When was the last time you checked your business energy plan? If you’re one of the 147,000 small business owners still on a Standing Offer, you're probably spending significantly more than necessary on your energy bills.
Despite the availability of more competitive Market Offers, data reveals that a considerable portion of small businesses in Australia are still on Standing Offers. Here's the breakdown:
- New South Wales: 56,000 businesses (18%)
- South-East Queensland: 21,000 businesses (18%)
- South Australia: 14,000 businesses (16.5%)
- Victoria: 56,000 businesses (20%)
Understanding Standing Offers and how to switch to a better Market Offer can make a big difference to your business bottom line. Here's what you need to know.
What is a Standing Offer?
A Standing Offer refers to the default electricity or gas contract that a retailer provides to customers who haven't actively looked for a better deal (or Market Offer). The maximum rates that a retailer can charge on a Standing Offer is decided by energy regulators through the Default Market Offer (DMO) in NSW, SA and South-East QLD, and the Victorian Default Offer (VDO) in VIC.
Retailers set their own Standing Offer prices but cannot charge more than the DMO or VDO. Some retailers may charge less.
Generally, when DMO and VDO electricity prices increase, so do the prices of the Standing Offers from retailers.
For context, in New South Wales, South-East Queensland, and South Australia, proposed DMO price hikes for 2025-26 range from 4.2% to 8.2% for small businesses.
Meanwhile, Victoria’s Victorian Default Offer (VDO), which sets the price cap for Standing Offers in that state, is expected to rise by $103, bringing the average annual bill for small businesses to $3,633.
So, this means that there are at least 147,000 small Aussie businesses that are at risk of their electricity rates drastically increasing after 1 July 2025. These increases underscore a troubling trend for businesses sitting on Standing Offers, which are often considerably more expensive when compared to Market Offers.
What is a Market Offer?
A Market Offer is a type of energy plan provided by energy retailers, typically tailored to attract customers with competitive rates and features. These offers often include discounts, flexible payment options, and other incentives that can help reduce your energy costs.
Unlike Standing Offers, which are closely linked to default market rates and regulations, and usually considerably more expensive, Market Offers are subject to competition, encouraging retailers to offer better deals. To benefit from a Market Offer, businesses need to shop around, compare providers, and actively sign up for a plan that suits their energy needs.
How do small businesses end up on Standing Offers?
There are several reasons small businesses may find themselves paying Standing Offer rates:
- They may have never signed a contract with an energy retailer.
- Their existing Market Offer expired, and they were automatically moved to a Standing Offer.
- They moved their business to a new location and did not actively choose a new energy plan.
If any of these scenarios apply to you, there’s a good chance you’re paying more than necessary.
How to switch to a Market Offer
Here are six simple steps to help you switch from a Standing Offer to a more competitive Market Offer:
1. Assess your current plan
Start by checking your current energy contract and rate. Are you on a Standing Offer?
Your energy bill should indicate whether you are on a Standing Offer. Look for the terms "Standing Offer," "Standard Contract," or similar wording on your bill. This information is often found in the contract details or pricing section. If you are unsure, contact your energy provider directly to confirm your plan type.
If you are, take note of your current usage rates and charges.
2. Compare Market Offers
Explore and compare what Market Offers are available from reputable Aussie energy retailers. Pay close attention to:
- Usage rates (cents/kWh)
- Daily supply charges
- Discounts or incentives
- Contract length and flexibility
3. Understand your business needs
Analyse your business's energy usage patterns. Do you have peak periods? Could a time-of-use tariff be more cost-effective? Understanding your needs will help you choose a plan tailored for your business.
4. Consider renewable energy options
Many competitive plans now offer green energy or renewable options. Choosing a sustainable plan might align better with your business values and appeal to eco-conscious customers.
5. Make the switch
Once you’ve found a suitable Market Offer, contact the new retailer and notify your current provider to finalise the switch.
Why do it alone? Let Zembl's Energy Experts help
We've outlined the steps above for comparing plans and switching from a Standing Offer to better rates on a Market Offer - it’s a thorough process with plenty to consider. But why go through this alone when you can have Zembl's Energy Experts handle it for you?
All we need is a copy of your current energy bill. Our team will compare your existing rates with the competitive Market Offers available from our panel of leading Aussie energy retailers. If we find a better plan that saves you money, we can switch you on the spot and take care of all the legwork and paperwork involved. You start saving immediately, stress-free.
Why this matters now
With energy price hikes likely on the way, controlling operating costs is crucial for small businesses. While Standing Offers are meant to act as safety nets, they shouldn’t be relied on for long-term savings.
If you're on a Standing Offer, switching to a Market Offer could save your business hundreds or even thousands of dollars annually. In 2024, Zembl saved small businesses a combined total of $14.5M on their energy bills. Take the first step today by filling in the form below to get a quick bill comparison from Zembl's Energy Experts.
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