You may have heard the terms large market and small market when discussing your body corporate electricity bill. These classifications matter because they directly affect your costs, contract options, and rights as a consumer.
When a body corporate or building manager receives an electricity bill for the common property, the account will generally fall into one of two categories. Each category comes with different pricing structures, levels of flexibility, and potential savings.
1. What Defines a Large Market vs a Small Market Site?
Large Market A site is classed as large market when its electricity demand exceeds a regulatory threshold — usually around 100 MWh per year or when its peak demand is above 100 kVA. Large market customers are treated as commercial consumers, meaning they have access to negotiated contracts and wholesale-aligned pricing. Small Market A small market site consumes below the large market threshold. These customers pay standard retail business tariffs, similar to residential billing but under a commercial account.
2. Contract Structure
Large Market – Prices are negotiated – Contract terms typically range from 1 to 4 years – Pricing includes energy rates, network charges, market charges, and environmental charges – More complex but often offers significant cost savings Small Market – Placed on standard business tariffs – No wholesale exposure – Simple, predictable contract terms
3. Pricing Structure and Volatility Large Market
Prices may link to wholesale energy markets – Can be fixed or stepped (reducing year-on-year) – More complex but can deliver long-term savings Small Market – Predictable retail tariff pricing – Lower volatility and straightforward bills
Conclusion
The key difference between a large market and a small market common area bill comes down to energy thresholds, pricing flexibility, and contract structure. Large market sites benefit from negotiated rates and strategic energy management, while small market sites gain predictable retail pricing. Hum Energy works with both categories to secure the best possible outcomes for your body corporate.
How Hum Energy Helps For Small Market Sites:
Hum Energy has partnered with Hartley’s to secure independent, competitive market pricing for all Hartley’s small market customers. As a result, Hartley’s clients now receive a substantial discount for their common power with Origin Energy. For Large Market Sites: Hum Energy monitors market pricing and trends daily, advises when to renew contracts, tenders on your behalf, and ensures your site secures the most competitive and suitable energy contract.