With over 30 energy retailers competing in Australia, selecting the right energy suppliers to meet your business's electricity and gas needs can be daunting. However, taking the time to properly evaluate providers and account options using key criteria will lead you to the most cost-effective energy partner.
- Compare rates, contract terms, incentives, and bundled products side-by-side
- Scrutinise account support, billing and online management capabilities
- Assess supplier financial strength, longevity and service reputation
- Model different plan structures against your usage to determine best fit
- Watch for hidden fees, penalties and price escalations in the fine print
- Seek custom quotes tailored to your usage history and patterns
- Negotiate contracts and use energy consultants to further improve terms
- Re-tender routinely to keep suppliers competing for your business
Critical Factors to Compare in Business Energy Suppliers
Choosing a provider goes well beyond comparing advertised rates. Here are key considerations when evaluating suppliers:
- Understand time-of-use vs fixed rate plans and demand vs consumption-based charges.
- Compare effective all-in rates across plans factoring in discounts, fees, and price escalations over the contract term.
- Model different plan types based on your usage patterns and demand profile to identify the most cost-effective.
Contract Terms and Exit Fees
- Scrutinise contract duration, termination clauses, and exit fee implications. Seek shorter contracts with no exit fees.
- Assess what happens at contract end - automatic renewal vs. reverting to higher variable rates.
Incentives and Discounts
- Look for sign-up incentives like credits or rebates to offset switch costs - but verify eligibility.
- Compare conditional discounts like pay-on-time or bundling if realistically achievable.
Bundled Products and Services
- Evaluate all components in any bundles - are added products like solar, lighting, or batteries a cost-effective value-add?
- Compare online account management, billing, outage services, customer support availability, and response track record.
- Assess supplier financial standing, profitability, and years in business. Smaller retailers have higher insolvency risks.
Navigating Potential Provider Pricing Pitfalls
When comparing business electricity plans, watch for these hidden dangers in the fine print:
Low introductory prices that escalate sharply. Lock in fixed rates long-term if available.
Discounts requiring unrealistic billing/payment conditions or service bundling.
Costly Exit Fees
High termination fees if wanting to switch providers before the contract ends.
Plans that auto-renew at a higher variable rate without proactive re-negotiation.
Plans can impose demand charges making high use periods disproportionately expensive.
Watch for fees like credit card processing, late payment, disconnection that elevate real costs.
Expert Tips for Comparing and Choosing Suppliers
Follow these best practices to secure the optimal rates and service:
- Get Personalised Quotes - Provide usage data for accurate custom pricing tailored to your business.
- Model Plan Options - Plug usage into different rate plan scenarios to quantify true costs.
- Leverage Competition - Run quote tendering between multiple providers to force their best offers.
- Negotiate Rates/Terms - Seek better deals than advertised prices based on your loyalty, volumes, or contract length.
- Consult Experts - Leverage energy consultants or brokers to secure better pricing and contract protections.
- Regularly Re-Tender - Renegotiate with your current or alternate suppliers regularly to retain competition.
- Verify Everything - Double check all proposed terms, rates, and fees in writing before signing contracts.
Choosing business energy suppliers should be treated as seriously as selecting any other major supplier. Look beyond slick advertising to prudently compare retailers across pricing structures, contract terms, bundled offerings, operational capabilities, reputations and service track records. Investing time upfront to find the optimal partner ensures you maximise value and minimise energy costs over the long term.
Frequently Asked Questions
How much could I save by switching to a cheaper energy provider?
Average savings vary by region but businesses typically save 10-15% by comparing plans competitive and switching providers. Larger high-use customers can potentially save 20% or more.
What fees may I incur when switching energy providers?
If still under contract with your current provider, you may face early termination/cancellation fees. New providers sometimes charge small account establishment/transfer fees.
What information do I need from my current provider when comparing new suppliers?
Secure at least 12 months of usage and billing history including hourly/monthly consumption, peak demand levels, and current rates. Provide this data to new suppliers.
Should I consider renewable energy plans?
If sustainability is a priority, compare costs vs savings for plans offering partial or full renewable energy supply through RECs and carbon offsets.
What is the difference between fixed and variable rates?
Fixed rate plans lock in consistent per kWh rates for the contract term. Variable rates fluctuate based on the market so may be cheaper short-term but carry risk.
Conclusion: Comparing business electricity suppliers on total value requires looking beyond advertised prices to evaluate rates, contract terms, services and incentives in totality. Conducting due diligence upfront will help you secure the optimal energy partner for your company's needs.