Australian businesses, especially small to medium enterprises (SMEs), often find themselves paying more for energy than they should. This isn't usually due to a lack of effort on your part. Instead, it comes from systemic issues in the energy market and common pitfalls that many businesses fall into.
Let's look at three major problems that cause Australian businesses to overpay for energy. More importantly, we'll discuss how you can avoid them.
Problem 1: You're Paying a 'Loyalty Tax'
Many businesses stay with the same energy retailer for years. You might do this out of habit, or because changing seems like too much hassle. But this loyalty often costs you.
Energy retailers, like any other service provider, offer their best deals to new customers. They want to attract new business. For long-term customers, rates often slowly creep up, or the initial discounts expire without you noticing. This is your "loyalty tax." You pay more just for staying put.
- What to do: Don't assume your current deal is still the best. The market changes constantly. Regular review of your energy procurement options is essential. This often means looking beyond your current provider.
Problem 2: Small businesses are at a structural disadvtantage in the market
Australian small businesses have less negotiation leverage with retailers. Like any other buyers group, Termina gets leverage by grouping thousands of businesses to put power back in the hands of Australian SMEs. WIth Termina’s energy buyers group, businesses have the peace of mind they’re on the lowest available prices.
Problem 3: A Lack of Expert Market Navigation
The Australian energy market is dynamic. Wholesale prices fluctuate, new regulations appear, and retailers constantly update their offers. Keeping up with these changes requires time, specific knowledge, and access to market data. Most SMEs simply don't have these resources in-house.
This lack of expertise means you might miss out on the best available deals. You might also struggle to understand the tariff analysis and management, leaving you exposed to unfavourable pricing. Your internal Facilities Management team focuses on physical assets, not deep market analysis.
- What to do: Consider leveraging Termina. Termina has deep market knowledge. We can compare offers from many retailers on your behalf. We negotiate for you. This ensures you secure the best contract terms for your business, including your asset register and overall energy management needs.
Taking Control of Your Energy Costs
Australian businesses don't have to overpay for energy. By understanding these three systemic problems, you can take proactive steps. Be aware of the "loyalty tax." Get a handle on your Energy Data Management. Work with Termina’s buying group to get power back in your hands.
Taking these steps helps you cut costs. It also puts you in a stronger position for the long term.
