Cutting costs: How cafes and coffee roasters can save by switching to wholesale electricity

If you own a cafe or coffee roastery, energy is more than just a utility—it’s the lifeblood of your business. From powering espresso machines to running roasting equipment, electricity is essential to delivering the perfect cup of coffee.  

But finding the right electricity contract and support can be challenging – and rising costs can put a strain on your business’ bottom line. 

That’s why more businesses are switching to wholesale linked electricity plans – to turn energy intensive operations into opportunities to save on their monthly bills.  

Understanding wholesale linked electricity plans 

The wholesale market price of electricity changes every 5 minutes, based on supply and demand. All electricity retailers buy energy from the wholesale market to pass on to consumers.  

Wholesale linked electricity plans offer flexible pricing to align with real-time wholesale market rates, giving businesses a chance to benefit when prices drop.   

Unlike fixed-rate plans that lock in a set price for an extended period, wholesale linked plans allow businesses to capitalise on low – and even negative – wholesale prices when they’re available from the grid. (Typically, during daytime hours, when solar generation is at its peak.) 

Benefits for cafes and coffee roasters 

1. Cost savings: The key benefit of wholesale linked plans lies in potential cost savings. For cafes and coffee roasters, whose electricity consumption can be substantial due to equipment like coffee machines, grinders, and refrigerators, even a small reduction in electricity rates can translate into significant savings over time. 

2. Flexibility: These plans often offer more flexibility compared to traditional fixed-rate contracts. Businesses can adjust their usage patterns to take advantage of lower-priced periods, potentially reducing overall electricity costs without compromising operations. 

3. Risk management: While wholesale prices can fluctuate, businesses can mitigate risks by planning ahead or using technology to monitor and optimise energy consumption during peak and off-peak hours.  

4. Environmental impact: By simply switching more of your energy use to low or negative priced periods, you’re likely using cheaper, cleaner energy from the grid. Low price periods typically align with periods of peak renewable generation. For example, during daytime hours, solar energy floods the grid with cheap, clean energy, driving down wholesale prices.  

Is wholesale electricity right for your coffee business? 

Before making the switch, it’s crucial for cafes and coffee roasters to consider the following: 

• Energy usage patterns: Analyse when and how much electricity your business consumes. This information will help in determining the potential savings and risks associated with wholesale linked plans. 

• Market conditions: Stay informed about energy market trends and forecasts. Understanding market dynamics can help businesses make informed decisions about when to lock in rates or adjust usage. 

• Contract terms: Review the terms and conditions of different plans carefully. There are differences between Small Business plans and larger Commercial & Industrial plans, so it’s important to ask your retailer about the best option for your business. 

Ready to make the switch to wholesale energy? 

Switching to wholesale linked electricity plans can be a strategic move for cafes and coffee roasters looking to optimise costs without compromising operational efficiency.  

By leveraging market fluctuations and adopting smart energy management strategies, businesses can potentially cut costs and reduce their carbon emissions.  

Before making the switch, speak to Flow Power’s energy experts. Our helpful team will ensure your business can make informed energy decisions, and get you connected to a smarter solution – whether you’re a large electricity user, or a small business.