Author: Nick Halaris, Managing Director - Electricity Brokers
As someone who’s spent over two decades navigating the ever-changing landscape of energy markets and now heading up Electricity Brokers, I’ve seen countless businesses and homeowners fall into the same trap…complacency.
The truth is, in Australia’s complex and often confusing energy market, complacency can be costly. But it doesn’t have to be. With a little effort, and the right guidance, you can turn the tables in your favour.
The True Cost Of Energy In Australia
Australia’s energy market is one of the most volatile globally, with prices frequently fluctuating due to various factors. These include international demand, local supply constraints, and regulatory changes. In the last 12 months, electricity and gas prices have shifted significantly. Residential electricity prices rose by an average of 9.8% in 2023, according to the Australian Energy Regulator. Gas prices surged by nearly 20% in some regions.
For businesses, the situation is even more pressing. Business electricity prices rose over 15% on average in Australia during 2023. Some industries faced hikes up to 25%. These increases directly impact your bottom line, affecting both households and businesses. Despite rising costs, many Australians still overpay for energy.
Why Are We Overpaying?
One of the main reasons people overpay for energy is a lack of understanding. Energy bills are notoriously complex, filled with jargon and line items that make it difficult to decipher what you’re actually paying for. This confusion leads to inaction. After all, if you can’t understand your bill, how can you challenge it?
For businesses, this issue is particularly costly. According to a report by the Australian Competition and Consumer Commission (ACCC), up to 30% of small and medium-sized enterprises (SMEs) in Australia are on outdated electricity plans, resulting in them paying up to 20% more than necessary. This overpayment is largely due to businesses not regularly reviewing their energy contracts, often missing out on newer, more competitive business electricity prices available in the market.
Moreover, many energy consumers are on outdated plans, often because they haven’t reviewed their contracts in years. Energy providers count on this inertia, keeping customers on plans that may have been competitive years ago but are now far from the best deal available. This is especially true for businesses, where failing to review and update electricity contracts can lead to significant financial waste. Cue Electricity Brokers.
The Power Of A Second Opinion
In an industry as complex as energy, getting a second opinion can be a game-changer. Just as you wouldn’t rely on a single diagnosis for a serious health issue, you shouldn’t take your energy provider’s rates at face value. A thorough review of your energy bill by an expert can uncover hidden fees, identify opportunities for savings, and provide peace of mind that you’re not being overcharged.
At Electricity Brokers, we’ve built our reputation on helping Australians navigate these complexities. With our in-depth knowledge of the market, we can provide the clarity you need to make informed decisions. We’ve seen clients save thousands of dollars a year simply by switching to a plan better suited to their usage patterns.
The Importance Of Regular Reviews
The energy market is dynamic, with prices and plans constantly evolving. What was the best deal six months ago may no longer be competitive today, especially when it comes to business electricity prices. This is why regular reviews of your energy plan are essential.
By routinely comparing your current rates with other offers in the market, particularly the latest business electricity prices, you can ensure that you’re always getting the best deal. This doesn’t mean you need to switch providers every few months, but it does mean staying informed and being willing to make a change if necessary.
How To Conduct An Energy Review
Conducting an energy review might sound daunting, but it’s simpler than you might think. Here’s a quick guide:
- Collect Your Bills: Gather your electricity and gas bills from the last 12 months. This gives you a clear picture of your usage patterns and costs over time.
- Understand Your Usage: Look at your peak and off-peak usage, and identify any patterns. Are you using more energy during certain months? Are there opportunities to shift usage to off-peak times?
- Demand Charges: are you being charged demand changed by the network without realising?
- Switchboard Efficiency: Often an overlooked element in most audits assessing the efficiency of your switchboard can save you significantly.
- Compare Rates: Use online comparison tools or a consult with an energy broker to see if there are better rates available for your usage patterns.
- Review Contract Terms: Check the terms of your current contract. Are you locked into a fixed-term agreement? Are there exit fees if you switch providers?
- Consider Renewable Options: With the growing focus on sustainability, many providers now offer green energy plans. These can be cost-effective while also reducing your carbon footprint.
- Get Expert Advice: If all this sounds like too much, consider enlisting the help of an expert. A professional energy broker can do the heavy lifting for you, ensuring you’re on the best possible plan.
The Role Of Renewable Energy
Renewable energy is no longer a niche market. With government incentives and falling technology costs, more Australians are turning to solar, wind, and other renewable sources to power their homes and businesses. In fact, as of 2023, nearly one in three Australian households have solar panels installed, making Australia a world leader in rooftop solar adoption. For businesses, particularly SMEs and Commercial & Industrial (C&I) sectors, this trend is equally significant.
Switching to a renewable energy plan or investing in solar panels can significantly reduce your business electricity prices in the long term. The Australian Energy Market Operator (AEMO) reports that businesses with solar installations can reduce their electricity bills by up to 50%, depending on their energy consumption patterns. Moreover, as more C&I companies integrate renewable energy solutions, they not only achieve cost savings but also shield themselves from the volatility often seen in business electricity prices.
In addition to lowering your business electricity prices, renewable energy options offer protection against fluctuating market rates. By generating your own power, you reduce reliance on the grid, which can be especially beneficial given that the Australian Energy Regulator (AER) has noted a 15% increase in business electricity prices for some sectors over the past year. Moreover, investing in renewables also aligns your business with broader sustainability goals, appealing to increasingly eco-conscious consumers and clients.
Don’t Wait For Your Next Bill Shock
Energy prices are expected to continue rising, driven by factors such as increased demand for electricity, the phase-out of coal-fired power stations, and investments in renewable energy infrastructure. Waiting for your next bill to act could mean paying even more than you are now.
Instead, take control of your energy costs today. Upload your latest bill to Electricity Brokers, and let our experts give it a thorough review. We’ll provide you with a clear, straightforward assessment of your current rates and identify any potential savings.
Take Control Of Your Energy Costs
In a market as complex as Australia’s, complacency is costly, especially when it comes to business electricity prices. By regularly reviewing your energy plan, staying informed about market trends, and seeking expert advice, you can avoid overpaying for electricity and gas. Even if you’re currently under contract, it’s worth engaging an energy broker to help renegotiate your existing arrangement and secure better business electricity prices. The process is easier than you might think, and the savings can be substantial.
Don’t let confusion keep you on an outdated energy plan. Upload your bill today, and see how much you could be saving with a second opinion from Electricity Brokers.
Nick Halaris
Managing Director
