KEY POINTS
- A single-rate tariff has the same usage rate throughout the entire day.
- Time of use tariff charges are split into three daily time periods: peak, off-peak and shoulder.
- Single rates are good for households using energy at night, while time of use is good for homes with solar batteries avoiding grid electricity at night.
Electricity plans can be daunting, especially when considering the different types of tariffs. That’s why this Canstar Blue guide compares single rate vs time of use tariffs.
On this page:
What is a single rate tariff?
A single rate tariff has no peak or off-peak periods, which means that customers pay the same rate regardless of the time of day energy is used.
Single rates are typically lower than the peak rates of a time of use tariff, although it may be higher than off peak rates. A single rate plan might be a good choice if you are frequently home on weekday evenings.
Single rate plans don’t require households to install and use a smart meter, which differs from a time of use tariff.
Compare single rate electricity plans
The Canstar Blue table below shows some of the cheapest single rate electricity plans on the market.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
What is a time of use tariff?
A time of use tariff means the price of electricity changes at different times of the day. The time of use periods are split into three categories:
- Peak: When electricity is most expensive, typically in the evenings from Monday to Friday.
- Off-peak: When electricity is cheapest, typically overnight and on weekends.
- Shoulder: When rates are cheaper than peak periods, usually applied between peak and off-peak periods.
To gain access to a time of use tariff, households will need to have a smart meter installed at the property.
When are peak and off-peak electricity times?
Peak and off-peak electricity times vary between Australia’s states and territories.
Generally, off-peak times can fluctuate between 10pm to 7am weekdays and weekends, while peak times can vary between 2pm to 9pm weekdays.
Some states may also offer seasonal variations on time of use tariffs, in which case peak and off-peak electricity times vary across the summer and winter months.
Time of use vs single rate electricity tariff: which is cheaper?
The cheapest tariff type for you will depend on the following factors:
- How and when you use electricity: If you’re constantly using electricity at night, a single rate tariff would be cheaper than peak period grid electricity on a time of use tariff. Conversely, if you’re frequently working from home in the daytime, off-peak grid electricity rates on a time of use tariff are typically cheaper than a single rate tariff.
- Where you’re located: In different states, either tariff will be subject to different rates and pricing — this is especially true for deregulated and regulated markets with reference prices.
- The electricity supplier you choose: Different retailers tend to offer market offers with competitive usage and supply charges — this typically extends to both tariffs.
However, there are a few things to be aware of across various states:
South Australians should note that peak periods on the time of use tariff are some of the longest in Australia, sometimes occurring from 12am-1am, 6am-10am and 3pm-12am, everyday.
In Victoria, smart meters have been rolled out state-wide, which has allowed energy retailers to refine their time of use tariff structures and prices, resulting in no shoulder periods (unlike flexible pricing tariffs).
How can I get the most out of a time of use tariff?
Use electricity during off-peak times
For a time of use tariff to have an impact on your household’s energy bills, you might need to also change some of your energy habits. A large amount of your energy usage will need to occur during off peak or shoulder periods to see a reduction in electricity costs.
Store your own power for peak times
With the use of solar panels and/or a battery, you can generate and store your own energy for use at home as needed. With this option, you could save your solar power for use at peak times and only use power from the grid during off-peak periods.
Invest in a power consumption meter
If you are committed to a time of use tariff, an electricity usage monitor can help you track and optimise your energy usage.
These devices can detect when and where you are using the most energy, which can help you adjust your energy use to better suit your tariff. For example, you may find that running the washing machine in the evening is costing you more than using it in the early morning.
Should I sign up to a time of use tariff?
For larger households with high energy consumption or those primarily using energy during the early evening, a time of use tariff may not be the best option.
If your household consumes a lot of energy during the day, or has access to solar power and/or a battery, a time of use tariff may be beneficial for you. You will need to be mindful of when your tariff’s peak times are and adapt your energy usage for alternate times.
If you are looking to compare single rate vs time of use tariff energy plans or take a closer look at energy providers and prices in your area, click on the Canstar Blue link below.
There you can input your postcode and filter energy plans to suit your specific energy needs.
Original reporting by Simon Downes
Image Source: brizmaker/Shutterstock
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