Time of Use Tariffs: Guide for UK Energy Customers
*Disclaimer: Before reading this guidance, please remember that tax matters can be highly individualized and complex. EcoFlow does not provide any assurances or guarantees concerning potential tax credits associated with our products. Any information in this guidance is solely for educational purposes and shall not be construed as legal advice. We recommend you rely on the expertise of tax professionals for accurate and personalized tax advice.
Time of use tariffs let UK households save money on electricity bills while supporting the country's net zero goals. By shifting energy use to off-peak hours, like running appliances or charging an EV late at night, you can benefit from lower rates.
This guide explains how time of use tariffs work, why they matter, and what to consider before switching, helping you decide whether a time of use tariff is the right choice for your home or business.
What Is a Time of Use Tariff?
The UK's electricity comes from different sources. Sometimes it\'s produced by renewables like wind and solar, and other times it comes from gas or nuclear power. When lots of people are using electricity at the same time, the grid often needs to rely more on gas power, which is more expensive.
A Time of Use (ToU) tariff in UK is a type of plan where prices vary depending on the time of day. This means you can benefit from cheaper rates at quieter times, often called off-peak electricity tariffs, and pay more during busy periods. By shifting energy use, such as running your washing machine overnight, you can save money and use electricity more efficiently.
How Do Time of Use Tariffs Work?
Time of use tariffs work by varying electricity prices according to when you use energy. Electricity prices are often organized by three time frames: peak hours, off-peak hours, and shoulder hours.
Peak hours: High-demand times such as weekday mornings and evenings when most households are using electricity.
Off-peak hours: Late at night or early in the morning, when demand is lowest, offering the cheapest electricity rates. This means electricity cheaper at night, making it an ideal time to run appliances or charge devices.
Shoulder hours: Periods between peak and off-peak with intermediate pricing.
To sign up, you'll need a smart meter, which records your energy use every 30 minutes and sends secure readings automatically to your supplier. This allows you to be billed accurately for peak, off-peak, and shoulder periods instead of estimated rates. By shifting your energy use to off-peak periods, you can save on electricity bills while helping reduce pressure on the UK's power grid.
Benefits of Time of Use Tariffs
Time of use tariffs offer several advantages for both consumers and the wider energy network. Here are the key benefits:
Potential Cost Savings
Shifting your electricity use to off-peak hours can significantly lower your electricity bill. For example, running your dishwasher or washing machine at night rather than in the evening can help you save money.
To save even more, you can store power in a portable power station during off-peak hours and then use the stored energy during peak times when rates are higher.
Support for Renewable Energy
Using electricity during off-peak times often means drawing on more renewable sources like wind or solar. TOU tariffs encourage more innovative energy use and make better use of clean energy when it is most available.
Devices like the EcoFlow DELTA Pro 3 Portable Power Station, with expandable storage from 4 to 12kWh, can store renewable energy generated or accessed during off-peak hours, letting you use clean power when demand is higher.
Reduced Grid Strain
By moving demand away from peak periods, TOU tariffs help reduce pressure on the power grid. This can lead to fewer blackouts, improved grid reliability, and a more sustainable energy system.
Besides that, you can use a backup power like the EcoFlow DELTA Pro Ultra Power Station to shift your power usage, which can further ease pressure on the grid during peak periods.
EcoFlow DELTA Pro Ultra Power Station
UK Major Types of Time of Use Tariffs
Type | What it means | Typical off-peak window(s) | Example Providers | Best for |
Traditional night tariffs (Economy 7/10) | Fixed cheap rate at night, higher rate in the day; Economy 10 splits cheaper hours into several blocks. | E7: e.g. midnight–7am. E10: e.g. 1–4pm, 8pm–12am, 4–7am. | E.ON Next Economy 7, Economy 10. | Homes with storage heaters, or households that can shift usage to night-time. |
EV overnight tariffs | Special low rates for charging electric vehicles overnight. | Usually 5–7 hour night windows. | Octopus Go / Intelligent Go (11:30pm–5:30am ~7p); EDF GoElectric 35 (12:30–5:30am 4.5p/kWh); E.ON Next Drive (12–6am at 7.5p/kWh vs 25.73p standard); OVO Charge Anytime (flat ~20p/kWh, EV charging at 7p/kWh); Ecotricity Fixed EV (12–5am); Good Energy EV Charge (competitive, 100% renewable). | EV owners wanting the lowest charging costs. |
Heat pump optimised tariffs | Designed for homes with heat pumps: cheap at night, higher rates at evening peaks, standard price at other times. | Off-peak 10pm–6am; Peak 4–7pm; standard at other hours. | E.ON Next Pumped (includes 100% renewable electricity). | Households with electric heat pumps and high heating demand. |
Dynamic / smart tariffs | Prices change every 30 minutes; off-peak can even be negative (you get paid to use power), but peaks can be very expensive. | No fixed windows – varies with market. | Octopus Agile (can drop below zero, can spike up to 100p/kWh). | Tech-savvy users who can monitor live prices and shift usage in real time. |
Broad off-peak block tariffs | Long blocks of cheaper hours, with expensive evening peak; some also include a “super off-peak.” | e.g. 9pm–4pm (British Gas). e.g. 5am–4pm & 7pm–2am off-peak, plus 2–5am super off-peak (E.ON Smart Saver). | British Gas PeakSave (9p/kWh, 9pm–4pm); E.ON Next Smart Saver (broad off-peak plus super off-peak 2–5am); Tomato Energy Green Saver (3 off-peak periods, 100% renewable). | People at home during the day, or able to run appliances overnight/early morning. |
Key takeaway:
Economy 7/10 are traditional, simple night tariffs.
EV tariffs give ultra-low overnight charging rates.
Heat pump tariffs balance night, peak, and standard hours.
Dynamic tariffs change half-hourly and reward flexibility.
Block tariffs give longer windows of cheap energy with clear peak hours.
What to Consider Before Switching to Time of Use Tariffs
Before switching to a time of use tariff, keep these key points in mind:
Smart meter requirement: You'll need a smart meter for accurate billing so you're only charged for the energy you use at the correct rate. Many homes already have one, but if not, installation is usually free.
Changing electricity prices: Electricity prices vary depending on when you use power. By looking at your household's average electricity usage, you can see whether shifting more of your consumption to off-peak hours will deliver meaningful savings.
Compatibility with home devices: Ensure your smart appliances or energy management systems are compatible with the tariff, allowing you to shift usage to off-peak periods easily.
Contract terms: Review contract duration, early termination fees, and potential penalties for switching tariffs or suppliers.
Billing and payment options: Check how frequently you'll be billed, available payment methods, and any discounts or notifications for tariff changes.
Conclusion
Time of use tariffs can be a smart choice for UK households and businesses looking to save on electricity costs and support a greener energy system. By shifting energy use to off-peak hours, such as running appliances at night or charging an EV when electricity is cheaper, you can lower your bills while helping reduce strain on the grid.
Whether you have an EV, a heat pump, or a solar battery, these tariffs can unlock additional savings and efficiency. Pairing a ToU tariff with an EcoFlow portable power station makes it even easier to store cheap off-peak energy and use it whenever you need.
FAQs
What is an example of a time of use tariff?
An example of a time of use (TOU) tariff is when electricity costs less during off-peak hours and more during peak demand. For instance, running your dishwasher at 10 PM could be cheaper than running it at 6 PM, since late at night is considered off-peak. In contrast, a standard tariff charges the same price per unit of electricity no matter when you use it.
What is the time of use tariff in Ireland?
In Ireland, a time of use (TOU) tariff is a billing system where electricity rates change depending on the time of day. For instance, you might pay one rate for electricity consumed during the day, a cheaper rate for energy used at night, and a higher rate during peak hours when demand on the grid is greatest.
Who benefits most from ToU tariffs?
Consumers who can shift their electricity usage to cheaper, off-peak hours tend to benefit the most from time of use (ToU) tariffs. For example, households with flexible routines, programmable appliances, or enabling technologies like smart thermostats and in-home displays can reduce bills by avoiding peak-time rates. Businesses that can move energy-intensive processes outside peak periods also see significant savings.
What's the difference between static and dynamic tariffs?
The key difference lies in how prices are set. Static time of use tariffs apply fixed peak and off-peak rates, which are set in advance and remain largely stable throughout the year, aside from seasonal changes. Dynamic time of use tariffs, on the other hand, follow real-time pricing. Rates fluctuate according to the wholesale electricity market, meaning costs can change significantly depending on supply and demand at any given moment.