While these changes often receive less attention than wholesale energy prices, they can have a material impact on total electricity costs for commercial and industrial energy users.

Network charges typically account for 30–50% of a commercial or industrial electricity bill. However, they are separate from retail electricity contracts and are not influenced by negotiated energy rates. Instead, they are set by local distribution networks such as Ausgrid, Energex, Endeavour Energy, CitiPower, Jemena and approved annually by the Australian Energy Regulator (AER). These costs are then passed through to end users regardless of their retail energy agreement.

From 1 July 2026, network costs will change again across all major distribution networks, with the magnitude of those changes varying considerably by jurisdiction, tariff class, and demand profile.

For energy-intensive businesses, this presents an opportunity to reassess whether they are still on the most optimal network tariff. In some cases, a tariff review can identify a meaningful cost savings.

Below is a summary of the approved network changes for large energy users from 1 July 2026:

Figures represent the approved average all-business network cost change for FY27. Actual impact varies by tariff class.

The ACT, Queensland’s south-east, and the Northern Territory face the steepest increases — all above 11%. Large businesses across NSW are looking at rises between roughly 7% and 13%. Victorian customers have a more mixed picture, with some networks actually reducing costs.

How Much Will This Impact Your Business?

Network charges typically account for 30–50% of a commercial or industrial electricity bill. An increase of 10% on the network component doesn’t look dramatic at first glance, but a constant increase almost every year can eventually become significant.

That cost lands on 1 July whether you’re ready for it or not. The question is whether you’re on the right tariff to avoid overpaying on your Network Costs.

Your electricity bill will show your network charges and in some cases your network tariff code. Check out our ‘Your electricity bill explained’ FAQs or get in touch with our energy experts if you’re unsure.

Your Business’s Network Tariff Might Have Changed

Here’s what many large energy users don’t know: the network tariff your site is assigned to isn’t fixed. It can be reviewed, and if your load profile, operational pattern, or on-site generation has changed since it was last assessed, you may be paying for a tariff structure that no longer fits.

This is what a Network Tariff Review (NTR) tests. It identifies whether a site is allocated to the correct and most beneficial tariff, or not.

The Commercial Case Is Well Established

The financial case for reviewing network tariff assignments is clearly documented. Industry data shows a meaningful proportion of large commercial and industrial sites would benefit from a tariff reclassification, with average savings running to several thousand dollars per site per year. At the portfolio level, across multi-site operations, the aggregate impact can be material.

For businesses that have made changes in recent years — added solar, shifted operating hours, upgraded equipment, changed production patterns — there is a possibility that your current tariff could be reviewed for an alternative and optimal tariff.

What You Should Do

If your business hasn’t had a formal Network Tariff Review in recent years, Sustainable Energy Solutions might be able to assist with one. If you want to understand what the FY27 changes mean for your specific sites, get in touch with our team.

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Renewable Energy Incentives: Good for Business, Good for the Planet

There are many different incentives and initiatives to encourage Australian businesses to implement renewable energy. From LGCs to ACCUs, it can be overwhelming to keep track of what is available, who is eligible, and what benefits you can secure for your business while advancing the energy transition.

In the table below, we’ll overview the major renewable energy incentives for Australian businesses.

Remember that all renewable energy or energy efficiency certificates and carbon credits can be traded for financial benefit, or purchased/surrendered to offset your business’s electricity emissions.

There are various other incentives not covered here, including grants, loans and rebates for specific upgrades or services. Visit the Australian Government’s or your State’s renewable energy incentives web portal for the latest information or speak to our Energy Efficiency expert at Sustainable Energy Solutions for a tailored conversation on your business’s needs and goals.

To ensure your business is maximising its potential savings while reducing your emissions, get in touch by replying to this email, contacting your Account Manager or calling (02) 9371 4153.

*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.

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A leading aged care provider approached Sustainable Energy Solutions in 2017 with a problem: energy spend was adversely affecting their business and their previous energy supplier didn’t offer 90% of the services we offer. Our client needed a long term partner who could manage their large multisite electricity and gas portfolio, not just simply facilitate a procurement transaction. Their gas and electricity portfolio consisted of more than 50 supply points across small and large market categories.

The Project

To help our client regain control and make serious energy savings, we took a multi-pronged approach over several years:

• Initially, SES’ procurement experts began working with this client by tracking the market and securing new (significantly cheaper) electricity contracts across the client’s entire portfolio.
• Our primary contact, the Procurement Manager, was impressed by our strategic approach to energy procurement, our knowledge, dedicated account management, and awareness of cost-reduction opportunities. She introduced us to the Property Infrastructure Manager who was looking for solar options at four facilities. Using a solar assessment platform, we helped our client calculate the potential ROI of a range of system sizes and determined the optimal size for each site before going to market for a supplier. Through this process we defined a project scope and minimum requirements that formed part of the tender. We then ran a competitive procurement process that involved assessing the best price, system specifications, and terms and conditions. All four installations were successfully completed in 2019 with minimal disturbance or interruptions to the client’s residents and their families, a key concern for any infrastructure project in aged care facilities.
• In November 2020, our client’s small-market gas contracts that we had secured two years earlier, were up for renewal. After running a full tender with small-market gas suppliers, we identified an opportunity where small-market sites with aggregated gas consumption above XXX megajoules (MJ) could be shifted to a far cheaper gas contract.
• Currently, we are helping our client look at battery storage as an alternative to traditional (and expensive) back-up generators.

Outcome

Our client shaved over 30% off their electricity and gas spend compared to what they would have spent on traditional small-market contracts. They also tapped into a cash-positive solar project which enabled them to add value to their business, and regain control of their electricity costs.

SES didn’t just broker deals. We identified savings, ran energy audits, and helped our client turn problems into opportunities. We have a deep understanding of the energy and gas market and years of sector specific experience — things you need if you want to help your facilities achieve similar results.

‘We reduced our electricity and gas spend by over 30% across our aged care portfolio.’ – Procurement Manager, Aged care facility

Contact

To discuss your energy needs, contract Sustainable Energy Solutions on 02 9371 4153 or contact us here.

About Sustainable Energy Solutions

Sustainable Energy Solutions is a niche consulting firm specialising in energy procurement. Our mission is to educate and prepare medium and large businesses to address the impact of energy on their businesses and develop strategies to enable them to effectively take control of their energy cost.

Copyright © 2023 Sustainable Energy Solutions Pty Ltd

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Why multi-site businesses should consolidate their energy portfolio. 

With many of our clients’ growing their businesses through expansion or acquisitions – managing their energy accounts, billing and spend becomes increasingly complex. There’s no doubt that consolidating makes sense but for medium to large scale companies, it’s a timely process and incredibly burdensome for their account’s team. However, consolidating energy accounts is worth the legwork.

Here we’ve listed 3 common multi-site energy portfolio issues and our solutions:

⚠️ 1. Individual sites managing their own billing under varying account names can be an administrative nightmare. 

Managing multiple energy contracts with different account names and potentially different energy retailers can be a very complicated and time-consuming task. Having multiple site accounts creates varying unit rates, billing cycles and durations, payment terms and contract conditions. 

✔️ Our Account Managers will negotiate with your various retailers to consolidate your contracts under one name. For some of our clients, consolidation has resulted in a single bill for electricity and a single bill for gas. 

⚠️ 2. Engaging multiple energy retailers across different sites diminishes your negotiation power and can limit your ability to take advantage of favourable market conditions. 

By consolidating your contracts with varying energy retailers, your business could have a larger portfolio and higher overall consumption with a single retailer which could enhance your negotiation leverage and could allow for reduced unit price, better contract terms, and other incentives such as site bundling. This strategy could also reduce your exposure to supplier risk, multiple contract expiry dates and varying terms and conditions. Having a consolidated portfolio with one retailer could also enable your business to bring new sites online under your existing contract via a roll in/out allowance, rather than procuring a new contract with each new site. 

✔️ Our Account Managers will consolidate your energy portfolio and maximise your options when going to market.   

⚠️ 3. Not understanding your business’s energy consumption can limit your ability to identify cost-saving and energy-efficiency opportunities. 

Comparing multiple energy bills across numerous sites can be exponentially difficult and can limit your overall visibility. By consolidating your energy portfolio your business will gain a clear and comprehensive overview of both your consumption rates and costs. When you know the numbers, you are empowering your business to accurately identify and implement cost-saving and energy-efficiency measures. Plus, you’ll have the benefit of improved billing accuracy and budget forecasting. 

✔️ Our Account Managers give one-on-one guidance to make sure our clients are implementing cost-saving and energy efficiency measures. 

Is your business facing energy issues?

Chat to our team of experts if your business wants help controlling your energy costs by filling out our contact form or calling us on (02) 9371 4153.

*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.

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How to avoid a poorly installed solar system?

As more and more businesses acquire solar to counter the rise in their energy costs – they are faced with the task of not only choosing the correct system, but engaging with a reputable solar provider who will install the system correctly.

A report produced for the government found that less than 20% of solar installations audited between 2016 and 2018 were fully compliant with necessary regulations. Further audits were done in 2021 through Solar Vic. They discovered a substantial portion of solar power systems installed in their state were substandard. Specifically, 36.85% of the audited systems required rectification and did not meet the necessary standards for efficient operation. 

The prevalence of substandard solar installations is concerning as poorly installed systems can create a variety of problems such as:

⚠️   Reduced system performance

⚠️   Diminished energy production and grid contribution of solar

⚠️   Lower financial returns

⚠️   Shorter system lifespans and higher maintenance costs

⚠️   Increased risk of electrical hazards or fire

What’s the answer? An independent audit post-installation.

As part of our solar procurement process at SES, all of our solar installations above 99kw are audited upon completion by our independent solar experts at Beam Solar. 

When the team at Beam conduct an audit, the entire system is thoroughly assessed and a comprehensive report is generated. These reports highlight non-compliance issues along with recommendations on how to rectify them. They can also send the installer the list of defects which need to be rectified and the team will follow up to ensure they are completed.

The non-compliance report is structured into 5 areas: 

1. Safety Concerns
   These issues pose immediate risks to the system’s safety, and so clients are immediately notified and the system is often turned off until the concerns are resolved. Safety concerns can include incorrectly sealed DC junction boxes or isolators, incorrectly installed cables, terminations or connectors, exposed live conductors, and unsecured panels or equipment that could fall from the roof.
2. High Level Non-Compliances
   These issues can significantly impact system performance, void warranties, or cause damage to the building. Clients are notified in the audit report, and installers are required to rectify all defects. Common high-level non-compliances include poor system design, incorrectly installed solar inverters or panel mounting equipment, poorly sealed penetrations, and lack of correct documentation to enable client to receive Feed-in Tariffs (FITs) or Renewable Energy Certificates (RECs).
3. Medium Non-Compliances
   These issues may result in lower levels of underperformance or difficulties in operating and maintaining the system. Clients can request follow-up with the installer. Medium non-compliances may include minor system design issues, insufficient walkways between panels, failure to provide client with monitoring logins, significant signage or documentation issues, and panels placed in shading or too close to A/C units or vents.
4. Low Level Non-Compliances
   These cases do not significantly impact the system’s performance, and the risk of issues is low. Clients can request follow-up with the installer. Low level non-compliances might involve minor issues with system signage or documentation and very minor design issues where resulting underperformance is negligible.
5. Opportunities for Improvements
   These are cases where improvements could be made, but the system is not affected. These opportunities are presented in the audit report but are typically not followed up with the installers. Examples of opportunities for improvements include messy conduit runs, messy system signage or documentation, inverters close to office locations where noise could be annoying, rubbish or debris left behind from installation, or cable tray/conduits visible from the street.

To ensure your solar project is compliant or to check if your system is eligible for an audit, contact your SES Account Manager to find out more about our end-to-end procurement process. Chat to our team of experts by filling out our contact form or calling us on (02) 9371 4153.

*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.

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How can your business keep track of your gas consumption and avoid penalties?

With gas prices rising significantly over the past 12 months so have contract penalties. Retailers have provided a range of tools to enable large gas users to monitor their consumption against their contracted volume and avoid penalties.

However, the responsibility then lies with the end user to ensure that they meet their contract obligations.

Here are our top tips to keep track of your business’s consumption and avoid penalties:

✔️ Review your gas bill each month

Most bills contain a combination of tables and charts that illustrate your gas usage by month / contract year to date against contracted volume. It is essential that a decision-maker / facilities manager is checking this information each month and tracking against contracted volume. We are seeing that gas bills are too often left to an accounts team to pay who are not involved in the contract negotiations and by the time a decision-maker is made aware of any issues, it is often too late. 

✔️ Find out if your retailer has an online portal

Most retailers have an online portal that allows you to download specific daily data (usually 30 days in arrears) to enable you to check your gas usage in more detail. This data will enable you to make decisions about your future period’s consumption.

✔️ Install real-time monitoring equipment

Real time monitoring equipment is available at a cost from third party suppliers in the market. If you need more certainty regarding your daily usage and want to proactively avoid a penalty, then this is the best option to give you control on site.

✔️ Contract variation ahead of time

Some retailers will allow a contract variation; however, this needs to take place 3-6 months before your anniversary date and will often require documentation outlining the reason for the change in forecast. More often than not, these discussions are taking place too late making it difficult to avoid a penalty.

By staying informed and ahead of gas market developments and contract complexities, you can effectively manage costs and avoid penalties, ensuring a stable energy future for your business.  

📢 For more information download our Gas Limit and Penalty Guide Factsheet – click here

AND register for our next Webinar: Understanding Large Market Gas Contracts  – click here for details.

To discuss your business’s gas needs or future contracts, chat to our team of experts by filling out our contact form or calling us on (02) 9371 4153.

*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.

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