Tariffs

Time-of-use: price changes by time of day

On a time-of-use (TOU) plan, electricity costs more during the evening peak and less overnight and on weekends. If you can shift when you use power, this tariff rewards you for it.

How it works

A time-of-use tariff splits the day into two or three pricing bands:

Peak

The most expensive band. Usually weekday afternoons into the evening (e.g. 3pm–9pm). This is when everyone gets home, turns on the AC, cooks dinner, and watches TV — grid demand is highest.

Shoulder

A middle rate on some (not all) plans. Typically covers mid-morning to early afternoon on weekdays. Not every retailer uses a shoulder band — some just have peak and off-peak.

Off-peak

The cheapest band. Overnight hours, early morning, and often all weekend. This is when grid demand is lowest and wholesale prices are cheapest.

What the day looks like

OFF-PEAKSHOULDERPEAKOFF-PEAK12am7am2pm9pm12am

Illustrative weekday schedule. Exact times vary by state, distributor, and retailer.

Worked example: same 15 kWh, different cost

Imagine a household using 15 kWh in a day. On a flat rate vs. TOU plan, the daily cost can be quite different depending on when those kWh are used:

ScenarioUsage splitDaily cost
Flat rate (28c/kWh)15 kWh × 28c$4.20
TOU — mostly peak10 kWh peak (35c) + 5 kWh off-peak (18c)$4.40
TOU — mostly off-peak5 kWh peak (35c) + 10 kWh off-peak (18c)$3.55

The savings are real

Shifting just 5 kWh from peak to off-peak in this example saves 85c/day — that’s over $300 a year. Running your EV charger, dishwasher, or washing machine overnight or during solar hours is the easiest way to make this shift.

Typical peak windows by state

StateTypical peak window
NSW2pm–8pm or 4pm–8pm weekdays
QLD (SEQ)4pm–9pm weekdays
VIC3pm–9pm every day
SA6pm–10pm (summer peak)
TAS7am–10am and 4pm–9pm weekdays

Always check your actual plan documents — times vary by distributor and retailer even within the same state.

Who TOU tariffs suit best

  • Solar households — you’re already using free solar during the day, reducing your peak-priced imports.
  • EV owners — charge overnight at off-peak rates instead of evening peak.
  • Flexible schedules — if you can run laundry, dishwashers, and pool pumps outside peak hours.
  • Battery owners — charge from solar midday, discharge during peak to avoid buying expensive grid power.

If you can’t shift much usage and tend to use most power in the evening, consider a flat rate instead — TOU only saves money if you actually shift loads.