Finding the best business electricity contract and getting the support you need can be tough, especially as a small to medium-sized business.
Unlike large corporate organisations, you may not have a dedicated team member who specialises in energy procurement. And choosing the wrong plan for your business could put a strain on your bottom line.
So, how can you be sure you’re getting the best deal for your business?
In this handy blog, Flow Power’s energy experts break down:
- The differences between small to medium business plans and commercial & industrial (C&I) sized electricity contracts
- How small businesses can move up to large market rates and contracts
- The potential pros and cons of changing your business electricity contract
What’s the difference between small business electricity contracts and commercial & industrial (C&I) contracts?
Small business electricity contracts are generally for small to medium-sized businesses. They’re characterised by their flexibility and the standard peak and off-peak price structure. They typically feature no exit fees, allowing customers to switch when they choose and easily move to a cheaper alternative.
Although the pricing can be competitive, rates on a small business contract are typically bundled, except for supply charges and solar export. This means all charges such as usage, network charges and environmental charges are wrapped into one price, with no visibility over individual costs.
Large C&I electricity contracts generally operate under fixed terms with exit fees, from long term Power Purchase Agreements to wholesale electricity market-linked retail contracts. These contracts are generally catered towards larger electricity consumers who often have higher energy demands and team members dedicated to energy procurement.
Moving from a small business electricity plan to a large market electricity contract
Businesses looking to transition from a small business contract to a C&I contract must meet certain energy consumption thresholds, which vary by state. These thresholds determine the load required to be classified as large C&I customers:
- NSW: 100 MWh
- VIC: 40 MWh
- SA: 160 MWh
- QLD: 100 MWh
- ACT: 100 MWh
- TAS: 150 MWh
If you meet the threshold for your state, the transition process is simple. Using your previous billing data, electricity retailers like Flow Power can perform an analysis to determine whether moving up to a C&I rate would offer price benefits for your business.
If you elect to switch to a C&I contract, your retailer can help you make the transition (different processes may apply depending on your location).
Typically, when you move up to a large C&I contract, you’ll also be assigned an account manager to ensure you’re getting maximum benefit from your new contract.
Could switching result in additional or unexpected costs?
Switching from a small business contract to C&I is not suitable for every business. Transitioning to C&I rates can sometimes result in network tariff changes, which can lead to significant cost implications.
Reverting to a small business contract after being classified as a C&I customer can also be a challenging and time-consuming process, so it’s important to discuss whether switching is right for your business with an energy specialist.
If you’re not ready to make the leap to C&I rates, Flow Power now offers small business contracts. After almost 30 years of helping large energy users benefit from flexible wholesale-linked pricing, we’re supporting small to medium-sized businesses to reshape how they use energy.
Small Business (1-5 sites)
If you’re a small to medium-sized business with 1-5 sites, our new small business plan offers a smarter way to manage your energy use.
Designed specifically for small businesses, this plan empowers you with tools and insights to take control of your energy usage, potentially reduce costs, and support Australia’s renewable energy future.
Why choose this plan?
- Cost savings potential: With access to wholesale-linked pricing and our Price Efficiency Adjustment (PEA), Flow Power helps you optimise your energy consumption and identify savings opportunities.
- Sustainability: Our small business plan for 1-5 sites is 100% GreenPower certified, linking your business to renewable energy projects like the Karadoc Solar Farm. For every kilowatt of energy you use, an equivalent kilowatt of green energy is added to the grid.
- Control and transparency: Small businesses with 1-5 sites can use the Flow Hub and Flow App for real-time energy usage insights helping you make smarter decisions about when and how to use energy.
If you’re a small business with daytime electricity use, solar and battery systems, or EVs charged on-site, Flow Power could help you unlock savings for smarter energy use.
Learn more
Small Business Multi-Site (5+ sites)
Flow Power is soon expanding our small business contracts to support multi-site small businesses (5+ sites), helping bridge the gap for businesses that don’t meet C&I usage thresholds, or wouldn’t benefit from switching to a C&I contract.
Here’s some of the key features of our upcoming Small Business Multi-Site contracts:
- Price incentives: Just like our other Flow Power contracts, from C&I to Residential, our Small Business Multi-Site contract will offer price incentives for efficient energy use, through a Price Efficiency Adjustment (PEA).
- Simplified billing: Although this product will operate similarly to our C&I contracts, your business can enjoy simplified billing with one bundled rate on your monthly bill.
- A personalised approach to power: Small business customers with 5+ sites will also be assigned a dedicated account manager, for support whenever you need.
- Optional add-ons: Upgrade your contract with wholesale market alerts and energy efficiency advice through our in-house engineering advisory service, Energy Ready (subject to usage thresholds).
Interested in learning more? If you’re an existing Flow Power customer, reach out to your dedicated account manager. For all other enquiries, fill out the form below to register your interest.
Ready to take control of your energy?
Whether you’re looking to transition to a C&I contract or explore the benefits of our small business contracts, Flow Power is here to help.
No matter which Flow Power contract you choose, you can unlock the cost-saving benefits of flexible energy use – all while supporting Australia’s renewable energy future.
Get in touch today to compare your options or fill out the form below to receive a callback when Flow Power’s Small Business plans are available in your state.
Register your interest
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Flow Power’s Small Business plan is currently available for Victorian customers with 1-5 sites. Businesses with 5+ sites and all other states in the NEM coming soon.