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How to choose the right electricity plan for your small business

For small business owners, choosing the right electricity plan can make a real difference to your energy costs and how much control you have over your usage.

5 February 2026, 4 mins

How to choose the right electricity plan for your small business

Choosing the right electricity plan can make a real difference to your energy costs and how much control you have over your usage. 

For small business owners, electricity is often managed alongside everything else in daily life, unlike larger businesses that may have in-house specialists to find the right plan. Without a dedicated energy expert on your team, it can be hard to know which plan is right for your needs or when it makes sense to switch. 

That’s why we’ve put together this guide – we’ll explain the different types of electricity plans available, when moving to a different pricing structure may be worth considering, and how Flow Power supports small businesses with smart, variable plans. 

 

What electricity plans are available for small businesses? 

Most small business customers are on standard electricity plans designed for low to moderate energy use. 

These plans typically have flexible terms and are easy to switch. Pricing is often based on peak and off-peak periods, with costs bundled into a single usage rate plus a daily supply charge. 

 

Small business electricity plans vs commercial electricity contracts

Small business electricity plans are typically designed for simplicity, with flexible terms and no exit fees, allowing businesses to easily move plans if their needs change. 

Commercial and industrial electricity contracts are structured differently. These contracts are tailored to larger energy users and usually include fixed terms and exit fees. They can range from long term power purchase agreements to retail contracts linked directly to wholesale electricity prices. 

Commercial contracts are typically suited to businesses with higher energy use and dedicated resources to manage energy procurement, like large manufacturing operations or agribusinesses. 

When can my business move to a large market electricity contract?

Your business may be eligible to move from a small business electricity plan to a large market commercial contract, depending on your annual electricity usage and your state. 

Current usage thresholds for each state: 

  • New South Wales: 100 MWh 
  • Victoria: 40 MWh 
  • South Australia: 160 MWh 
  • Queensland: 100 MWh 
  • Australian Capital Territory: 100 MWh 
  • Tasmania: 150 MWh 

 Outside of Victoria, all other states allow combining the load of same business sites to get them over the threshold to treat as a large business. If your business meets the threshold for your state, electricity retailers like Flow Power can review your past billing data to assess whether moving to a large market contract could offer cost benefits. 

Businesses that move to these contracts are typically supported by a dedicated account manager throughout the transition. 

 

Is switching electricity plans always a good idea? 

Moving to a large market contract can sometimes result in changes to network tariffs, which may significantly affect overall costs. In some cases, the process of returning to a small business plan after being classified as a large commercial customer can be complex and time consuming. 

Before switching, it’s important to understand how pricing works and whether the change suits your business’ energy usage patterns.  

 

Electricity plans for small businesses with Flow Power 

For small businesses that don’t meet the threshold criteria for a commercial and industrial contract, Flow Power offers electricity plans designed to provide more control and transparency. 

After almost 30 years of supporting large energy users with wholesale-linked pricing, Flow Power now supports small to medium sized businesses with tools and insights to help manage energy more effectively. 

Small to medium sized businesses can access Flow Power’s small business electricity plan. 

This plan is designed to help businesses understand their energy use and identify opportunities to optimise it. 

Key features include: 

  • Cost saving potential through wholesale-linked pricing and a Price Efficiency Adjustment 
  • Sustainability, with 100% GreenPower included as standard and support for renewable projects like the Karadoc Solar Farm 
  • Control and transparency through real-time energy insights in the Flow App and Flow Hub (for customers in VIC only) 
  • This plan is best suited to businesses with daytime electricity use, solar and battery systems, or electric vehicles charged on-site. 

 

Learn more

 

Solar and battery options for small businesses 

Government incentives are helping small businesses invest in battery storage alongside new or existing solar systems. Pairing solar and batteries with a variable rate electricity plan can help improve energy resilience and reduce long-term costs. 

We’ve partnered with Solar Choice to help small businesses find the best solar and battery solutions for their requirements. Click here to learn more 

Choosing the right electricity plan 

The right electricity plan can help you better understand your energy use and reduce monthly costs, making a big difference for your business’ bottom line. 

Flow Power supports small businesses with transparent pricing, real-time electricity insights, and 100% GreenPower included as standard. 

Check out our rates for small businesses to see how much you could save. 

 

View our pricing
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