When a business power bill hurts, the first instinct is often to buy something: solar, a battery, new lighting, a control system or power-factor equipment.
That can be the right answer, but only after you know which part of the bill is causing the cost. An energy audit should find the cost before it sells the fix.
I’m Joe from Smarta Switch. We start with the bill and contract because they are quick to test. Technical efficiency work comes next, using measurements that match the size and complexity of the site. We’re paid by the energy retailer when you switch, never by you.
The short answer
A useful business energy audit has four layers:
- Price and contract: are you paying competitive retail rates on sensible terms?
- Network and tariff: is the site classified and billed appropriately?
- Demand and load shape: when does the site create its peak and why?
- Consumption and equipment: where are the kWh going, and which changes repay their cost?
Skipping the first three can lead to expensive equipment being sized against the wrong problem.
Bill review versus energy audit
A bill review and an energy audit overlap, but they are not the same job.
| Review | Main questions |
|---|---|
| Bill and contract review | Are the rates, fees, dates, tariff and billing calculations right? |
| Load and demand review | What creates maximum demand, and when does it occur? |
| Energy efficiency audit | Which equipment, controls and behaviours drive consumption? |
| Investment assessment | Which changes have a credible cost, saving, payback and verification method? |
For a small office or shop, the first pass may be done with bills, operating hours and a walk-through. A manufacturing or cold-storage site may need interval data, sub-metering, power-quality measurements and a formal assessment team.
The Australian Government advises matching the depth of an energy efficiency assessment to the organisation’s size, energy spend and available resources.
Stage 1: establish the baseline
Collect:
- 12 months of electricity and gas bills;
- the current contract or energy plan summary;
- every site NMI and MIRN;
- operating hours, shutdowns and seasonal changes;
- production, occupancy or sales data that explains activity;
- major equipment and rated capacity;
- interval data, if available; and
- recent changes such as new machinery, longer trading hours or a moved production line.
One high bill tells you there is a question. A 12-month baseline helps show whether it is a trend, a seasonal pattern or an isolated event.
For a growing business, compare energy with an output measure. That might be kWh per meal, pallet, tonne, square metre, occupied room or dollar of revenue. Total usage can rise while energy productivity improves, and the reverse can also happen.
Stage 2: audit the contract and retail costs
Check:
- contract end date and notice window;
- standing, market or negotiated contract type;
- each usage rate;
- daily supply and account fees;
- demand rate and unit;
- metering charges;
- environmental and other pass-through costs;
- exit and rollover terms; and
- whether the retailer has a better current offer.
Do not compare a new offer with one month’s invoice. Model both contracts over the same 12-month usage and demand profile.
For eligible small businesses, use Energy Made Easy or Victorian Energy Compare as an independent benchmark. For complex or C&I customers, compare suitable retailer tenders against actual load data.
Stage 3: audit the network tariff
The distributor sets the network tariff structure. The retailer presents or passes through those costs according to the contract.
Confirm:
- distributor and network tariff code;
- flat, time-of-use or demand structure;
- demand unit, window and ratchet rules;
- whether operating hours still suit the tariff;
- whether the site’s load has changed since classification; and
- whether another tariff can be assessed through the retailer or distributor process.
A tariff change is not automatically a saving. Run the site’s real profile through both structures before requesting a move.
Stage 4: map the load shape
Interval data shows when the site uses energy, usually in 30-minute or shorter blocks. Look for:
- overnight baseload when the business is closed;
- morning start-up spikes;
- simultaneous motor, refrigeration or HVAC starts;
- peak-period production that could move;
- weekend load with no matching business activity;
- seasonal cooling or heating changes; and
- one event setting a monthly demand maximum.
The Australian Government’s demand-side guidance notes that load shifting and peak shaving can reduce energy costs, but they should be assessed against operational requirements and actual tariff exposure.
Stage 5: walk the site by system
Review each major system rather than walking around looking for random devices to replace.
Heating, ventilation and air conditioning
Check schedules, set points, maintenance, simultaneous heating and cooling, outside-air controls, zoning and after-hours operation.
Refrigeration and cold rooms
Check door seals, defrost cycles, condenser condition, temperature set points, night covers, heat rejection and whether several compressors start together.
Motors, pumps, fans and compressed air
Check motor loading, controls, leaks, pressure settings, idle running, variable-speed opportunities and power factor where relevant.
Lighting
Check lamp type, lux levels, controls, sensors, daylight use and lights running outside occupied hours.
Process equipment
Connect energy use to production. Identify warm-up, idle, cleaning, batch size, bottleneck and shutdown patterns before recommending replacement.
Solar, batteries and onsite generation
Measure daytime load, exports, demand exposure, roof or site constraints and maintenance needs. Size the option against the corrected baseline, not an inflated bill.
Stage 6: build an opportunity register
Record every idea in one table:
| Field | What to capture |
|---|---|
| Opportunity | The exact change being considered |
| Evidence | Bill, interval data, measurement or observation supporting it |
| Cost reduction | Annual estimate with assumptions stated |
| Implementation cost | Equipment, labour, design, disruption and maintenance |
| Payback | Simple payback plus any risk or sensitivity |
| Owner | Person responsible for the next action |
| Timing | Immediate, planned shutdown, contract renewal or capital cycle |
| Verification | How the result will be measured after implementation |
Rank no-cost and low-cost actions first, then capital work. A contract rebid, timer correction or overnight shutdown may be worth doing before a large project, even if the large project eventually goes ahead.
Stage 7: verify the result
An estimate is not a banked saving.
After a change:
- define the implementation date;
- compare energy against the original baseline;
- adjust for production, occupancy, weather or operating-hour changes;
- confirm the bill and tariff behave as modelled;
- investigate unintended peaks or comfort problems; and
- report the verified result to the decision maker.
For large projects, agree on the verification method before approving the spend.
How to run a first-pass business energy audit
- Collect 12 months of bills and the current contract. Build a baseline across seasons and confirm the contract position.
- Separate the bill into controllable buckets. Mark retail, network, demand, metering, environmental and tax lines.
- Check the tariff and load shape. Use interval data to identify baseload, peaks, operating windows and abnormal events.
- Walk the major systems. Review HVAC, refrigeration, motors, compressed air, lighting and process equipment against operating schedules.
- Create an opportunity register. State evidence, cost, expected reduction, payback, risk, owner and timing for every action.
- Implement in a sensible order. Start with contract, billing, control and maintenance opportunities before sizing capital projects.
- Measure the result. Compare against the baseline and verify the change on actual bills and operating data.
When to bring in a professional
Use appropriately qualified help when the audit involves:
- electrical safety or switchboard work;
- formal compliance or Australian Standard requirements;
- power-quality or harmonic measurements;
- major HVAC, refrigeration or process redesign;
- solar, battery or onsite generation design;
- complex measurement and verification; or
- large capital approval.
The Australian Government says formal energy audits should be completed to the relevant Australian Standards. A bill review can identify where to investigate, but it is not an electrical or engineering certification.
Start with one bill
You do not need to commission a full technical audit to answer the first commercial questions. Upload a recent bill and we’ll separate the contract, tariff, demand and obvious billing signals. If the real opportunity is operational or technical, you’ll know what evidence to collect before paying someone to design the fix.
Joe Lawrence, Co-founder, Smarta Switch Australia