like with like
Check the period each quote is based on. A quote built on a summer quarter and one built on a full year will produce different annual estimates even at the same rates. Where possible, use twelve months of billing data, or at least a period that includes your busiest season.
Both quotes should include the daily supply charge, any demand charge, and the same treatment of GST. A headline usage rate on its own can hide a higher fixed charge or a demand component that only appears on the first bill.
Read the terms behind the rate
A rate sits inside a contract. Ask about the contract length, whether the rate is fixed or variable, what happens at the end of the term, and how much notice you must give. Auto-renewal and notice periods are where a good rate can become a bad outcome.
Ask too about pass-through clauses: which charges can change during the term, and on what notice. Network charges change periodically, and a contract that passes them through is not dishonest, but it should be understood before signing.
Get more than one written offer
Two or three written offers, each stating its assumptions, are enough to see whether a price is competitive. Verbal comparisons are difficult to verify and easy to misremember; ask for the offer in writing, including the rates, the fixed charges and the term.
Then compare on the estimated annual cost for your site, not on the advertised rate. The plan that wins on the rate can lose on the supply charge or on how it treats your usage shape.
A short pre-signature checklist
Site and NMI correct; network tariff confirmed; usage period stated; supply charge and demand included; contract length and end date known; notice period and renewal terms known; pass-through charges understood; the offer in writing.
If any of those is missing, the comparison is incomplete rather than unfavourable. Ask for the missing detail before deciding.
Put it into practice
Upload an electricity bill to run a comparison on your site's actual usage, or read more business electricity guides.
Related guides
- How to Read a Business Electricity Bill
- Time-of-Use, Flat and Demand Tariffs Explained
- Network Charges vs Retail Charges: Who Charges You for What
- Moving Premises: A Business Electricity Checklist
- Do You Need an Energy Broker for Your Business?
- Demand Charges on a Business Electricity Bill
- Switching Business Electricity Retailer
Business electricity by state
Network operators and market rules differ across Australia, so the mechanics described above play out differently depending on where your site is.
- Business electricity in New South Wales
- Business electricity in Victoria
- Business electricity in Queensland
- Business electricity in South Australia
- Business electricity in Western Australia
- Business electricity in Tasmania
- Business electricity in Australian Capital Territory
- Business electricity in Northern Territory
Electricity networks
Every business site connects to one distribution network. Knowing which one helps you read a quote and check that a plan is actually offered at your address. See every network or pick one: