Many Australian businesses don’t realise they’re paying more for energy than they need to, until it’s already happened.
When a business electricity or gas contract reaches its end date and isn’t renewed, the account doesn’t stop. Instead, it automatically rolls onto default rates set by the energy retailer. These rates are often significantly higher than negotiated market offers, and in many cases, the change can be easy to miss if contracts aren’t actively monitored.
What Are Default Energy Rates?
Default rates are the standard prices energy retailers apply when no active contract is in place. They’re designed as a fallback, not a competitive option.
Default rates are generally less competitive than negotiated market rates and often come with less favourable terms and limited price certainty. These rates can also change with minimal notice, leaving businesses exposed to unexpectedly high energy costs. Once your contract expires, retailers are not required to offer the same discounted rates you previously enjoyed.
How Expensive Can Default Rates Be?
Default rates can be significantly higher than rates available through competitive market negotiationsThe change can be easy to miss if contracts aren’t actively monitored.. That means a business previously paying competitive market rates could suddenly face a sharp increase in monthly bills. And because default rates are ongoing, the longer the account stays unmanaged, the greater the cumulative cost.
Avoiding Default Rates and Unexpected Costs
Default rates are rarely in a business’s best interest. They’re expensive, easy to fall into, and often go unnoticed until the bill arrives. Even if your business is already on default rates, an energy consultant can step in to renegotiate or switch plans, often delivering immediate savings.
Why Businesses Benefit from an Energy Broker
Working with an energy broker takes the stress out of managing your business energy. We work directly with multiple retailers to secure competitive market rates tailored to your usage, ensuring you’re not overpaying for energy you already use.
One of our dedicated energy consultants will monitor contract end dates, compare offers across the market, negotiate sharper rates and better terms, and help you avoid falling onto costly default rates altogether. By staying proactive on your behalf, a broker ensures you’re always on the best deal, removing the need for you to track contracts, review plans, or chase retailers yourself.
