There are three main network pricing structures for small business - a single flat rate, a time-of-use rate with a peak period during weekdays, and a demand-based rate. Most of Victoria’s small businesses currently have a single flat rate or a time-of-use rate with a peak period from 9am to 9pm on weekdays. However, we recognise that some businesses cannot easily shift their energy use to avoid peak times and we consider this when designing our plans.

Network tariff structures need to suit the changing energy landscape, where more and more businesses are installing solar panels and battery storage. We want to manage peak demand while avoiding costly upgrades to the networks, which would lead to higher prices for everyone. Our goal is to provide efficient and fair pricing for small businesses through tariff structures that are simple, efficient and adaptable to the demands of a net zero future.

We're proposing to align small business tariff structures and assignment rules across Victoria, and to achieve this, have teamed up with Victoria’s other electricity distributors to create the Small Business Network Pricing Consultation Paper.

We're seeking input from small businesses on how their electricity distribution costs will be charged for in the next regulatory reset period, from 2026-31.

What we're proposing

We believe the current pricing structures are still fit-for-purpose, and we’re proposing to keep them in the next period, along with the rules for assigning tariff structures to different businesses.

Our plan:

• The two-tiered time-of-use rate would remain the default network tariff.
• Retailers will continue to have the option to switch their small business customers to another network tariff structure, except single-rate network tariffs will not be available to businesses with a fast EV charger.