Business tariffs

To help you manage your business’s electricity costs, it's important to understand the features of various electricity tariffs that are available to you. Below we explain the key features of business network tariffs. Network tariffs are what we charge your electricity retailer for electricity consumption and demand at your premises – how your electricity retailer passes on those costs to you is up to them.

The information below is a guide only and you should also talk to your electricity retailer about what tariffs are available to you and ask them to undertake a tariff comparison, using your previous energy consumption profile, to estimate the best tariff option for your business.

Tariff options vary based on your electricity use

The network tariff options (which may or may not directly reflect your retail tariff options) that are available to you are determined by the nature of your businesses’ energy consumption and the type of meters you have installed, which in turn impacts how your business is classified as an energy user.

Small business customers

Businesses that use less than 100,000 kWh/year are classified as a Standard Asset Customer (SAC) – Small customer. The network tariff option for customers in this class with a basic meter (a meter that does not have remote read capabilities), will be a simple tariff based on total kWh of electricity consumed during the billing period, plus a fixed daily charge.

For customers with a smart meter (an electronic meter with remote read functionality), there two tariff options that feature variable pricing structures.

The first option is a time of use energy tariff with charges based on the amount of electricity consumed in (kWh) in different periods during the day, with:

• A fixed daily charge
• Peak time charges from 5pm to 8pm (Monday to Friday),
• Off-peak charges from 11am to 1pm (Monday to Sunday), and
• Shoulder period charges on weekdays from midnight to 11am, 1pm to 5pm, and 8pm to midnight; and on weekends from midnight to 11am, and 1pm to midnight.

The second option is a time of use energy and demand tariff. This tariff is similar to the time of use energy tariff but also adds a charge for the demand (measured in kW) placed on our electricity network during peak times. This demand charge is:

• Peak demand charge for the single highest 30-minute kW demand during the month, during weekday hours of 5pm to 8pm.

Large business customers

Businesses that use more than 100,000kWh/year are classified as a SAC - Large customer. For SAC - Large customers with a basic meter, the Large Business Energy tariff is available which features a $/day fixed charge and a consumption charge based on kWh consumed.

Most customers are being moved to smart metering. For those sites with a smart meter, the standard network tariff that applies features variable rates for consumption (kWh) as well as charges for the demand on our electricity network (measured in kilowatts kW or kilo volt amps kVA) – these tariffs are usually referred to as demand tariffs.

For large customers, the time of use energy and demand tariff features:

• A fixed daily charge
• Peak time consumption (kWh) charges from 5pm to 8pm (Monday to Friday),
• Off-peak consumption (kWh) charges from 11am to 1pm (Monday to Sunday), and
• Shoulder consumption (kWh) charges on weekdays from midnight to 11am, 1pm to 5pm, and 8pm to midnight; and on weekends from midnight to 11am, and 1pm to midnight
• Off-peak demand charges for the single highest 30-minute demand during the month (measured in either kW or kVA), during weekday hours of 11am to 1pm (Monday to Sunday)
• Peak demand charges for the single highest 30-minute demand during the month (measured in either kW or kVA), during the weekday hours of 5pm to 8pm
• Shoulder demand charge hours are the same as the hours for shoulder volume charges.

For further information or details of other tariff options, refer to the Network Price List and Network Tariff Guide on our Network pricing and tariffs web page.

Alternative network tariff options for large customers are as follows:

• The Demand Small tariff has:
  • A fixed daily charge
  • An ‘anytime’ demand charge (in kVA) applicable to the single highest 30-minute demand during the month
  • An ‘anytime’ consumption charge (in kWh) for all consumption.
• The Primary Load Control tariff:
  • Is an option for businesses who can manage their operations even if electricity supply is interrupted for up to 8 hours per day (in return for lower electricity costs)
  • Is further explained on our Load control tariffs for business web page e.g. how it works and who it may be suitable for
  • Has the following structure:
    • a fixed daily charge, and
    • an anytime consumption charge (in kWh) for all consumption.
• The Large Time of Use Energy tariff:
  • Is a new network tariff, commencing July 2025, that may suit businesses who have a relatively high monthly demand compared to their consumption (kWh)
  • Is for eligible customers with monthly peak demand greater than 120 kVA but with consumption below 160 MWh/year.
  • Has the following structure:
    • a fixed daily charge
    • peak time consumption (kWh) charges from 5pm to 8pm (Monday to Friday),
    • off-peak consumption (kWh) charges from 11am to 1pm (Monday to Sunday), and
    • shoulder consumption (kWh) charges on weekdays from midnight to 11am, 1pm to 5pm, and 8pm to midnight; and on weekends from midnight to 11am, and 1pm to midnight.

Very large business customers

For very large business customers classified as a Connection Asset Customer (CAC) or an Individually Calculated Customer (ICC), tariff charges are based on consumption, demand and several other charging parameters related to the way the premises is connected to and uses our electricity network. These are more complicated network tariffs and details are available in our Network Tariff Guide on our Pricing and tariffs web page.

In all cases, your electricity retailer will advise the retail tariffs they can offer you, based on your business' electricity usage and connection to our electricity network. If you are unsure of your business classification, this is usually found on your electricity bill, or you can check with your electricity retailer.

How are network demand tariffs charged?

The electricity charges under a demand tariff are based on both your power demand on our electricity network, measured in 30-minute intervals, and the total amount of electricity you use. They are usually based on a monthly billing cycle.

Depending on your monthly bill format for this tariff, you will see:

• A demand charge based on your electricity demand (kW or kVA) on our electricity network
• An energy charge for the total amount of electricity used (kWh)
• A fixed daily service charge
• Metering charges.

One way to understand how consumption and demand charges work under demand tariffs is like taking a drive in your car. One charge is for the total distance you travelled (or your total electricity usage, in kWh), and another charge is for the fastest speed you reached (or your peak demand, in kW or kVA).

Calculating demand

The demand charge element of a demand tariff can represent a large portion of your total bill, depending on the tariff rate and your electricity usage. Therefore, it's important to understand how demand is calculated so that you can take steps to manage your overall power bill.

The billable demand under a network demand tariff is typically recorded in your electricity meter as the average demand, over a 30-minute period* – rather than the single highest instantaneous demand. This is done by measuring the energy consumed during the 30-minute period (in kWh) and converting that to average demand by multiplying by two. By averaging the demand over a 30-minute period, it means that customers are not charged based of a single spike in demand when equipment is turned on.

A simple example is:

• Consider a factory that uses 100kWh of electricity for 15 minutes when machinery is starting up then 50kWh for the rest of the 30-minute period. This factory uses 150kWh in this 30-minute period. Therefore, the demand for this period is 150kWh x 2 = 300kW.

The amount of billable demand under some tariffs is calculated using an ‘any-time’ demand approach, meaning your chargeable maximum demand is the highest 30-minute demand period, regardless of when that occurs during the month. Other demand tariffs have a pricing structure that applies charges based on when your maximum demand occurs, giving you an incentive to shift electricity consumption from peak to off-peak charging periods, to save on electricity running costs.

Visit our Managing electricity demand web page for general information on measures you can take to manage your site's demand.

* For some large business, demand charge windows may be over different periods.

kVA or kW demand charging

Most customers that are on a demand based tariff will be charged using demand calculated in kilovolt amperes, or kVA, rather than kWs. Measuring demand in kVA takes into account the real power used by the site but also the extra power that may be required due to the site having a poor power factor. Refer to our Power factor web page for more information on the difference between kVA and kW and how to improve power factor to help reduce your bills.