What large energy users need to know about new tariffs, cost impacts, and how to stay ahead in a changing market
Effective 1 July 2025, the Australian Energy Regulator (AER) has implemented new electricity network tariffs for the 2025–26 financial year, impacting large business customers across various states. These changes aim to enhance cost-reflectivity and encourage efficient energy usage patterns. Understanding these adjustments is crucial for large electricity consumers to manage costs effectively.
State-by-State Summary of Significant Changes
New South Wales (NSW) – Ausgrid, Endeavour Energy, Essential Energy
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Tariff Adjustments: Large low-voltage customers consuming over 160 MWh annually will be reassigned to the new "Large Time of Use Demand and Energy" tariff.
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Obsolete Tariffs: Legacy flat-rate and transitional demand tariffs are being phased out in favour of more dynamic structures.
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Cost Impact: Network charges for large customers are expected to increase by approximately 5.8%, depending on consumption patterns.
Victoria – AusNet Services, CitiPower, Jemena, Powercor, United Energy
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Tariff Reforms: Distributors are implementing cost-reflective tariffs, encouraging time-of-use and demand-based structures.
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New Tariffs: Introduction of dynamic tariffs aimed at customers with flexible consumption patterns.
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Obsolete Tariffs: Legacy flat-rate tariffs are being phased out in favour of more dynamic structures.
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Cost Impact: While specific figures vary, businesses with the ability to shift usage to off-peak times may benefit from lower charges.
Queensland – Energex & Ergon Energy
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Tariff Adjustments: Implementation of new default tariffs for large customers, focusing on time-of-use and demand charges.
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Obsolete Tariffs: Several transitional tariffs will be retired, with customers moved to the new default structures.
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Cost Impact: Customers with high evening demand may see increased charges, while those shifting usage to daytime may benefit.
South Australia – SA Power Networks
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Tariff Reforms: Introduction of tariffs that better reflect the cost of providing network services during peak periods.
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New Tariffs: Time-of-use and demand-based tariffs are now available for large customers.
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Obsolete Tariffs: Phasing out of flat-rate tariffs in favour of more dynamic pricing structures.
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Cost Impact: Businesses with the flexibility to manage peak demand can mitigate potential cost increases.
Tasmania – TasNetworks
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Tariff Adjustments: Continued emphasis on time-of-use tariffs to encourage consumption during off-peak periods.
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New Tariffs: Introduction of tariffs supporting distributed energy resources and storage solutions.
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Obsolete Tariffs: Gradual retirement of non-cost-reflective tariffs.
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Cost Impact: Customers aligning usage with off-peak times may experience cost savings.
Key Takeaways for Large Business Electricity Consumers
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Review Tariff Assignments: Ensure your business is on the most cost-effective tariff. Engage with Austech Power & Gas to discuss potential reassignments.
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Analyse Consumption Patterns: Examine your energy usage to identify opportunities for shifting demand to off-peak periods.
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Invest in Energy Management: Consider technologies like energy storage or demand response systems to optimise consumption and reduce costs.
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Stay Informed: Regularly consult with energy advisors or consultants to stay abreast of tariff changes and opportunities for savings.
Understanding and adapting to these tariff changes is essential for large businesses to manage electricity costs effectively. By proactively engaging with the new structures, businesses can position themselves for potential savings and contribute to a more efficient energy system.