I’m Joe. I run Smarta Switch with Chloe out of Chelmer, Brisbane. We re-quote business power and gas contracts across South East Queensland, small sites and multi-site C&I both.
After “am I being ripped off?”, the question I get most is: “Should I lock in a fixed rate, or ride the variable one?”
There’s no single right answer, anyone who tells you “always fix” or “always go variable” is selling something. The right call depends on your cash flow, when your current deal ends, and what the wholesale market’s doing. This is the long version of the answer I’d give you over the phone.
If you’d rather skip the reading: upload your last bill and we’ll tell you which way we’d lean for your site, free. We’re paid by the energy retailer when you switch, never by you.
The 30-second version
- Fixed = you lock today’s rates for the contract term (usually 1–3 years). The rate doesn’t move, no matter what the market does. Certainty.
- Variable = your rate can move up or down over the term, usually tracking the market. Flexibility, but no guarantees.
Fixed is insurance. You’re paying for the peace of mind that your unit rate won’t jump mid-contract. Variable is a bet that prices will fall, or at least won’t climb.
For most Brisbane SMEs over the last few years, fixing has been the safer call, because prices have mostly moved one way: up. But “safer” isn’t “always cheaper”, and the gap is narrowing. Read on.
What “fixed” actually means
A fixed-rate contract locks your usage rates (the c/kWh you pay for electricity) for the whole term. Sign a 24-month fixed deal today and the peak, off-peak and shoulder rates on your contract are the rates you’ll pay in month 23.
What it does not lock, and this catches people out:
- Network charges (the poles-and-wires bit, including demand). These are set by Energex and can change each July regardless of your “fixed” deal.
- Government charges and levies, which also move.
- Metering charges in some contracts.
So “fixed” means your energy rates are fixed. The network slice can still shift under you. Anyone who says your whole bill is locked is fibbing, always read which components are actually fixed.
What “variable” actually means
A variable (or “market”) rate can be re-priced by your retailer during the term, usually with 30 days’ notice. When wholesale prices fall, a good variable deal can drop. When they rise, so does your bill.
Variable suits you if you genuinely believe prices are heading down, or if you want the freedom to switch without a fixed term hanging over you. The catch: most variable contracts still have you on a plan, and the retailer controls the dial. You’re trusting them to pass on the falls as fast as they pass on the rises. Some do. Plenty don’t.
The honest trade-off
| Fixed | Variable | |
|---|---|---|
| Rate certainty | Locked for the term | Can move with 30 days’ notice |
| If prices rise | You’re protected | Your bill climbs |
| If prices fall | You miss the drop | You (might) benefit |
| Budgeting | Easy, same rate all term | Harder, rate can shift |
| Best for | Tight cash flow, planners | Risk-tolerant, market-watchers |
Fixed is for people who’d rather know the number. Variable is for people who’d rather chase the number. Neither is wrong, they’re different temperaments and different cash-flow situations.
Who suits fixed
- Tight or seasonal cash flow, cafes, salons, gyms, anyone who needs to know the monthly number to plan. A surprise rate hike mid-winter can hurt.
- You’re renewing into a rising market. If wholesale is climbing, locking today’s rate is cheap insurance.
- You don’t want to think about it. Fix it, set a reminder for 90 days before expiry, get on with running the business.
Who suits variable
- You’ve got headroom and can absorb a bad quarter without it stinging.
- You think prices are about to fall and want to be on the way down, not locked above it.
- You want short-term flexibility, maybe you’re moving sites, closing, or restructuring within the year.
For most small Brisbane businesses, I lean fixed, not because variable’s bad, but because certainty is worth more to a busy owner than a punt on the market. For bigger C&I sites with a finance team watching the wholesale curve, variable (or a part-fixed, part-market structure) can be the smarter play.
The four traps to dodge
1. The silent rollover. When a fixed deal ends and you do nothing, you don’t stay on that nice fixed rate, you roll onto the retailer’s variable “default” rate, which is almost always dearer. This is the single most common way businesses overpay. Set a 90-day reminder. (We’ve got a renewal checklist for exactly this.)
2. “Fixed” that isn’t. Some deals fix energy but leave demand and network charges fully variable. If demand is a big slice of your bill, and for a lot of sites it is, a “fixed” headline rate can still let a big chunk of your bill float. Check what’s actually locked.
3. Long terms at the top of the market. Locking a 3-year fixed deal right when wholesale prices have spiked means you could be stuck above the market for years. Term length matters as much as fixed-vs-variable. Sometimes a 12-month fix beats a 36-month one.
4. Exit fees on variable. Some “flexible” variable deals still ping you with an early-termination fee. Read the exit terms before you assume variable means you can leave any time.
What the market’s doing in 2026
Straight talk: over the last few years, Australian wholesale energy has mostly gone one way, up. Coal closures, gas prices and network upgrades have all pushed it. That’s why fixing has protected a lot of businesses.
Heading through 2026, more renewables and storage are starting to take some heat out of the daytime wholesale price, but evenings and demand peaks are still dear, and network charges keep climbing. The upshot: locking your energy rate still makes sense for most SMEs, but the smart move is to also get your demand and network exposure quoted properly, because that’s increasingly where the bill lives. Don’t just compare the headline c/kWh.
(For the bigger picture, see our Brisbane energy market 2026 guide.)
What to do this week
- Dig out your last bill and check your contract end date. If it’s within 90 days, or already expired, you’re the priority. A rolled-over contract is money walking out the door.
- Check whether you’re fixed or variable right now, and which components are locked. If you can’t tell from the bill, that’s a flag in itself.
- Decide your temperament. Do you want certainty (fixed) or are you happy to ride the market (variable)? There’s no wrong answer, just be honest about your cash flow.
- Get it re-quoted across the market. Upload your bill on this page or email hello@smartaswitch.com.au. We’ll quote both fixed and variable across our retailer panel and tell you, straight, which way we’d lean for your site. Comparison sheet back within 24 hours. No cost, no commitment, we’re paid by the energy retailer when you switch, never by you.
Common questions
Is fixed always more expensive than variable? No. Fixed sometimes carries a small premium for the certainty, but in a rising market a fixed deal signed earlier can be cheaper than today’s variable. It depends entirely on timing.
Can I switch from variable to fixed mid-contract? Usually you switch when your current deal ends (or you negotiate an early move). We’ll check your exit terms before recommending anything, no point copping an early-termination fee to save a few dollars.
What term should I fix for? Depends on where the market’s sitting. When prices look high, a shorter 12-month fix avoids locking in a peak. When they look low, a longer lock makes sense. We’ll give you a view based on the current curve.
Does fixed lock my demand charge too? Often not. Demand and network charges are usually set by Energex and can move each July even on a “fixed” deal. Always check. (More on demand charges here.)
One last thing
Fixed-vs-variable isn’t really the big decision people think it is. The big decision is not letting your contract roll over onto a default rate, that costs far more than picking the “wrong” one of fixed or variable.
So whichever way you lean, the move is the same: know your end date, get it re-quoted before it lapses, and compare the whole bill, energy and demand, not just the headline rate.
If you’d rather have someone do that for you, that’s exactly what we do. Upload your bill, we’ll quote it both ways across the market, and if it’s worth switching we handle the switch end-to-end. Same wires, same poles, new name on the invoice.
Joe Lawrence, Co-founder, Smarta Switch Australia 0435 642 592 · joe@smartaswitch.com.au