For many Aussie retailers and small businesses, energy contracts are something you “set and forget”—until a jaw-dropping bill lands in your inbox. But here’s the truth most energy providers hope you don’t realise: energy contracts should be reviewed far more often than you think.
Quick Answer: You should review your energy contract every 12 months—or sooner if your usage pattern, business hours, or rates change.
Why should businesses review energy contracts regularly?
Energy markets shift. Tariffs fluctuate. Retailer discounts expire quietly. And yet, many businesses stay locked into outdated contracts that don’t match their current consumption.
Here’s what typically happens:
- Your introductory discount lapses after 12 months.
- New peak/off-peak structures are introduced.
- Market conditions lower wholesale prices, but your rate stays fixed.
- Your energy needs change (new fridge, HVAC system, expanded hours).
If you’re not reviewing at least once a year, you could be overpaying—by hundreds or even thousands.
Social proof tip: According to a 2023 Canstar Blue survey, 40% of small businesses saved money simply by switching energy providers after a review.
What signs suggest your energy plan needs reviewing?
Here are some red flags that should trigger a contract check:
- Your bill has increased for no clear reason.
- Your contract term has ended and you’re on a “standing offer”.
- You’ve upgraded appliances or changed operating hours.
- You’ve added solar panels or battery storage.
- You’ve never compared your plan to others.
One Sydney café owner I spoke with recently realised he was paying 31c/kWh on a plan that should’ve dropped to 24c post-contract—his discount had expired six months ago, unnoticed.
How do you know if your plan still suits your usage?
If you’ve installed a smart meter, you’re in luck. These devices track energy usage in half-hour intervals, allowing you to see when and how you use power.
You can then:
- Check if you’re using most electricity during peak times.
- See if a time-of-use or flat-rate tariff suits you better.
- Determine if you’re eligible for solar feed-in credits.
No smart meter yet? Ask your retailer for a free upgrade. In most Aussie states, they’re required to offer it upon request.
When’s the best time of year to review energy contracts?
While there’s no fixed season, there are key moments to act:
- Just before your contract expires
Don’t let it roll over into a standing offer. - Before summer or winter peaks
Usage usually spikes here due to heating and cooling—timing your contract can help lock in a cheaper rate. - When your business changes
New equipment, opening hours, or staff growth? Review immediately.
Also, if wholesale prices drop or government energy rebates are introduced, it’s a great time to reassess.
How often do energy rates actually change?
More than you’d expect. Retail energy rates can change quarterly—or more often—based on market conditions, especially for small businesses on variable contracts.
Energy retailers may also update their “reference price” offers throughout the year. If you haven’t compared your rate to the current reference benchmark recently, you could be paying more than you need to.
Authority note: According to the Australian Energy Regulator, businesses should actively monitor energy pricing updates to ensure they remain on competitive plans.
What’s the cost of not reviewing regularly?
Let’s break it down with a real-world example.
A Melbourne retail clothing store consuming 35,000 kWh per year stayed on an expired fixed-rate contract for 18 months. After finally reviewing, they realised:
- They’d missed out on a new market offer with a 15% discount.
- Their off-peak consumption made them ideal candidates for a time-of-use plan.
- They were being charged a daily supply charge 40% above market average.
Total overspend? $1,860.
That’s the hidden cost of inertia.
What should you compare when reviewing a contract?
Here’s a quick review checklist:
- Usage rate (c/kWh) — both peak and off-peak
- Daily supply charge
- Contract length and exit fees
- Discounts and how long they apply
- Solar feed-in tariff (if applicable)
- Billing and payment options
- Any renewable energy options or carbon offsets
Use comparison sites like Energy Made Easy or get a broker to help you review offers side-by-side.
Can reviewing help reduce retail store energy bills?
Absolutely. A strategic contract review doesn’t just lead to better rates—it can help restructure how your business consumes power.
For instance:
- You may shift your equipment use to shoulder or off-peak times.
- You may find you’re better suited to a demand-based tariff.
- You may unlock rebates or government programs you weren’t aware of.
The net result? Smarter decisions, smaller bills—and yes, significantly reduced operating costs.
For those looking to reduce retail store energy bills, reviewing your energy contract is the simplest first step.
FAQs
How do I know when my contract ends?
Check your latest bill or contact your retailer. Most include a “contract expiry date” on page 2.
Can I switch providers mid-contract?
Yes, but check for early exit fees. In many cases, retailers waive them if you’re switching to a better plan.
How long does a review take?
With online tools or a broker, less than 30 minutes. Think of it like comparing phone plans—except the savings are usually bigger.
Final Thought
Letting your energy contract sit idle is like paying RRP when there’s a sale sticker underneath. It might not hurt you right away—but it slowly chips away at your margins.
Reviewing once a year doesn’t just keep you competitive—it reminds you that power isn’t just something you use. It’s something you can control.
If you’re serious about running a smart, efficient business, this is where you start: with awareness, action, and a well-timed energy review.