Time of Use Tariffs Explained

Peak and off-peak electricity times explained

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In this Canstar Blue article, we discuss the various peak and off-peak electricity times available to Aussie households. We also explain how these work through examples from the Big 3 providers.

When it comes to electricity, it’s easy to get confused by all the ‘buzzwords’ and acronyms, with ‘peak’ and ‘off-peak’ some of those most widely used but easily misunderstood of them. Understanding peak electricity hours and off-peak electricity hours is crucial to reducing your overall power costs – provided these times and rates apply to you.

So, what does it mean if you see these words on your power bills, or used with plans you’re comparing? In this guide, we’ll explain how peak and off-peak electricity rates differ, what times of day they apply, and who actually pays these different charges.

What does ‘peak usage’ mean on my bill?

Most of us will see the words ‘peak usage’ on our electricity bills, but this will mean different things to different customers, depending on the type of energy tariff you’re signed up to.

  • If you have a single rate tariff, you pay the same price for electricity regardless of what time of day you use it. However, energy retailers still refer to these prices as ‘peak usage’. This is especially true if you have a controlled load whereby you pay for hot water heating or your pool pump at a reduced rate.
  • If you have a time of use tariff, you pay different prices for electricity depending on what time of day you use it. In this instance, the ‘peak usage’ component of your bill will reflect the amount of energy used during electricity peak hours.

You will find peak usage information and costs alongside all other cost details – including other tariffs – on your bill. In the case of a household on a single rate tariff, the peak usage component will simply reflect all energy usage (with the exception of a controlled load, if applicable), while those on a time of use tariff will see peak usage costs next to off-peak and ‘shoulder’ costs (the time between peak and off-peak hours, if applicable), as well as daily supply charges.

The below example is an AGL bill for a household with a time of use tariff.

How do I know if I am on peak and off-peak electricity rates?

You will only pay peak and off-peak electricity rates if you have signed up to a ‘time of use’ or ‘flexible pricing’ tariff. To do this, you will need to have a smart meter installed at your property.

You should only be on a time of use tariff if you have discussed this option with your energy retailer and believe it will prove financially beneficial (i.e. if you generally use more power during the day or late at night rather than the early evening). Canstar Blue research has shown that time of use tariffs can prove a costly mistake if your energy usage habits don’t correlate appropriately.

If you have a single rate tariff, you could easily get confused and think you pay different rates for power at different times of day. You may have been delaying your household appliances for years, for no reason. The reality is that the vast majority of Australian households are on a single rate tariff. If you’re not sure which tariff you’re on, check your bill or contact your energy retailer.

Peak and off-peak electricity times

Peak, off-peak and shoulder electricity usage times vary between energy retailers and states, but as a general guide, we have listed times for AGL, Origin and EnergyAustralia below. If you’re with a different retailer, you can check their peak and off-peak usage times, and charges, by reviewing their energy price fact sheets.

EnergyAustralia peak and off-peak electricity times

Energy Australia logo

Here are the peak, off-peak and shoulder periods offered by EnergyAustralia on a time of use tariff in each state. Please note that these time periods may change in the future which is why it’s always best to refer to the energy price fact sheets.

VIC (Citipower)

  • Peak: 3pm to 9pm every day
  • Shoulder: Not applicable
  • Off-peak: 9pm to 12am and 12am to 3pm every day

NSW (Ausgrid)

In NSW, EnergyAustralia goes a step further and offers peak and off-peak electricity rates which differ between the summer and winter months. This is known as a seasonal time of use tariff.

Summer (1 Nov to 31 Mar):

  • Peak: 2pm to 8pm on weekdays
  • Shoulder: 7am to 2pm and 8pm to 10pm on weekdays, 7am to 10pm weekends
  • Off-peak: 10pm to 7am every day

Winter (1 Jun to 31 Aug):

  • Peak: 5pm to 9pm weekdays
  • Shoulder: 7am to 5pm and 9pm to 10pm weekdays, 7am to 10pm on weekends
  • Off-peak: 10pm to 7am every day

Non Summer/Non Winter (1 Apr to 31 May & 1 Sep to 31 Oct):

  • Peak: Not applicable
  • Shoulder: 7am to 10 pm every day
  • Off-peak: 10pm to 7am every day

QLD (Energex)

EnergyAustralia doesn’t currently offer a time of use tariff to its Queensland customers. It does however, offer a demand tariff, which has a peak time from 4pm to 9pm.

SA (SA Power Networks)

  • Peak: 12am to 1am, 6am to 10am and 3pm to 12am on every day
  • Shoulder: 10am to 3pm every day
  • Off-peak: 1am to 6am every day

While the times mentioned above are indicative, be aware that off-peak and peak hours can vary marginally between the different distribution networks in Victoria and NSW.

EnergyAustralia Single Rate Pricing

If you’d rather pay the same price for power no matter the time of day, below we have listed EnergyAustralia’s current plans and estimated annual costs. See our comprehensive breakdown of EnergyAustralia’s offers for more information, or use our comparison tool above for specific quotes in your area.

Here are the EnergyAustralia plans on our database for NSW. 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 3911kWh/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 the EnergyAustralia plans on our database for Victoria. 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 the EnergyAustralia plans on our database for SE QLD. 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 4613kWh/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 the EnergyAustralia plans on our database for South Australia. 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 4011kWh/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.

AGL peak and off-peak electricity times

AGL peak and off-peak timesPeak and off-peak electricity times from AGL vary between states:

VIC (Citipower)

  • Peak: 3pm to 9pm every day
  • Shoulder: Not applicable
  • Off-peak: 9pm to 12am and 12am to 3pm every day

NSW (Ausgrid)

  • Peak: 2pm to 8pm weekdays
  • Shoulder: 7am to 2pm and 8pm to 10pm weekdays, 7am to 10pm weekends
  • Off-peak: 10pm to 7am every day

QLD (Energex)

  • Peak: 4pm to 8pm weekdays
  • Shoulder: 7am to 4pm and 8pm to 10pm weekdays, 7am to 10pm weekends
  • Off-peak: 10pm to 7am every day

SA (SA Power Networks)

  • Peak: 12am to 1am, 6am to 10am and 3pm to 12am every day
  • Shoulder: 10am to 3pm every day
  • Off-peak: 1am to 6am every day

AGL Single Rate Pricing

Being on a flexible pricing tariff naturally means you’ll pay different electricity rates depending on the time of day you use power. But if you’d rather pay the same price regardless of the time of day you use energy, listed below are AGL’s current electricity plans. See our comprehensive breakdown of AGL’s offers for more information, or use our comparison tool above for the most specific quotes in your area.

Here are the AGL Energy plans on our database for NSW. These are products from a referral partner†. 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 3911kWh/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 the AGL Energy plans on our database for Victoria. These are products from a referral partner†. 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 the AGL Energy plans on our database for SE QLD. These are products from a referral partner†. These costs are based on the Energex energy network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4613kWh/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 the AGL Energy plans on our database for South Australia. These are products from a referral partner†. 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 4011kWh/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.

Origin peak and off-peak electricity times

origin-energy-logo

Peak and off-peak electricity times from Origin are as follows:

VIC (Citipower)

  • Peak: 3pm to 9pm every day
  • Shoulder: Not applicable
  • Off-peak: 12am to 3pm and 9pm to 12pm every day

Please keep in mind that these rates are based on the defaulted two-period time of use tariff in Victoria. Origin also offers a five-day time of use tariff or flexible pricing tariff which come with varying peak and off-peak times to those listed above.

NSW (Ausgrid)

1 Nov to 31 Mar:

  • Peak: 2pm to 8pm weekdays
  • Shoulder: 7am to 2pm and 8pm to 10pm weekdays, 7am to 10pm weekends
  • Off-peak: 10pm to 7am every day

1 Apr-31 May & 1 Sep-31 Oct:

  • Peak: Not applicable
  • Shoulder: 7am to 10pm every day
  • Off-peak: 10am to 7am every day

1 Jun to 31 Aug:

  • Peak: 5pm to 9pm weekdays
  • Shoulder: 7am to 5pm and 9pm to 10pm weekdays, 7am to 10pm weekends
  • Off-peak: 10pm to 7am every day

Please note, the above rates refer to Origin’s seasonal time of use tariff.

QLD (Energex)

  • Peak: 4pm to 8pm weekdays
  • Shoulder: 7am to 4pm and 8pm to 10pm weekdays, 7am to 10pm weekends
  • Off-peak: 10pm to 7am every day

SA (SA Power Networks)

  • Peak: 6am to 10am, 3pm to 1am every day
  • Shoulder: 10am to 3pm
  • Off-peak: 1am to 6am

Origin Single Rate Pricing

Time of use electricity tariffs are not for everyone, so if you’d rather pay the same prices every hour of the day, below are listed Origin’s electricity plans with estimated annual costs. See our comprehensive breakdown of Origin’s offers for more information, or use our comparison tool above for a specific quote in your area.

Origin Energy Prices NSW

Here are the Origin Energy plans on our database for NSW. These are products from a referral partner†. 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 3911kWh/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.

Origin Energy Prices VIC

Here are the Origin Energy plans on our database for Victoria. These are products from a referral partner†. 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.

Origin Energy Prices QLD

Here are the Origin Energy plans on our database for SE QLD. These are products from a referral partner†. 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 4613kWh/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.

Origin Energy Prices SA

Here are the Origin Energy plans on our database for South Australia. These are products from a referral partner†. 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 4011kWh/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.

Peak vs off-peak electricity prices

As you would expect, using power during peak times of day, rather than at off-peak times, will naturally result in higher costs – and higher bills. You can typically expect peak electricity prices to cost upwards of 40c per kilowatt hour (kWh), with some retailers charging as much as 60c/kWh in some cases. Off-peak electricity prices generally tend to sit around the 15c-25c/kWh mark depending on location, although some retailer have been known to charge under 10c/kWh before for either shoulder or off-peak times.

As you can see, there is a dramatic difference in peak and off-peak prices, so shifting a good percentage of your daily energy usage to off-peak times would clearly be a smart move – if you are signed up to a time of use tariff. However, given the huge price difference – and the fact that you may have trouble delaying much of your energy usage to off-peak hour, you could be better off sticking with the certainty of a single rate tariff, whereby you’ll pay the same price for power at all times. For a time of use tariff to work out cheaper than a single rate tariff, you will likely need to shift about a third of your daily energy requirements to off-peak hours (generally 10pm to 7am).

Should I use peak and off-peak electricity rates?

Peak and off-peak electricity rates can be beneficial for some households but unfortunately, it isn’t a one size fits all scenario. If you’re home and use lots of power in the early evening, this is likely not the best move for you. You will need to reduce your peak time energy usage to a minimum to be better off, whereas, if you are on a single rate tariff, you won’t need to worry about what time of day you use power.

But, if you use quite a large portion of your power during the day or in the later evening, or you have a solar battery to store excess solar power in (if you have solar panels), then you may find some use in having cheaper rates during off-peak and shoulder periods.

It is important to keep in mind, however, that in order to be charged different rates at peak and off-peak times you will need to have a smart meter installed at your property AND be signed up to a time of use or flexible pricing tariff.

Whatever type of tariff you’re on though, it’s always a smart move to regularly compare providers, plans and prices, to avoid paying too much. If it’s been a while since you compared energy providers, head to our free comparison tool by clicking the link below.

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Kelseigh Wrigley
Energy Specialist
Kelseigh Wrigley covers Australia's retail energy market, growing her industry specific expertise over the last 2 years. She holds a Bachelor of Journalism at the Queensland University of Technology and has contributed her skills to online publications Hunter & Bligh and local radio station 4ZZZ.

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