Tariff issues

A time of use tariff will have different rates depending on the time of day. This is usually called peak, off-peak and shoulder.

• Peak: usually in the evenings from Monday to Friday. Electricity will cost the most during this time.
• Off-peak: usually overnight and on the weekend. Electricity will be the cheapest during this time.
• Shoulder: usually occurs between peak and off-peak times. Electricity will cost a bit less than peak but will be more expensive than off-peak at this time.

You will have to check with each provider to confirm the exact times they define as peak, off-peak and shoulder.

A time of use tariff could be a good choice for you if you use most of your electricity on weekends or late at night.

A single rate tariff charges the same rate for electricity no matter what time of day it is. Typically, this tariff rate is cheaper than the peak rate on a time of use tariff. A single rate tariff may also be named flat, standard or anytime rate.

This could be the right tariff for you if you use most of your electricity during evenings on Monday to Friday.

A demand tariff will charge you a demand fee on top of the usual usage and supply fees. This tariff measures your ‘demand’ of electricity at a point in time rather than your use over time. It’s important to keep in mind different providers have different ways of applying demand charges. For example, some will charge you for your highest peak demand and some may charge you based on an average of your peak demand. That peak is then multiplied by your provider's daily demand charge rate over the duration of the bill to calculate the total cost of the tariff. The demand rate can also change during different seasons.

You could save money by using your appliances outside of the peak demand period, or alternating use of appliances instead of using them all at the same time.

How best to save money is dependent on your provider and how they charge demand tariffs.

This tariff is specific to certain items such as pool filtration systems or electric hot water systems. Often the appliance will have its own meter and your provider will charge a rate just for the electricity that item uses. Controlled load rates are generally lower cost than other rates as they are usually only used on appliances that run over night in off peak times.

If your home has a solar system that connects to the grid you may be able to benefit from a solar feed in tariff. This tariff allows you to earn back on your electricity bill if your system generates excess electricity that is not used in your home and fed back into the grid.