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Energy Insights

The Hidden Costs of Not Locking in Your Business Energy Contract


Hey there, savvy business owner! You're all about slashing costs and boosting profits, right? But have you considered the ramifications of not securing a stable energy contract for your business? Dive into this eye-opening piece to discover the hidden costs lurking behind that decision.

The Energy Market: An Overview

Let's start by taking a quick look at the energy market in Australia. There's more to it than you might think!

Price Volatility

Buckle up, the energy market is a roller coaster! Prices can skyrocket or plummet based on a plethora of factors like global crises or local supply issues. Imagine running your air conditioners on a hot summer day and BAM! Your next energy bill is through the roof.

Seasonal Factors

And don't forget, seasons play a role too. Winter chill or summer heat can spike your energy consumption, and without a solid contract, you're at the mercy of market rates. Snowball fight, anyone?

Table: Seasonal Price Changes

SeasonAverage Price Increase (%)

Why You Need an Energy Contract


Signing an energy contract adds a layer of predictability. It's like setting your GPS before a road trip; you might hit some bumps, but you know where you're headed. Energy Action's energy buying solutions can guide you on this journey.


Sure, an upfront contract might seem like a hefty investment. But think long-term. It's a financial cushion, a safeguard against those market highs and lows.

Dangers of Not Having an Energy Contract

Sudden Price Hikes

No contract? You're playing with fire! You risk unexpected surges in energy prices. Like that time you ordered a specialty coffee and were shocked at the bill? Yeah, but tenfold.

Reduced Business Productivity

Higher energy costs mean cutting corners elsewhere. Maybe it's fewer staff hours, or perhaps a downgrade in materials. Either way, your business could take a hit.

List: Consequences of Not Having a Contract

  • Increased operational costs
  • Potential layoffs
  • Reduced customer satisfaction
  • Negative impact on profits

Case Studies: Real-life Scenarios

We've seen businesses get stung. For instance, a small restaurant saw their energy bill double during a cold winter. Without a contract, they had to cut staff and hours. Ouch! Check out more Energy Action case studies for eye-opening tales.

Energy Procurement Solutions

Green Auctions

Want to be green and savvy? Green auctions can secure renewable energy at competitive prices. It's like buying organic, but for your business's electricity!

Solar Auctions

Another radiant idea? Solar auctions. Lock in solar energy rates and bask in the sustainability glow.


  • What is an energy contract?
    • An energy contract is an agreement between a business and a supplier to provide energy at specific rates for a set period.
  • How does price volatility affect my business?
    • Volatility can lead to unexpected price surges that can drastically affect your operating costs.
  • Can renewable energy options save me money?
    • Yes, renewable energy auctions can offer competitive rates and long-term savings.
  • What happens if I don't have an energy contract?
    • You're subject to market rates, which can result in unexpected cost surges.
  • How can I get an energy contract?


Skipping out on an energy contract? Think again! From price hikes to operational hiccups, the risks are too high to ignore. It's time to lock in that contract and steer your business towards a more stable future.

Ready for change? Contact us.


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