Business energy prices
What actually shapes the rate a business is quoted
No two commercial quotes are built the same way. Here is what goes into a p/kWh rate, and why the same postcode can produce different numbers for different businesses.
The cost stack
Four layers behind every unit rate
Largest share
Wholesale energy
The cost of the electricity or gas itself, bought by the supplier ahead of your contract start based on market conditions at that time.
Fixed daily
Network charges
Charged by the regional electricity distributor or gas transporter for maintaining the pipes and wires that deliver your supply.
Government-set
Levies & obligations
Includes the Climate Change Levy and costs suppliers pass through relating to renewable and low-carbon obligations.
Variable
Supplier operating cost & margin
Covers billing, customer service and the supplier's margin — this is one of the few parts of the stack that varies most by who you buy from.
Why quotes differ
Seven variables that move the number you're quoted
Two businesses on the same street, using a similar amount of energy, can still be offered different rates. These are the usual reasons.
- 01
Wholesale market conditions on the day your contract is priced
- 02
Annual consumption and how predictable your usage pattern is
- 03
Meter type — half-hourly supplies are priced differently to non-half-hourly
- 04
Contract length — 1 year through to 5 year fixes carry different risk profiles
- 05
Payment method and credit terms offered
- 06
Your regional distribution network operator
- 07
How far ahead of your renewal date you are buying
Timing matters
The day you buy is part of the price
Buying early
Renewal quotes are typically available from 6–12 months before your contract ends. Buying early gives you visibility of market movement over a longer window and time to compare properly rather than reacting under deadline.
Buying at the last minute
Leaving a decision to the final weeks limits your options to whatever is available that day, and risks a lapse onto deemed or out-of-contract rates if nothing is signed in time.
See how renewal timing works →Common questions
Pricing questions we hear most
What affects business electricity prices?+
Wholesale market conditions at the time you contract, your annual consumption, your meter profile, how predictable your usage pattern is, contract length, payment terms, your location's distribution charges and non-commodity costs such as network and levy charges. Two businesses on the same street can be offered different rates.
Why are business energy contracts fixed?+
Most commercial supply is bought on a fixed-term basis so the supplier can hedge the energy in advance. In return the business gets a known unit rate for the term. Unlike domestic supply, commercial fixed contracts generally cannot be exited early without agreement, which is why the renewal window matters.
What is a deemed contract?+
A deemed contract applies when a business is taking supply without an agreed contract — for example after moving into new premises or after a fixed term ends. Deemed rates are set by the supplier and are typically higher than contracted rates, so they are worth moving off promptly.
See what your business would actually be quoted
We'll walk through the cost stack for your specific supply, not a generic rate card.