If you run a small or medium business in Australia, electricity is probably one of your biggest operating costs. For cafes, pubs, cold stores, workshops and medical practices, it's often in the top three. And unlike rent or wages, it swings wildly from quarter to quarter with little explanation.
Australian electricity prices have grown roughly twice as fast as inflation over the last decade, despite Australia being one of the most energy-resource-rich countries on earth. That's not inevitable. There are structural reasons SMEs overpay, and structural ways to fix them.
Why your business electricity bill is so high
1. Demand charges
Many commercial electricity contracts include a demand charge based on your highest 30-minute power draw in a billing period. These charges penalise you for peak usage spikes, not your total consumption, and they can make up a significant portion of a commercial electricity bill. Many business owners don't even realise they're paying them. See our guide to reading your business electricity bill for a full breakdown.
2. Time-of-use pricing
Many commercial tariffs charge different rates depending on the time of day: peak, shoulder and off-peak. If your business operates during standard hours (as most do), much of your consumption falls in the most expensive windows.
3. The loyalty tax
Traditional retailers use sign-up bonuses to attract new customers, then quietly increase prices on steady, loyal ones. If you haven't switched retailers recently, you're almost certainly overpaying. Our bill explainer covers how to spot this on your invoice.
4. Price volatility and repricing
Most commercial contracts run 1-2 years. When yours expires, the new rate reflects whatever the wholesale market is doing at that moment. Your usage hasn't changed, but your bill can jump 20-40% overnight.
5. Complexity and inertia
The energy market rewards businesses that shop aggressively and understand tariff structures. Most SMEs don't have the time. You're running a business, not an energy trading desk. So you stay on uncompetitive plans and accept whatever your retailer offers at renewal.
6. Traditional cost structures
Traditional energy retailers use hedging contracts to be able to manage the risk they face when selling you energy at an agreed price, and buying that energy from a wildly volatile wholesale market. Particularly in Australia, these hedges are very expensive.
What you can do about it
Switch to a flat-rate plan
If your bill includes demand charges and time-of-use blocks, look for a retailer that offers a single flat rate per kWh. This eliminates the spike penalty and the peak/off-peak puzzle. A flat rate is predictable, easy to budget, and often cheaper for businesses that operate during the day.
Get a battery paired with the right plan
A battery paired with the right retail plan can flatten your demand profile, shift consumption away from expensive periods, and meaningfully reduce your bill. The battery charges when electricity is cheap and discharges when it's expensive, tackling both demand charges and time-of-use pricing at once.
The challenge has always been cost and complexity. Commercial battery systems require significant upfront investment, ongoing management, and the payback period can stretch for years. Newer models take a different approach, bundling the battery directly into a retail electricity plan so the business gets the savings without the capital outlay or operational complexity.
Lock in a long-term price
A 3-year fixed rate eliminates repricing risk entirely. You know exactly what you'll pay per kWh for three years. Combined with a flat rate, this turns electricity from a volatile cost into a fixed, budgetable line item. No more surprise bills at the end of the quarter.
Review your tariff
At minimum, check whether your current tariff is competitive at least once a year. The Australian Government's Energy Made Easy comparison tool covers small business plans in most states. Even a few percent improvement adds up fast.
What Cable Energy does differently
Cable was built for exactly this problem. We bundle a battery into your retail electricity plan at zero upfront cost, then sell you electricity on a single 24/7 flat rate, guaranteed for three years. No demand charges. No time-of-use blocks. No loyalty tax.
The battery charges when wholesale grid power is cheap and discharges when it's expensive. By timing the charge cycle to periods when the grid is renewables-rich, the battery also meaningfully reduces the carbon intensity of your electricity. We underwrite a bespoke price for your individual load shape, not a blunt portfolio average. Because our batteries are so effective, that price is structurally cheaper than traditional retailers can offer.
The result is that Cable customers typically save 20-40% versus their current retailer. Zero risk, zero complexity, and more cash to invest back into your business.
Check your savings. It takes a few minutes and there's no commitment.