A time of use tariff is an electricity plan that charges a different rate per kilowatt hour depending on the time of day. Power costs the most during the weekday evening peak, less in the shoulder periods, and the least overnight in the off-peak window. It needs a smart meter, because the meter has to record when you used electricity, not just how much.
Many Sydney households end up on one after a smart meter is installed, often without noticing until the bill looks different.
How does a time of use tariff work?
Your smart meter records consumption in 30 minute blocks, and your retailer prices each block according to the period it falls in. A kettle boiled at 6pm on a weekday is charged at the peak rate. The same kettle at 6am is charged at the off-peak rate. Add up every block over the billing period and that is your usage charge, on top of the daily supply charge. The pricing follows the cost of running the network, which is under the most strain when people get home in the late afternoon.
What are the peak, shoulder and off-peak times in NSW?
The windows are set by your network and your retailer, so check your plan fact sheet, but most Sydney plans follow the Ausgrid pattern of a weekday evening peak, daytime shoulder and overnight off-peak. At the time of writing, Ausgrid's residential windows look like this:
| Period | When it applies | Rate |
|---|---|---|
| Peak | 3pm to 9pm on working weekdays, in summer (November to March) and winter (June to August) | Highest |
| Shoulder | 7am to 3pm and 9pm to 10pm on working weekdays, 3pm to 9pm on weekdays in autumn and spring, and 7am to 10pm on weekends | Middle |
| Off-peak | 10pm to 7am every day of the year | Lowest |
Retailers can simplify these windows, for example by charging peak 3pm to 9pm every weekday all year, and Endeavour Energy's area west of Sydney has different network windows again. Some newer plans add a cheap daytime window, often 10am to 3pm, to soak up solar export.
Is a time of use tariff cheaper than a flat rate?
It is cheaper only if you can push a good share of your usage out of the peak window, and dearer if your household naturally runs everything between 3pm and 9pm. A single rate tariff charges one price around the clock. Time of use trades that for a lower off-peak price and a peak rate that is commonly 50 to 100 per cent higher.
Households that tend to come out ahead:
- EV owners who charge overnight. The car is the biggest single load in most homes that have one, and the easiest to schedule.
- Pool owners who can run the filter pump in the off-peak or shoulder hours.
- Solar homes with a battery, which can cover the evening peak from stored daytime power.
Households that often pay more: families running ducted air conditioning through summer evenings, and anyone working from home who cannot shift cooking, laundry and heating. If your bill has jumped and you are not sure why, our guide to why your electricity bill is so high covers the usual causes, and a tariff change after a meter upgrade is one of them.
Is time of use the same as controlled load?
No. Controlled load is a separate, cheaper tariff for one dedicated circuit, usually electric hot water, that the network can switch on and off, while time of use prices everything in the house by the clock. The two run side by side in many Sydney homes: general power on time of use and the hot water tank on a controlled load circuit.
Hot water on controlled load is already heating in the cheap window, so the savings on a time of use tariff come from the appliances on your general circuits: the car charger, the pool pump, the dishwasher, the washing machine and the dryer.
Switching tariffs and need the meter or wiring to match?
DM Electrical installs and changes over smart meters as a Level 2 ASP, adds controlled load and dedicated circuits, and fits EV chargers with scheduling built in. Based in Brookvale, serving the Northern Beaches and wider Sydney.
What is a demand tariff?
A demand tariff adds a monthly charge based on the single highest half hour of power you drew during the peak window, measured in kilowatts, on top of a lower usage rate. It is standard for larger businesses and now appears on some residential plans. If the oven, the air conditioner and the dryer all run together at 6pm one evening, that half hour sets the charge for the whole month, so the tariff suits homes that can keep their evening draw low and steady.
Do I need a smart meter for a time of use tariff?
Yes. An old accumulation meter only records a running total, so it cannot tell the retailer when the power was used. A smart meter, also called a Type 4 interval meter, records usage in 30 minute intervals and sends the data to the retailer remotely. In NSW, installing or changing a meter is network metering work, so it must be done by a Level 2 Accredited Service Provider. Your retailer arranges the meter. Our smart metering page explains what a changeover involves, and the Level 2 ASP page covers the accreditation.
Retailers often move a customer to a time of use plan after a new meter goes in. Under the national retail rules a retailer needs your explicit consent before changing the type of tariff you are on, so if you were moved without agreeing and would rather have a flat rate, ask them to put you back.
How do you get the most out of a time of use tariff?
Automate the big loads so they run off-peak without you thinking about it. A timer or a delay start setting does the shifting for you.
- Schedule EV charging. Set the charger or the car to start once the off-peak window opens. Our home EV charger guide covers the options.
- Put the pool pump on a timer. Run the filter in the off-peak or shoulder hours.
- Use delay start. Most dishwashers, washing machines and dryers have one. Set them to finish before 7am instead of running at 7pm.
- Move hot water to controlled load. If your electric tank is on a general circuit, rewiring it to a controlled load circuit gives it a cheap tariff permanently.
- Pre-cool before 3pm. Run the air conditioner in the shoulder period so the house is already comfortable when the peak starts, then ease it back.
Check the result after two or three bills. If your retailer's app shows more than about half your usage still landing in the peak, a single rate plan is probably the better fit.
Frequently asked questions
Can I go back to a flat rate from a time of use tariff?
Usually, yes. Most retailers offer a single rate plan to customers with a smart meter. Ask your retailer, and if they moved you to time of use without your agreement after a meter upgrade, say so.
Do weekends count as peak on a time of use tariff?
On Ausgrid's residential windows, no. Weekends and public holidays are shoulder from 7am to 10pm and off-peak overnight. Some retailers set their own windows, so check your plan fact sheet.
Does solar work with a time of use tariff?
Yes. Solar reduces what you buy in the daytime shoulder window, and a battery can cover the evening peak. Without a battery, the peak starts as solar output drops, so the tariff rewards shifting load into daylight hours.
Who installs the smart meter for a time of use tariff in NSW?
A Level 2 Accredited Service Provider. Your retailer arranges the changeover, and the installer must hold Level 2 ASP accreditation with the network, such as Ausgrid or Endeavour Energy.
The bottom line
A time of use tariff charges more for power in the weekday evening peak and less overnight, and it only saves money if you can move your biggest loads out of that peak. EV charging, pool pumps and laundry on timers are where the savings are. If you need a smart meter changed over, a controlled load circuit added or an EV charger installed to make the tariff work, get in touch and we can sort the metering and the wiring in one visit.