Is your energy bill working against you?
For construction material processing businesses, energy is a major cost. Most are unknowingly overpaying.
Energy is rarely the first thing on a processing business owner’s mind. It’s easy to treat the bill as a fixed cost – something that arrives, gets paid, and gets filed. But for members operating kilns, crushers, conveyors, and heavy processing equipment, electricity and gas are among the most significant variable expenses in the business.
In Australia’s deregulated energy market, what you pay is not fixed at all – it depends entirely on when you last reviewed your contract, and whether you had the right information at the time.
The Australian energy market is complex, but you can control how you engage by understanding tariffs, contract expiries, and market rates.
Understanding your bill Is the starting point
Most businesses are on one of three tariff structures:
- A flat single rate applied regardless of the time of day;
- A time-of-use arrangement where peak and off-peak rates vary; or
- A demand-based structure where your highest single point of usage in a billing period drives a significant portion of the charge.
For processing operations, that last one matters enormously – turning on multiple pieces of equipment simultaneously can spike your demand charge well beyond what your actual consumption would suggest.
Beyond the unit rate, there are layers most businesses never scrutinise: network tariff charges, exit clauses that trap you in underperforming contracts, and discount structures that vanish the moment a payment is late.
A low advertised rate can easily be eroded by these conditions, which is why comparing plans requires a full contract audit, not just the headline number.
Another common mistake is comparing quotes based on a single month’s usage. Energy costs in this sector swing significantly across seasons – cooling loads, production peaks, and weather-driven demand all shift the picture. Without 12 months of consumption data as your baseline, any comparison is incomplete.
Timing matters too. Businesses that let contracts auto-roll at expiry default to rates well above what a competitive market would offer. Engaging proactively – ideally three to six months before your end date, gives you leverage. Leaving it until you’re month-to-month does not.
Businesses saving the most on energy aren’t necessarily the biggest – they’re the ones who stopped treating their bill as a fixed cost.
How CMPA Members can take action
Choice Energy, one of Australia’s largest energy brokers, recently joined CMPA to give members direct access to independent energy expertise.
Having helped more than 13,000 Australian businesses reduce their costs across electricity, gas, and commercial solar, Choice Energy works across industries including manufacturing, construction, and property, bringing cross-sector market intelligence that goes well beyond what any single business could access alone.
They compare live offers across a broad panel of retailers on your behalf, review your tariff structure, and identify savings opportunities specific to your operation at no cost.
Get your free energy bill health check
CMPA Members can access an energy bill assessment through Choice Energy. Simply send a copy of your latest electricity or gas bill to Alycia McCarthy, Partnerships Specialist via [email protected] or for more information call her on 0478 670 420 for a confidential discussion.
Choice Energy recently joined the CMPA as an Associate Member. We look forward to working with them and representing their business.
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