Resources
Table of Contents
VDO Changes: A Timely Opportunity for Business Energy Savings
The Victorian Default Offer (VDO) is changing, with new electricity prices coming into effect from 1 July 2026 for the 2026–27 financial year. Businesses should see an average price drop of 6%.
With prices shifting, now is the ideal time for businesses to take action (June–August) by reviewing their current contracts before or shortly after the new rates apply.
Rather than remaining on outdated agreements, businesses can use this market reset to explore more competitive offers and identify additional cost-saving opportunities. Even though only some customers are directly on the VDO, most retailers adjust their market offers around this time.
To support this, many local councils—through the Energy Savers program—offer free energy assessments. These assessments can help businesses:
- Identify immediate cost savings
- Review current contracts against the new market
- Improve energy efficiency and billing accuracy
📌 Take action now
With the VDO update effective from 1 July, businesses should review their energy arrangements to ensure they are capturing the best available value.
Energy Brokers – Pros and Cons
Energy brokers can help medium-sized businesses navigate Australia’s complex energy market, but their value depends on transparency and scope of service.
✅ Pros
- Market expertise: Brokers understand pricing structures, contracts, and trends, helping businesses make informed decisions.
- Market access: They can source offers from multiple retailers, saving businesses from contacting suppliers individually.
- Time savings: Brokers manage quoting, negotiations, and paperwork, freeing up internal resources.
- Potential savings: Strong relationships and negotiation experience can deliver more competitive rates.
- Ongoing support: Some brokers assist with renewals and monitor market changes.
⚠️ Cons
- Conflicting interests: Brokers are often paid by retailer commissions, which can create tension between recommending the lowest-cost option and the most profitable one for the broker.
- Hidden costs: Broker fees may be embedded in less visible charges (e.g. metering), making true costs harder to identify.
- Limited transparency: Not all brokers clearly disclose how they are paid or which retailers they compare.
- Contract risks: Fixed-term agreements can become uncompetitive if market prices fall.
- Gaps in additional services: Some brokers focus only on procurement and may exclude services that further reduce costs, such as:
- Invoice validation (ensuring billed rates match contract terms)
- Direct Metering Agreements (DMA) to minimise metering costs and improve data access
- Network tariff reviews to ensure tariffs remain optimal over time
An Energy Assessment can uncover savings not considered by energy brokers. Apply for a council funded energy assessment here: Energy Advisory Program – Registration Form – Energy Savers
Are you a Sustainable Business and want the world to know it?
The latest research tells us that Australians still prioritise sustainability in the products and services they consume, and even which companies they’d prefer to work for.
But the perception of the language around sustainability has changed and people are losing trust in vague and outdated terminology.
To access all the insights, we encourage you to access the full report by South Pole climate company, for free here:
https://www.southpole.com/news/australians-want-sustainable-products-but–jargon-creates-confusion
Borrow An Energy Kit From Your Local Library
Choose Your Council Below:
– Knox City Council More Energy and Water Saver Kits for loan
– Boorondara Save energy in your home
– Glen Eira Go renewable and electrify your home
– Monash Home Energy Efficiency Kit
– Manningham Energy Saver Kit
– Maroondah My Energy and Water Saver Kit
– City of Casey Sustainable initiatives
– Shire of Yarra Ranges My Energy and Water Saver Kit
Talking to your landlord about energy upgrades
A quick guide for commercial tenants
Frame the conversation
Position upgrades as improving the building’s value and leaseability, not just your energy bills.
Key message:
Energy upgrades make the property cheaper to run, easier to lease, and more future‑ready.
What matters to the landlord
Focus on outcomes they care about:
- Higher property value and tenant appeal
- Lower vacancy risk and better retention
- Improved performance ratings (e.g. NABERS)
- Stronger ESG / net‑zero positioning
Make it easy to say yes
Reassure early:
- Options can start low‑cost and low‑risk
- Accredited providers handle compliance and warranties
- Clear agreements can cover maintenance and end‑of‑lease
What upgrades to consider
Start simple, then scale:
Quick wins
- LED lighting
- Controls (timers, sensors, thermostats)
- Draught sealing
Building systems
- Efficient electric heating & cooling
- Hot water (heat pumps)
Generation
- Solar PV (where lease and roof allow)
Tip: A staged approach reduces cost and risk.
Present workable delivery models
Landlord‑funded upgrades
The landlord funds upgrades as a capital improvement with long‑term benefits.
Tenant‑supported upgrades
The tenant contributes where costs are recovered through rent adjustments, lease extensions, or agreed mechanisms.
Third‑party or financed upgrades
A third party funds and installs upgrades, with costs recovered through savings or agreed charges.
Incentives and programs
Government programs and discounts can significantly reduce upfront costs and improve returns.
Pick the right moment
Raise it during:
- Lease renewals
- Rent reviews
- Other Refurbishments
Heating and Cooling Tips
Heating and cooling are some of the biggest operating costs for hospitality businesses.
By replacing old air conditioners and heaters with more energy-efficient ones, you can use less energy and make significant savings on your energy bills.
Installing double-glazed windows can also help reduce heat loss or heat gain by almost 30% compared to single-glazed windows, so you don’t need to keep heating and cooling systems on all day.
Rebates and discounts are available to make these energy saving measures more affordable.
Five Lesser-Kown Ways to Keep Energy Bills Down
For most small and medium businesses, energy costs feel like one of those “set and forget” expenses. You get the bill, pay it and move on. But here’s the thing: energy waste is often hiding in plain sight, quietly draining your bottom line.
And, with electricity prices only going up, Australian businesses quite literally can’t afford to waste power.
The good news is that you don’t need a massive budget to do something about it. These five tips are practical, proven, and can make a real dent in your 2025 energy bills.
1. Install smart meters
Smart meters don’t just track energy use—they reveal when, where, and how you’re using electricity. This insight helps you make better decisions on upgrades, maintenance, contracts, and daily operations. For a quick overview, check out Energy NSW’s smart meter info page.
2. Empower your team
The most efficient system can still waste energy if staff aren’t on board. Training your team in energy basics—like powering down devices, adjusting air-con settings, or using energy-saving modes—can deliver fast results. Add energy dashboards or challenges to boost engagement and create a culture of shared responsibility.
3. Switch to the cloud
Running local servers or outdated systems? They may be quietly driving up your power bills. Cloud platforms are not only more energy-efficient but also reduce hardware needs, cut maintenance costs, and improve reliability. Look for providers powered by renewables for an added sustainability boost.
4. Automate after-hours
Don’t pay for power no one’s using. Use timers, smart plugs, or basic automation to shut down lights, signage, and equipment outside business hours. Even enabling low-power modes overnight can lead to significant savings—especially in retail, hospitality, or office settings.
5. Tap into local support
You don’t have to tackle energy efficiency alone. Councils across Australia offer programs for small businesses—from subsidised energy audits to bulk-buy deals on LED lighting. Explore initiatives like this one to unlock savings without disrupting operations.
Source: Five lesser-known ways to keep biz energy bills down – Inside Small Business
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