Time to checkout peak prices
What time do you use most of your electricity? Understanding how the price of your electricity can change depending on when you use it, could help you save money.
The Checkout ran a segment on how to reduce power bills if you have peak prices and provides an easy, clear way of explaining how this type of pricing works.
Watch the clip and read on to see if a Time of Use tariff is right for you. Energy Made Easy can help you find the right plan if you decide to switch to a Time of Use tariff.
A time of use tariff means that electricity is price differently at differnt times of the day:
- Peak—electricity costs the most during these hours. Peak rates usually apply in the evening Monday to Friday (around 4-9pm – when the network is most congested).
- Shoulder—electricity costs a bit less than peak. Shoulder rates usually apply in between peak and off-peak periods.
- Off-peak—when electricity is cheapest. Off-peak rates usually apply overnight and on weekends
Typical Time of Use changing windows are:
This pie chart shows typicaly times when retailers charge peak, should and off-peak prices.
Peak pricing encourages you to use less electricity between 4pm and 9pm, which is when most people are using electricity. Being on a time of use plan provides opportunities to save money by shifting usage to off peak periods where possible. A time of use tariff plan could be a good choice if:
- You are out a lot in the evenings Monday to Friday
- You are at home during the day or on weekends
- You use your appliances on the weekend, like your washing machine
To get a time of use tariff plan, you need a meter that measures your electricity usage at different times of the day. For example, a smart or interval meter.
Important points to note:
- Time of Use pricing tariffs are not available in all areas yet
- You will only be able to search for flexible pricing tariff plans on Energy Made Easy if they are available in your area
- Retailers will tell you the start and end times of the different periods for their time of use plans in the Basic Plan Information Document or on the retailer's written summary of the plan