What is time-of-use pricing?
Time-of-use pricing is a powerful way to save money by taking advantage of different electricity prices at different times of the day. The cost of electricity is highest during peak periods (e.g. early in the evening) and cheapest during off-peak periods (e.g. later at night). With time-of-use pricing, you can save money by changing your habits and using your appliances during ‘shoulder’ and ‘off-peak’ periods, rather than ‘peak’ periods.
When are the different pricing periods?
Time-of-use pricing is made up of four charges. There is a supply charge, and three energy charges: ‘peak’, ‘shoulder’ and ‘off-peak’. The timing of ‘peak’, ‘shoulder’ and ‘off-peak’ windows depends on whether you’re a residential or business customer, and if you’re in the ACT or NSW.
Tips for managing a time-of-use pricing plan
- Consider which appliances you could use during off-peak and shoulder periods. For example, your dishwasher, clothes dryer and washing machine. This is called 'time-shifting'.
- Use timers on appliances like dishwashers so they only run out of peak periods.
- Set your air conditioner to a more energy-efficient temperature. For winter, aim for between 18–20℃ and in summer keep the thermostat between 23–25℃.