Every Australian business wants to cut overheads, and electricity is one of the biggest recurring costs. It’s no wonder so many operators type this exact question into Google: Who has the lowest price for electricity?
On paper, it’s a simple question. But in practice, the answer is far more layered — and often misleading if you’re only going by published rates. The truth? The lowest price doesn’t always come from the most obvious place. And without the right help, you might lock into a contract that looks cheap but costs more in the long run.
This is why more businesses are turning to an energy broker — someone who knows the market inside and out and can help you secure the best value based on how you actually use energy.
The Illusion of “Lowest Price”
Most energy providers advertise rates in cents per kilowatt-hour (kWh), and many throw in sign-up bonuses or limited-time discounts. But the fine print reveals the bigger picture.
Here’s what influences what you really pay:
- Time-of-use pricing (are you paying peak rates when you operate?)
- Daily supply charges (flat fees that vary by retailer)
- Demand charges (penalties for short spikes in usage)
- Contract length and early exit fees
- Whether the rates include GST and network charges
This is where relying purely on price comparison websites can backfire. They often exclude many of these details or base comparisons on “average” users that don’t reflect your business.
That’s why a skilled energy broker is better equipped to identify what actually saves you money.
What an Energy Broker Really Does
An energy broker isn’t a retailer. They don’t sell electricity — they help you buy it better.
Here’s how:
- Analyse your usage: Brokers look at your recent bills and usage patterns to understand when and how you consume power.
- Source multiple quotes: They gather current commercial offers from a range of retailers — not just what’s on public comparison sites.
- Break down each tariff: Instead of comparing just cents per kWh, they compare total projected costs, including supply, usage, and demand fees.
- Negotiate pricing: For larger users, brokers can request custom rates or volume discounts.
- Provide ongoing advice: A good broker doesn’t just make a one-off sale — they help you review contracts as your needs change.
To see how different brokers stack up on transparency, service, and long-term impact, explore this energy broker review.
A Real-World Example: The Gym That Paid Less by Paying Smarter
A 24/7 gym in outer Melbourne was paying what seemed like a competitive flat rate — 28.5c per kWh. But because most of its usage occurred overnight, it was paying for peak pricing during off-peak hours.
An energy broker reviewed the gym’s interval meter data and identified a time-of-use plan that charged just 19.7c/kWh during the gym’s core operating times. The broker also negotiated a lower daily supply fee and ensured the new contract included flexible rollover terms.
Annual savings? Just over $3,400 — without reducing consumption.
Who Actually Has the Cheapest Electricity?
It depends where you are, how much you use, and what kind of contract you sign. According to Energy Made Easy, several retailers frequently top the charts for low residential and small-business rates:
| State | Consistently Low-Cost Retailers |
|---|---|
| VIC | Tango Energy, GloBird Energy |
| NSW | ReAmped Energy, Energy Locals |
| QLD | AGL (large volume), Powershop |
| SA | Lumo Energy, Origin Energy |
However, those rankings fluctuate monthly. And what’s listed online might not include:
- Commercial-specific plans
- Wholesale-linked contracts
- Tariff changes based on postcode
- Exclusive broker-only offers
That’s why businesses with moderate to high usage don’t rely on the public data — they work with an energy broker who can find deals that actually match their needs.
The Cost of Choosing the Wrong Deal
Picking the wrong electricity provider isn’t just about missing a saving — it can lead to long-term costs. Here’s what can go wrong:
- Fixed rates in a falling market: You miss the benefit of lower wholesale prices.
- Locked-in contracts: Exit fees or inflexible terms can prevent you from switching.
- Misaligned tariffs: You pay more during your business’s peak operating hours.
- Hidden fees: “Discounts” may only apply to usage, not supply charges.
These issues aren’t always obvious upfront. A broker has the tools to spot them before you sign.
When Should a Business Use a Broker?
If your business:
- Spends over $500/month on electricity
- Operates outside of 9–5 hours
- Has multiple sites
- Uses high-power equipment or HVAC systems
- Hasn’t switched providers in over 12 months
…it’s time to stop guessing and get expert advice.
A good broker won’t just find you the cheapest electricity rate — they’ll find the most cost-effective plan based on how your business operates.
Final Thoughts: It’s Not About the Lowest Rate — It’s About the Right Fit
So, who has the lowest price for electricity? It changes all the time. And more importantly, the lowest rate doesn’t always equal the lowest cost.
That’s why businesses working with an energy broker consistently outperform those who go it alone. Brokers look beyond the headline rates. They factor in your usage, timing, growth plans, and risk tolerance — then match you with a contract that saves money in the long run.
Before you lock in another electricity deal, ask yourself: am I choosing based on real data, or guesswork?
Because the cheapest power isn’t just a price — it’s a strategy.