ShatabdiTo compare hospitality electricity costs in NSW, calculate what each offer would charge for the same venue usage over the same period. Include time-of-use rates, any demand charge, the daily supply charge and other fees. Compare the total on the same GST basis, then check contract terms and rate-change conditions.
For cafés, restaurants and pubs, trading hours are part of that calculation. A lower advertised rate may apply when little of your equipment is running. This guide explains what to compare and shows a worked example using the same electricity use on two different offers.
What determines electricity costs for a café, restaurant or pub?
The bill depends on how much electricity your venue uses, when it uses it and the charges in its retail agreement.
A café may prepare food and heat its coffee machine before opening. A restaurant may run cooking equipment, hot water and dishwashers together during dinner service. A pub may continue trading later, with refrigeration operating after closing. These are examples of operating patterns; the cost of each depends on the actual tariff and equipment schedule.
Use a full year of bills and usage history where available. It captures more of the seasonal variation than a single bill. If your trading hours, kitchen or equipment are changing, give the provider those details so the comparison can account for them.
How do preparation and closing time affect the comparison?
Put preparation, service and clean-down alongside the meter history. A breakfast café may heat equipment before customers arrive; a restaurant may keep dishwashers and hot water running after the last order. For a pub, compare busy weekend service with quieter weekdays and the refrigeration load that remains after closing.
When adding a dinner service, ask for two estimates: one using today’s measured trading pattern and another stating the extra hours and equipment assumed. This lets you see how much of the result comes from the offer and how much comes from the changed business.
Which electricity charges should hospitality businesses compare?
| Bill component | What to check |
|---|---|
| Usage | The rate per kWh and how much electricity you use at that rate |
| Demand, where applicable | The billed kW or kVA, measurement interval, eligible hours, look-back period and charging formula |
| Daily supply | The daily amount multiplied by the number of billing days |
| Other items | Metering and other fees, discounts, solar credits and their conditions |
| Agreement | Term, deposits, rate changes and any exit costs |
Use the NSW business electricity bill guide to locate the relevant information on your bill.
Time-of-use or flat rate: which suits your trading hours?
A time-of-use offer applies different usage rates at different times. Peak is usually the highest rate, off-peak the lowest, and shoulder an intermediate rate where offered. Multiply the kWh used in each band by that band’s rate.
A flat rate applies the same usage price at any hour. It makes the usage calculation easier, but it is not necessarily the cheapest option. Compare the whole bill using your venue’s electricity history.
There is no single peak schedule for NSW. Your retail offer specifies the hours, days and seasonal rules. Check where breakfast preparation, dinner service, cleaning and overnight refrigeration fall. Do not assume that all evening use is peak or all weekend use is off-peak.
A flat rate does not automatically remove demand charges. An offer can use one usage rate and still include a separate demand charge. Check both.
How do demand charges affect restaurant and pub bills?
Demand charges depend on the power drawn during the intervals specified by your tariff. They are separate from usage charges, which depend on the amount of electricity consumed.
When ovens, dishwashers, hot water and air conditioning run together, their combined load can increase demand. For a tariff using the highest eligible half-hour, the average power drawn across that interval matters.
An average load of 40 kW for half an hour uses 20 kWh. Those 20 kWh contribute to usage charges. The 40 kW may also be used in the demand calculation if it is the relevant billing demand. A momentary start-up spike does not establish a half-hour average.
Check whether your tariff measures kW or kVA, which intervals qualify and whether it uses the current month or a longer look-back period. The business demand charges guide explains the calculation.
Worked example: compare time-of-use with Cable
Here, a venue uses 6,000 kWh in 30 days, with 40% in peak periods and 35% in shoulder periods. Those service-hour loads make up most of its electricity use.
Illustrative Cable rate: 23c/kWh, above the 20c TOU off-peak rate. Actual pricing is set for the site. The battery supports flat-rate pricing by shifting electricity purchases towards lower-cost periods.
| Charge | Quantity | Time-of-useWith demand charges | Cable flat rateBacked by a battery | ||
|---|---|---|---|---|---|
| Rate | Total | Rate | Total | ||
| Peak usage | 2,400 kWh | 48c/kWh | $1,152.00 | 23c/kWh | $552.00 |
| Shoulder usage | 2,100 kWh | 30c/kWh | $630.00 | 23c/kWh | $483.00 |
| Off-peak usage | 1,500 kWh | 20c/kWh | $300.00 | 23c/kWh | $345.00 |
| Usage subtotal | 6,000 kWh | — | $2,082.00 | — | $1,380.00 |
| Demand | 40 kW × 30 days | 30c/kW/day | $360.00 | Absorbed by Cable | $0.00 |
| Supply | 30 days | $2.663967/day | $79.92 | $2.663967/day | $79.92 |
| Total for 30 days | — | — | $2,521.92 | — | $1,459.92 |
The Cable column is $1,062 lower over these 30 days: $702 from usage and $360 from demand. Peak and shoulder usage cost $747 less at 23c, while off-peak usage costs $45 more. For a venue with more overnight refrigeration and less evening trade, the balance would change.
These are illustrative electricity charges, including GST, not typical savings or a site quote. Both columns use the same supply input; other fees and contract costs are excluded. See how we built this example for the assumptions, exclusions and full calculation.
How to compare electricity offers for your venue
- Gather comparable information. Use the same usage history and period for each offer, ideally covering a full year. Include planned changes to your hours or equipment.
- Apply each offer’s rates. Check its time bands and demand formula; two offers may define their windows differently.
- Add the remaining charges. Include supply, metering and other fees, then account for applicable discounts and credits.
- Check the commitments. Review the term, deposit and return conditions, rate changes and early-exit charges. Include costs of leaving your current agreement.
- Compare the estimated annual totals. Use the same GST basis and retain the assumptions so you can see why the result differs.
How Cable compares with a conventional electricity offer
Cable funds, owns and operates a battery at suitable venues. It buys electricity in lower-cost wholesale periods and uses stored power when prices rise. Cable absorbs network demand charges; you pay one usage rate across the day plus daily supply. Your bill still varies with consumption.
For a café, restaurant or pub, discuss battery space, landlord consent and installation around service hours. Check any additional site-work costs. The standard installation does not keep the venue powered during an outage.
Cable serves suitable sites on the Ausgrid and Endeavour Energy networks in NSW. Joining requires at least six months of smart-meter data, though you can request a quote earlier. The initial term is three years, with annual CPI adjustments and other permitted rate changes. Check the offer’s deposit, return conditions and early-exit charges.
Hospitality electricity questions
Can a café and a restaurant pay different amounts for the same kWh?
Yes. Under time-of-use pricing, the distribution of usage across the rate periods affects the cost. Demand charges, supply charges and other fees can also differ. Compare the complete offers using each venue’s actual usage pattern.
Does a flat rate mean my electricity price cannot change?
No. “Flat rate” describes one usage price across the day. The agreement determines whether that rate can change over the contract term. Cable’s offer includes annual CPI adjustments and other permitted rate changes.
Can I compare offers if I have recently signed a contract?
You can compare costs while under contract. Before switching, check the current agreement’s exit charges and other obligations, and include them in the decision.
What if my venue does not have six months of smart-meter data?
You can request a Cable quote before you have six months of data. Joining currently requires at least six months; Cable will explain what is needed to progress.
Compare your venue’s costs with Cable
Share your contact and energy-account details, then authorise access to your usage history. Cable reviews the information and prepares a personalised offer showing the costs and terms for your venue.
Sources
Sources checked 3 November 2026. Comparison and pricing explanation updated 5 November 2026.
- AER: electricity tariffs — single-rate, time-of-use and demand pricing.
- AER: network tariffs — the distinction between network charges and retail offers.
- Australian Government: reviewing your business energy contract — comparing offers and demand-charge calculations.
- Ausgrid: 2026–27 network prices — the EA256 access charge used in the example.
- Cable FAQs and service areas — current published offer information and coverage.