Energy bills are one of the highest fixed costs for many retail shops, cafes, restaurants, and hotels. If you’re running a business that relies on lights, refrigeration, air conditioning, or commercial kitchen equipment, even small increases in energy rates can lead to large spikes in monthly expenses.
However, many business owners overlook one of the most effective ways to manage these costs, comparing Business Electricity Plans.
This guide walks through practical steps retail and hospitality businesses can take to reduce their energy bills without cutting service or quality.
What Should I Look At In My Current Energy Usage?
Start by checking your past 12 months of energy bills. Focus on:
- Average monthly usage in kWh
- Demand charges (if any)
- Time-of-use breakdown (peak vs off-peak)
- Seasonal fluctuations (e.g. heating in winter, cooling in summer)
- Billing frequency (monthly or quarterly)
- Supply charges vs usage charges
Hospitality businesses typically have different usage patterns to retail. A restaurant may use more energy during dinner hours, while a clothing store may consume more during the day. Matching your usage profile to the right tariff is key.
Why Do I Need a Baseline Before Comparing Energy Providers?
Once you know your average usage, it becomes easier to benchmark offers during an energy comparison. Without this, you may be comparing plans that are not suitable for your actual business needs.
Note the following before you compare:
- Your postcode or NMI (National Meter Identifier)
- Whether your meter is smart or basic
- Any contract lock-in periods or exit fees
- Current peak and off-peak rates
Avoid assuming that residential or general usage plans will work for your business, commercial plans are designed with different structures.
Should I Choose a Fixed or Variable Rate Plan?
Businesses often choose between two main types of plans:
| Plan Type | What It Means | Best For |
| Fixed Rate | Rate per kWh stays the same during contract term | Businesses wanting predictability |
| Variable Rate | Rate changes with market conditions | Businesses comfortable with short-term risk |
Fixed rate plans are common in retail due to budgeting ease. However, in some cases, variable plans can offer better value if energy usage is flexible.
Doing a proper Electricity and Gas Comparison will help you see which model fits your business goals better.
When Should I Consider Time-of-Use Energy Tariffs?
If your business operates mostly outside peak hours, a time-of-use tariff might be worth exploring. For example:
- Cafes that close by 3 PM can avoid peak evening rates
- Hotels that use high volumes of hot water during off-peak times can save significantly
Ask each provider to show how their time-of-use tariffs would work against your actual usage pattern. If you’re using a comparison tool like the one from Connect With Us, you can get this breakdown in a clear format.
Are Big Discounts Always Better?
Some providers advertise large discounts (e.g. 20% off usage), but these often apply only if you:
- Pay on time
- Sign up online
- Stay for 12 months or more
Focus on the base rate in cents per kWh and the daily supply charge. These are the real indicators of what you’ll pay.
Make sure any discounts are:
- Ongoing, not introductory
- Applied automatically, not based on unrealistic conditions
- Clearly outlined in writing
This is where a good energy provider comparison can help you identify genuine savings, not just headline numbers.
Can I Save By Bundling Electricity and Gas?
If your business uses both electricity and gas, common in restaurants, bakeries, and laundromats, some providers may offer bundled plans. These plans:
- Reduce admin time with a single bill
- May offer small combined discounts
- Simplify supplier relationships
Still, don’t assume bundles are always cheaper. Run a proper electricity and gas comparison separately, then as a bundle, to check what actually saves money. If you’re unsure, Connect With Us can do the side-by-side comparisons for you without pressure or sales tactics.
Is Customer Service Just as Important as Price?
While cost is a big factor, don’t ignore service. Poor support can cost your business time and money. Things to consider:
- Do they offer a dedicated business support line?
- Is the call centre based in Australia?
- What’s the average wait time for customer support?
- Are outages handled quickly and clearly?
If something goes wrong, like a billing error, tariff change, or meter issue, you want a provider that resolves things without wasting your time.
Are Long Lock-In Contracts Worth It?
Some energy providers lock businesses into 24- or 36-month contracts. While this can seem stable, it also limits your flexibility.
You should always ask:
- Can I exit early without penalty?
- Will the rates stay the same throughout?
- Will I be warned before any price changes?
Many providers offer shorter 12-month terms or month-to-month plans that give you more control. This flexibility is useful if your lease ends soon or your energy needs may change.
What Should I Do After Switching Energy Providers?
Once you Switch Electricity Providers, don’t set and forget.
Use your new bills and any online portal to check:
- If the rates match what was agreed
- How your usage trends over time
- If your actual charges match the provider’s quote
This helps you confirm the switch was worthwhile. It also flags any billing issues early.
If you need help switching, Connect With Us can walk you through the process. There’s no disruption to supply, and no need to contact your old provider, it’s all managed for you.
What Day-to-Day Energy Saving Steps Work for Retail and Hospitality?
Beyond choosing the right provider, there are day-to-day actions that retail and hospitality businesses can take to cut energy costs:
Lighting
- Replace halogens with LEDs
- Use timers for window displays
- Install sensors in back-of-house areas
Heating/Cooling
- Service air conditioning units regularly
- Keep doors closed to maintain indoor temperature
- Use blinds to reduce direct sunlight
Kitchen Equipment
- Turn off equipment during downtimes
- Avoid peak-hour use of high-demand appliances
- Maintain refrigeration seals and filters
Staff Engagement
- Train staff to turn off unused lights and devices
- Encourage reporting of faulty or energy-hungry equipment
- Display energy use goals in staff areas
These actions won’t eliminate your bill, but they can reduce it by 10–20% when done consistently.
What Should I Focus on Before Changing Providers?
| Area | Action Point |
| Usage Analysis | Review kWh, demand charges, and time-of-use data |
| Provider Selection | Compare energy providers |
| Plan Type | Compare fixed vs variable rates |
| Contract Terms | Avoid long lock-in contracts unless needed |
| Bundling Options | Evaluate electricity and gas comparison deals |
| Provider Support | Confirm service availability and issue handling |
| Switching Process | Use tools like Connect With Us to switch electricity providers easily |
| Efficiency Upgrades | Invest in lighting and appliance improvements |
| Staff Training | Promote good energy habits daily |
What’s the Best Way to Get Started Saving on Energy?
Retail and hospitality businesses can always be smarter about energy. Getting the right plan, from the right provider, matched to your actual usage, makes a noticeable difference.
Start with an accurate electricity provider comparison in Sydney, either on your own or through a service like Connect With Us.
Then, once you’ve picked the right offer, switch electricity providers in a way that doesn’t interrupt your operations. From there, track results and make gradual in-store changes to continue reducing costs.
Each & every dollar saved on energy is a dollar that can go back into growing your business — whether that’s more staff, better stock, or marketing.