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Industries

What drives a commercial electricity bill, by industry

Load shape determines which part of the bill is worth attacking. A restaurant and a cold store have opposite problems, and the advice that helps one actively wastes the other one’s time.

Load factor — consumption divided by peak demand times hours — determines whether supply price or demand charges dominate a commercial bill. Low load factor operations such as restaurants are demand-driven. High load factor operations such as cold storage are supply-driven. The right action differs completely between them.

Industry load profiles, typical electricity use and the resulting priority
IndustryExpected load factorWhat usually dominatesTypical use, kWh per sq ft a year
Restaurantslow to moderateDemand charges and rate schedule fit39.8 (23.1 to 58.8)
Retail and shopping plazasmoderateDemand charges and rate schedule fit9.0 (5.1 to 14.5)
Warehouse and distributionlow to moderateDemand charges and rate schedule fit3.3 (1.6 to 7.8)
Cold storagehighSupply price and contract timingToo few surveyed
Light manufacturingmoderate to highSupply price and contract timingNot in the survey
Property management and multi-site portfoliosvaries by assetDemand charges and rate schedule fitVaries by property
Auto dealershipslow to moderateDemand charges and rate schedule fit9.0 (5.1 to 14.5)
Medical and dental officeslow to moderateDemand charges and rate schedule fit12.7 (7.6 to 19.7)
Hotels and hospitalitymoderate to highSupply price and contract timing14.1 (8.9 to 20.8)
Grocery and conveniencehighSupply price and contract timing47.7 (33.2 to 70.7)
Commercial officelow to moderateDemand charges and rate schedule fit10.2 (6.1 to 15.7)
Fitness and recreationmoderateDemand charges and rate schedule fit8.6 (6.5 to 16.5)
Schools and collegeslow to moderateDemand charges and rate schedule fit9.7 (6.2 to 13.2)
Places of worshiplowDemand charges and rate schedule fit4.2 (2.5 to 7.5)
Nursing homes and assisted livingmoderate to highSupply price and contract timing20.0 (8.9 to 28.2)
Auto repair shops and garageslow to moderateDemand charges and rate schedule fit4.6 (2.4 to 8.7)
Salons, laundries, car washes and other service businesseslow to moderateDemand charges and rate schedule fit6.2 (3.1 to 10.7)
Self-storage facilitiesmoderateDemand charges and rate schedule fit3.3 (1.6 to 7.8)

Load factor bands are analytical expectations about load shape used to prioritise work. They are not survey statistics and they are not a substitute for reading a specific account. Typical use is the median of the surveyed buildings of that type in the federal 2018 building survey, with the middle half in brackets; where the survey has too few buildings of a type, or none, the cell says so. Estimate your own building.

Why this distinction decides the advice

Two commercial buildings can use identical annual kilowatt-hours and receive completely different bills, because a bill is priced on both how much you use and how hard you draw. A restaurant concentrates its draw into service periods; a cold store draws steadily around the clock. The restaurant pays disproportionately for its peaks; the cold store pays for its volume.

That single difference reorders everything downstream. For a low load factor operation, demand charges and rate schedule fit usually carry more recoverable cost than the supply rate, and those live in the regulated half of the bill that no supplier can quote on. For a high load factor operation, the supply contract and its renewal timing genuinely are the main event.

Most advice in this category ignores the distinction entirely and recommends switching suppliers to everyone, because switching is the only action that pays a commission. That is why an industry page here starts with load shape rather than with a rate.