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Complete Guide to Small Business Electricity

Updated: Mar 28

Small business electricity can be confusing but Bright Spark Power are here to help. Here's our FAQ on small business electricity - everything you need to know about connecting, switching and using electricity when you are a small business.


In this guide:

What does being a small business electricity customer in the electricity system, mean?

Businesses that are classified as 'small' electricity customers are protected as consumers under national energy laws, in similar ways to residential electricity customers. This means your electricity provider must

  • Provide a written summary of the business electricity plan

  • Tell you when there are any price or contract changes

  • Give you clear invoicing that explains your electricity charges

When you are a large business electricity customer you have to negotiate your own contract directly with an electricity supplier.

Am I a small business electricity customer in the electricity system?

Business will generally be classified as 'small' or 'large' electricity customers. You will be classified as a small business electricity customer if you use under the following thresholds of electricity

  • NSW 100MWh

  • QLD 100MWh

  • ACT 100MWh

  • TAS 150MWh

  • SA 160MWh


Can I change my business electricity classification from large to small?

Your business electricity has been classified in the system by the distributor as small or large based on prior or expected electricity usage. If your business uses over 100MWh in a year you would need to be classified in the system as a large customer. However, if you are classified as a large business electricity customer and consistently show through your electricity invoices that you use less than 100MWh per year then it may be possible to be reclassified. Bright Spark Power have worked with customers in the past to help them communicate with the electricity distributor and be reclassified in the electricity system as a small business electricity customer.

I am a business but I seem to have a residential electricity plan?

When a premises is built the electricity will get classified in the system by the distributor as residential or business. It is possible that some types of premises are classified in the electricity system as residential but allowed by local councils to be a place of business. You could take the option of being reclassified as a business electricity premises, however is it definitely worth looking at the costs of the residential vs business electricity plans available to you. If you are not sure, Bright Spark Power team are here to help business electricity customers navigate what is right for them so give our friendly a team a call for some advice on 1300 010 277 weekdays 8am to 6pm.

How much does business electricity cost?

Business electricity invoices will generally show a couple of different rate inputs. It will include a daily supply charge and then a electricity usage rate which may be one rate (flat rate electricity plan) or multiple rates (time of use electricity plan). The daily supply charge is the cost to connect to the electricity grid, passed on by the distributor, the usage charges are billed according to how much electricity you use. Check business electricity rates by postcode.

Should I get a time of use or flat rate business electricity plan, and can I change it?

On a single rate electricity tariff, a business will be charged the one rate for electricity, regardless of the time of day the electricity is used. A time of use business electricity tariff will see a business electricity customer charged different rates depending on the time of day they consume energy. In theory, if you mostly use electricity outside of peak times, on a time of use tariff, it is possible that you'll spend less overall.

Your electricity distributor has set whether you are on a time of use or single rate meter and your most recent electricity bill will show you which rate you are on. When you are comparing business electricity, you should first start by comparing the same tariff you are currently on.

However, even if you are on a single rate tariff, it is worth understanding what time of day you use electricity and whether asking to switch tariffs would be better for you, as there are certain circumstances that make it possible to get your tariff changed.

Should I upgrade my basic meter to a smart meter for business electricity?

A smart meter is a game changer for business owners and business electricity. A smart meter for your business electricity will allow you as the business owner to more accurately see how much electricity your business is consuming and when, which in turn can help with making informed decisions about energy efficiency or even technological advancements like electric car charge points or solar panel installation. Read our full article on why you should upgrade to a smart meter.

How do I compare business electricity providers?

Of course price is a factor when transferring business electricity providers but there are a few other things you should look at, including whether you need assistance with changing tariff, a smart meter installed, and whether its important to use an Australian owned business s with any service, if you are looking to change providers, it helps to work out what you are looking for so that you can best compare providers. Read our full article on what to look for when you switch business electricity providers.

What do customers say about switching business electricity to Bright Spark Power?

"When I made the switch to Bright Spark, I was looking for savings for my business electricity usage. They arranged the switch to a smart meter, and it was a smooth process. I'm now able to make considerable savings on my electricity bill by moving usage to off-peak times. It's a pleasure to be part of the Bright Spark Power family - their support for small businesses , and renewable energy, is something I love. The team goes over and above with friendly support."

H Ryan, Macksville

How long does switching my business electricity take?

Signing up to a new business electricity agreement can be done in just a few minutes on our website. Once we receive your service order we will contact you about transferring your electricity service. We will give you a call to work out the best date to transfer the service. It will depend on your electricity meter type, but we may be able to transfer the service in a couple of days - or possibly even retroactively transfer service to your last meter read date. Start your transfer here.


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Bright Spark Power offer best value business electricity, from a 100% Aussie family owned and operated business - just like yours. Enter your postcode to display our electricity plan options for your premises. Don’t worry, there’s no commitment while you’re just checking us out.​

Contact Bright Spark Power to quickly solve your biggest concerns about business electricity. Call 1300 010 277 weekdays 8am to 6pm or email support@brightsparkpower.com.au anytime.