What is a controlled load?

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Controlled loads explained

A controlled load is a type of electricity rate reserved for large, high-energy-usage appliances that are metered separately from the rest of a property.

Typically, a controlled load tariff is commonly used for high-consumption appliances, such as:

• Hot water systems
• Pool pumps
• Underfloor heating
• Slab heating

Customers may have the option to connect multiple appliances, depending on their network and metering setup.

How does a controlled load tariff work?

On a controlled load tariff, electricity usage of nominated appliances on a dedicated circuit is priced at a lower rate than energy used throughout the rest of the property.

All other electricity usage is charged at a general usage rate, be it a single rate, time of use, block rate or another tariff.

However, the catch with controlled load tariffs is that electricity is only supplied to the nominated appliances for a limited number of hours each day, depending on the type of controlled load.

You should also note that you may be charged a ‘supply charge’ for a controlled load tariff, in addition to the standard usage charge.

This is a charge of a few cents and applies each day you remain connected to the network.

When do controlled loads operate?

Your electricity distributor is responsible for determining which hours electricity is supplied on a controlled load tariff, so these will vary depending on where you live.

But it will typically be for eight to 18 hours each day at non-peak energy demand periods to reduce strain on an overloaded grid during peak times.

Like a time-of-use tariff, a controlled load tariff is time-varying, with different hours attracting different electricity rates.

Do controlled loads work the same way across Australia?

Controlled load tariffs may also be called something else depending on your state and energy retailer, but each functions the same way. Some controlled load names/types by state include:

• NSW: Controlled load 1 and controlled load 2
• VIC: Controlled load or dedicated circuit charge
• QLD: Tariff 31 and Tariff 33
• SA: Controlled load
• TAS: Tariff 62 or Tariff 63 (previously Tariff 61, no longer offered to new customers)
• ACT: Controlled load 1 and controlled load 2

While Victoria and South Australia households only have one type of controlled load, Australian Capital Territory, New South Wales, Queensland and Tasmania customers have two – controlled load 1 and controlled load 2.

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• NSW
• VIC
• QLD
• SA

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Controlled load 1 vs controlled load 2

The biggest difference between controlled loads 1 and 2 is that controlled load 1 is cheaper than controlled load 2.

However, electricity is available for longer periods on controlled load 2, making it the more versatile option.Controlled load 1 is usually offered overnight, at a time when demand on the grid is at its lowest. Controlled load 2 offers more flexibility as it’s split into day and night hours, including higher-use periods such as 7am-5pm.

Remember that controlled load 1 and controlled load 2 tariffs are designed to suit different purposes. While controlled load 2 is more expensive than 1, electricity is supplied for longer hours.

Essential Energy recommends a controlled load 2 for smaller electric hot water systems, including solar hot water, slab heating or pool pumps. It’s important to consider the trade-off between your ideal electricity rates and operating hours.

Can a controlled load save me money?

A controlled load tariff can help most households save money, provided you’re comfortable with limiting the operating hours of certain appliances to non-peak times.

How much it could save you will depend on:

• Your energy provider and location: Electricity rates vary considerably across different states, distribution networks and retailers.
• Size of your nominated appliance: The larger an appliance tariffed on a controlled load is, the more you could stand to save.
• Number of nominated appliances: If permitted, having more appliances metered on a controlled load tariff could save you more money.

To give you an idea of what you could pay on your energy bill with a controlled load, we’ve calculated the quarterly estimated costs for single rate, controlled load 1 and controlled load 2 for each state.

Note: This is a general guide based on average usage assumptions on each distribution network across Australia. 

Based on Canstar Blue calculations, households in Tasmania were able to, on average, save the most by switching to a controlled load while households in Victoria were least likely to benefit from making the switch.

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Is a controlled load worth it?

Most households should be able to save money with a controlled load tariff. While the exact amount of savings varies, it’s unlikely that a controlled load will leave you worse off.

That said, if your controlled load tariff includes a supply charge, you might end up spending more than is necessary if your home is often left empty, or your controlled load appliances aren’t being used. This is because supply charges apply regardless of whether any electricity is consumed.

It’s also important to consider whether you’re comfortable with the electricity supply being limited to off-peak hours for your nominated appliances.

While you’re researching different electricity tariffs, it’s also worthwhile to compare electricity offers in your area to secure a better deal

Depending on where you live, different retailers may offer more competitive controlled load rates than others.

Click the button below to compare electricity providers on our database.

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