Australian Businesses Face Rising Electricity Costs
Electricity costs in Australia are rising again, putting pressure on businesses trying to manage overheads. The latest draft determinations from the Australian Energy Regulator (AER) and Essential Services Commission (ESC) predict further increases in 2025. Businesses in NSW and Victoria are among the hardest hit.
Recent data from the AER (2024) reveals that businesses in NSW could see electricity price hikes of up to 17%. In Victoria, the ESC (2024) has flagged similar concerns, with some retailers proposing increases above 12% (Source: the Nightly).
According to Nick Halaris, MD of Electricity Brokers Australia:
“Businesses can no longer afford to be passive about electricity costs. With price hikes on the horizon, now is the time to compare business electricity rates and lock in better deals.”
Why Are Business Electricity Prices Increasing?
Several factors are driving up business electricity prices in Australia:
- Wholesale Market Volatility: High demand, ageing infrastructure, and supply constraints push up wholesale electricity costs.
- Network Costs: Transmission and distribution charges continue to rise as upgrades to ageing infrastructure are needed.
- Government Policy & Renewable Transition: While renewables are the future, the transition comes with short-term price fluctuations.
- Retailer Price Adjustments: Energy retailers pass increased costs onto businesses, impacting those on variable rate contracts.
For businesses in NSW, VIC, and across Australia, these rising costs make it crucial to secure competitive electricity contracts.
Electricity Brokers: Your Key to Lower Energy Costs
Electricity brokers in NSW, VIC, and across Australia work directly with retailers to find the best deals for businesses. Unlike standard comparison sites, brokers negotiate tailored rates based on actual energy usage.
Benefits of Using an Electricity Broker:
- Access to Lower Rates: Brokers have access to wholesale pricing and exclusive business energy deals.
- Contract Negotiation: They handle contract terms, ensuring no hidden fees or costly rate structures.
- Ongoing Management: Brokers monitor the market and recommend changes when better rates become available.
- Time Savings: Businesses avoid the hassle of comparing complex tariff structures across multiple retailers.
Supporting Data: Businesses that use electricity brokers save an average of 18% per year on energy costs (Australian Energy Regulator, 2024).
Looking Back to Look Forward…Business Electricity Prices last year: What You Need to Know
A snapshot of recent electricity prices shows the impact of rising costs on Australian businesses:
- NSW Business Tariffs (2024): Small businesses on standard plans pay 35-42c/kWh, up from 30-38c/kWh in 2023 (AER)
- VIC Business Tariffs (2024): Rates now range from 29-37c/kWh, up from 26-33c/kWh in 2023 (ESC)
- Commercial Demand Charges: Some retailers charge demand tariffs exceeding $20/kVA per month, significantly increasing costs for high-usage businesses
Given these trends, businesses need to lock in rates before further price rises take effect.
How to Compare Business Electricity Rates in Australia
- Analyse Your Current Usage
Check your electricity bills for usage patterns, peak demand charges, and tariff details. - Consult an Electricity Broker
A broker will assess your usage and compare business electricity rates across multiple retailers. - Evaluate Fixed vs. Variable Rates
Fixed contracts offer price stability, while variable rates may provide savings if market prices drop. - Look for Incentives & Discounts
Some retailers offer discounts for early payments or bundling electricity with gas. - Sign the Best Contract & Monitor the Market
Lock in a competitive rate but stay informed about future price changes.
Business Electricity in NSW vs. VIC: A State-by-State Comparison
Electricity costs vary between NSW and Victoria due to different market structures and network costs.
NSW Business Electricity Overview
- Higher wholesale electricity prices due to supply constraints
- Network costs are increasing, driven by transmission upgrades
- Large energy users may face additional demand charges
VIC Business Electricity Overview
- More competitive retail market, offering businesses better negotiation leverage
- Government incentives for energy efficiency may help lower costs
- Lower network charges compared to NSW
Businesses in both states should work with electricity brokers to navigate these differences and find the best rates.
Future Outlook: What’s Next for Business Electricity Prices?
According to the Australian Energy Market Operator (AEMO, 2024), electricity prices could remain volatile due to:
- The ongoing transition to renewables
- Potential coal plant closures affecting supply
- Grid stability challenges increasing network costs
However, businesses that take action now, by locking in competitive rates through an electricity broker, can protect themselves from future price hikes.
Act Now to Secure the Best Business Electricity Rates
Electricity costs are rising across NSW, VIC, and Australia, making it essential for businesses to take control of their energy expenses. Working with an electricity broker ensures you secure the best commercial business energy rates, avoid excessive charges, and maintain predictable costs.
As Nick Halaris, MD of Electricity Brokers Australia, advises:
“Electricity is a major expense for businesses. Those who compare rates and negotiate contracts now will be in the strongest position for the future.”
Don’t wait for electricity prices to climb further. Contact Electricity Brokers Australia today for a tailored energy comparison and see how much your business can save.
