Peak vs Off Peak Electricity Explained
Electricity is not always priced the same throughout the day.
Many Australian households are on what's known as a "time of use" tariff, where electricity prices change depending on when power is used. Understanding peak, shoulder, and off peak pricing can make a significant difference to your electricity bill.
What Is Peak Electricity?
Peak electricity refers to the times of day when demand on the electricity grid is highest. During these periods, electricity is usually more expensive.
Peak times commonly occur:
- •in the morning
- •late afternoon
- •early evening
especially when many households are:
- •cooking
- •using heating or air conditioning
- •charging devices
- •running appliances simultaneously
What Is Off Peak Electricity?
Off peak electricity is usually the cheapest electricity period. This often occurs overnight or during lower demand periods.
Some households use off peak tariffs for:
- •hot water systems
- •EV charging
- •overnight appliance usage
The exact times vary depending on:
- •your provider
- •your state
- •your distributor
- •your meter type
What Is Shoulder Pricing?
Shoulder pricing sits between peak and off peak rates. It generally applies during moderate demand periods where electricity is neither at its cheapest nor most expensive.
Why Time of Use Tariffs Matter
Two households using the same amount of electricity can receive very different bills depending on when they use electricity.
- •running appliances during peak periods may increase costs significantly
- •shifting usage to off peak times may reduce bills
Many households do not realise they are on a tariff structure that no longer suits their lifestyle.
Common Appliances That Impact Peak Usage
High usage during peak times often comes from:
- •air conditioning
- •electric heaters
- •ovens and cooktops
- •dryers
- •dishwashers
- •EV charging
How Bill Scout Helps
Bill Scout analyses your electricity bill to identify:
- •your tariff structure
- •how your pricing works
- •whether your current setup may suit your usage habits
This can help households better understand whether another electricity plan may better match how they actually use power.