Time-of-Use Tariffs in Australia: How They Work and How to Save
Electricity bills are a concern for many Australian households, but the amount you pay depends not only on how much electricity you use, but also on when you use it. Under a time-of-use tariff, electricity rates vary throughout the day, with higher prices during peak periods and lower rates during off-peak hours. As smart meters become more widely used across Australia, more households may be placed on this type of pricing plan. This article explains how time-of-use tariffs work and provides practical ways to shift electricity use to lower-cost periods and reduce household energy bills.
How Time-of-Use Tariffs Work in Australia
A time-of-use tariff (TOU tariff) in Australia is an electricity pricing system where the price of electricity changes depending on the time you use it. Instead of paying a single fixed rate throughout the day, households are charged different rates during specific time periods.
TOU tariffs are generally divided into three categories:
Peak: The most expensive electricity periods, typically late afternoon and evening, when demand is highest
Shoulder: Periods of moderate demand with medium pricing
Off-peak: The cheapest periods, usually overnight or during low-demand hours
This pricing model is designed to reflect the actual cost of supplying electricity to the grid. When demand is high, electricity is more expensive to generate and distribute, resulting in higher prices. When demand is low, prices decrease accordingly. In Australia, TOU tariffs are commonly used alongside smart meters, which enable retailers to measure when electricity is used rather than just how much is consumed over time.
How Electricity Use Is Measured and Charged Under a TOU Tariff
Under a time-of-use tariff, electricity usage is measured and charged according to the time it is consumed. The process generally works as follows:
Smart meters record electricity use: A smart meter tracks how much electricity a household uses at regular intervals throughout the day, rather than only recording total consumption.
Usage data is matched with tariff periods: The electricity retailer compares the meter data with its predefined peak, shoulder and off-peak schedules.
Different rates apply at different times: The cost of electricity per kWh is usually highest during peak periods and lower during off-peak periods.
Confirm the details with your retailer: Peak, shoulder and off-peak periods can vary between electricity providers and plans. For example, customers looking for Origin Energy peak and off-peak times should check the tariff schedule in their bill, Energy Price Fact Sheet or online account.
Households can shift flexible energy use: Activities such as laundry, dishwashing, water heating, and EV charging may cost less when moved to off-peak periods.
Whether a time-of-use tariff lowers an electricity bill depends on how much energy a household can shift away from higher-priced periods.
Time-of-Use Tariff Periods Across Australia
Time-of-use tariff periods are not standardised across Australia. The peak, shoulder and off-peak times that apply to a household can vary depending on the electricity distribution network, retailer, location and selected energy plan. Some plans may also include only peak and off-peak rates rather than all three pricing periods. The table below provides examples of commonly used time-of-use periods in Australia. These times are for general reference only, as the exact schedule and rates applying to your home may differ.
Examples of Time-of-Use Periods in Australia
Location or Network | Peak Period | Shoulder or Solar Soak Period | Off-Peak Period | Important Details |
Ausgrid network, NSW | 3 pm–9 pm every day during June–August and November–March | Not used | All other times during peak seasons; all day during April, May, September and October | These are Ausgrid network tariff periods. Electricity retailers may apply different pricing windows. |
Victorian Default Offer, residential, from 1 July 2026 | 4 pm–9 pm every day | Solar soak: 11 am–4 pm every day | 9 pm–11 am every day | The 2026–27 residential VDO uses three pricing periods across Victoria’s five distribution zones. Market offers may differ. |
Energex network, South East Queensland | 4 pm–9 pm every day | 9 pm–11 am the following day | 11 am–4 pm every day | These are Energex network tariff periods. Retail plans may apply different pricing periods. |
ActewAGL ACT Standard residential TOU plan, to 30 June 2026 | 7 am–9 am and 5 pm–8 pm every day | 9 am–5 pm and 8 pm–10 pm every day | All other times | Times are based on AEST and do not shift with daylight saving. Prices and tariff structures may change from 1 July 2026. |
How to Check the TOU Rates for Your Home
To find the pricing periods and rates that apply to your household:
Check your electricity bill: Look for separate usage charges labelled peak, shoulder or off-peak.
Read your Energy Price Fact Sheet: This document lists the usage rates, daily supply charge and applicable tariff periods for your electricity plan.
Identify your electricity distributor: Your distribution network can affect which tariff structures and time periods are available in your area.
Confirm the details with your retailer: Ask whether the tariff periods change between weekdays, weekends or seasons.
Compare available electricity plans: Households in New South Wales, Queensland, South Australia, Tasmania and the ACT can use Energy Made Easy, while Victorian households can use Victorian Energy Compare.
Because TOU schedules vary, always check the details of your own plan before moving electricity use to a different time of day.
How to Save Money on a Time-of-Use Tariff
A TOU tariff affects your electricity bill because prices vary throughout the day. Saving money isn’t just about using less; it’s about when you use electricity.
1. Shift or Reduce Electricity Use During Peak Periods
Where possible, move flexible, energy-intensive activities to off-peak or lower-priced periods. Appliances such as washing machines, dishwashers, clothes dryers, pool pumps and EV chargers can often be scheduled using timer or delay-start functions. For electricity use that cannot be shifted completely, try to reduce consumption during peak periods. Avoid running several high-power appliances at the same time, adjust heating or cooling settings, and schedule pool equipment outside higher-priced hours where practical.
2. Use Battery Storage to Reduce Peak Costs
One of the most effective ways to reduce electricity costs under a Time of Use tariff is to use battery storage to avoid expensive peak-hour grid electricity. Instead of drawing power directly from the grid during high-price periods, households can store cheaper or self-generated energy and use it later when prices rise. For many homes, a flexible entry point is a portable power station. These systems allow you to store energy during off-peak hours or from solar generation, then power essential devices during peak pricing periods, helping reduce reliance on expensive grid electricity.
For large households with high energy demands, the EcoFlow DELTA Pro Ultra Whole-home Backup Battery provides a high-capacity solution designed for whole-home backup. With scalable storage and strong output capacity, it can supply household loads during peak tariff hours, significantly reducing exposure to high electricity prices. And by pairing the DELTA Pro Ultra with the EcoFlow Transfer Switch, you can seamlessly integrate it as a whole-home backup power source. Check out the installation tutorial for guidance.
Meanwhile, the EcoFlow DELTA 3 Ultra Plus Portable Power Station is ideal for households looking for a balance between portability and smart energy management. Its expandable capacity and intelligent output prioritisation allow key appliances, such as fridges and communication devices, to continue running efficiently while minimising costly peak-time grid consumption.
3. Use More Solar Energy During the Day
Households with rooftop solar can lower grid electricity costs by using more of their solar generation directly. Appliances such as washing machines, dishwashers and pool pumps can be operated during daylight hours, when the solar system is producing electricity. This reduces the amount of electricity purchased from the grid and may provide greater value than exporting excess solar energy, depending on the household’s usage rates and feed-in tariff.
4. Use Smart Controls and Automation
Smart plugs and compatible energy management systems can automate selected appliances according to a household’s tariff schedule. This reduces the need to monitor peak and off-peak periods manually and helps keep flexible loads outside higher-priced hours.
5. Understand and Monitor Your Usage Patterns
To fully benefit from a TOU tariff, it’s important to understand how and when you use electricity. Reviewing your energy bill can help identify peak usage habits and highlight opportunities for improvement.
Over time, adjusting routines based on your consumption patterns can lead to more consistent savings and better control over your electricity costs.
Conclusion
A time-of-use tariff in Australia encourages households to think more strategically about when electricity is used, not just how much is consumed. By understanding peak, shoulder and off-peak pricing, it becomes easier to identify opportunities to reduce unnecessary energy costs. Simple changes in daily routines, such as shifting appliance use to cheaper time periods, can already make a noticeable difference. For households looking to take savings further, solutions like solar integration, battery storage, or a portable power station can help reduce reliance on expensive peak-time electricity and improve overall energy efficiency.
FAQs
What runs up your electric bill the most?
The biggest contributors to a high electricity bill are usually heating and cooling systems, such as air conditioners and electric heaters. These appliances consume large amounts of energy, especially during extreme weather. Other major drivers include hot water systems, clothes dryers, and pool pumps, particularly when they are used during peak pricing hours under a time-of-use tariff. Reducing usage during high-demand periods can significantly lower overall costs.
Is a single rate or time-of-use tariff better?
Neither option is universally better; it depends on your household habits. A single rate tariff offers predictable pricing, making it easier for families who use electricity consistently throughout the day. A time-of-use tariff can be cheaper if you are able to shift usage to off-peak hours. Households with flexible schedules or solar and battery systems often benefit more from TOU pricing, while others may prefer the stability of a flat rate.
What is the cheapest time of day to use your electricity?
The cheapest time to use electricity is typically during off-peak hours, which are usually overnight (around 10 pm to 7 am) in most Australian states. Some regions also offer very low daytime rates when solar energy supply is high. These periods are when electricity demand is lowest, making them the most cost-effective times to run appliances like washing machines, dishwashers, and charging devices.