Just like the peak travel times you run into on your morning commute, your energy usage will also incur peak and off-peak times where the strain on the nation's grid is higher than average. For this reason, a few energy providers offer off-peak incentives for their customers to lessen the pressure put on our grid. This will usually be indicated on your bill, depending on your retailer.
If you're looking to cut costs on your power bill or want to understand why your account keeps coming up with 'peak usage' terms, our guide will explain everything you need to know about peak and off-peak incentives.
What is On and Off-Peak Electricity?
Off-peak electricity rates are the times of the day when you can use electricity at a reduced cost rate. These times fall on quiet periods throughout the day when national usage is at a lower level than 6 pm when most people come home from work and do all of their cleaning and cooking.
Energy providers will use a ‘time-of-use tariff’ to charge different rates based on the time of day your energy is consumed. You'll pay the same price continually throughout the day if you have a single rate tariff. These tariffs are also referred to as 'peak usage' on your bills, even if it's not necessarily in peak times. If you have a time-of-use tariff, you'll be paying a different rate depending on the time you're using your electricity.
The goal behind off-peak times and incentives is to persuade customers to use energy during these times to remove additional strain felt during peak hours. You can save a substantial amount of energy and money by choosing to use certain appliances, like your washing machines, at off-peak times.
To take advantage of these off-peak benefits, you must have a compatible smart meter and sign up for the applicable tariff. If you want to benefit from off-peak energy usage but don't have the proper meter, you can request that your energy provider updates your meter so you can be eligible for off-peak use.
How Do I Know If I Am On Peak And Off-Peak Electricity Rates?
You'll only pay peak and off-peak electricity rates if you've signed up for a time-of-use or flexible pricing tariff and have discussed it with your energy provider. This will mean that you need a smart meter installed at your home, as this can measure and record accurate usage details from your home and is generally recorded every 20 minutes offering an accurate reflection on your invoice.
Peak vs Off-Peak Electricity Times
In general terms, peak energy usage times are generally between 3 and 9 pm on weekdays. This is when most workers get home and start using power. However, these times may change in different states and depending on seasonality.
Off-peak times are generally experienced throughout the late evening and early morning on weekdays; this is usually recorded between 10 pm and 7 am. The middle of the day and weekends are typically identified as 'shoulder' periods, which sit between peak and off-peak times.
As the off-peak and peak times will differ from state to state and amongst energy providers, we've listed a general guide from leading energy providers such as AGL, Origin and Energy Australia. Information from other energy providers can be found on their specific websites.
Energy Australia
VIC (Citipower)
Peak: 3 pm to 9 pm every day
Shoulder: Not applicable
Off-peak: 9 pm to 12 am and 12 am to 3 pm every day
NSW customers with Ausgrid will experience a furthered program with peak and off-peak times offered at different times in summer and winter.
Summer (1 Nov to 31 Mar):
Peak: 2 pm to 8 pm on weekdays
Shoulder: 7 am to 2 pm and 8 pm to 10 pm on weekdays, 7 am to 10 pm at weekends
Off-peak: 10 pm to 7 am every day
Winter (1 Jun to 31 Aug):
Peak: 5 pm to 9 pm on weekdays
Shoulder: 7 am to 5 pm and 9 pm to 10 pm on weekdays, 7 am to 10 pm on weekends
Off-peak: 10 pm to 7 am every day
Non-Summer/Non-Winter (1 Apr to 31 May & 1 Sep to 31 Oct):
Peak: Not applicable
Shoulder: 7 am to 10 pm every day
Off-peak: 10 pm to 7 am every day
SA (SA Power Networks)
Peak: 12 am to 1 am, 6 am to 10 am and 3 pm to 12 am on every day
Shoulder: 10 am to 3 pm every day
Off-peak: 1 am to 6 am every day.
AGL
VIC (Citipower)
Peak: 3 pm to 9 pm every day
Shoulder: Not applicable
Off-peak: 9 pm to 12 am and 12 am to 3 pm every day
NSW (Ausgrid)
Peak: 2 pm to 8 pm on weekdays
Shoulder: 7 am to 2 pm and 8 pm to 10 pm weekdays, 7 am to 10 pm weekends
Off-peak: 10 pm to 7 am every day
QLD (Energex)
Peak: 4 pm to 8 pm on weekdays
Shoulder: 7 am to 4 pm and 8 pm to 10 pm on weekdays, 7 am to 10 pm at weekends
Off-peak: 10 pm to 7 am every day
SA (SA Power Networks)
Peak: 12 am to 1 am, 6 am to 10 am and 3 pm to 12 am every day
Shoulder: 10 am to 3 pm every day
Off-peak: 1 am to 6 am every day
Origin
VIC (Citipower)
Peak: 3 pm to 9 pm every day
Shoulder: Not applicable
Off-peak: 12 am to 3 pm and 9 pm to 12 pm every day
NSW (Ausgrid)
1 Nov to 31 Mar:
Peak: 2 pm to 8 pm on weekdays
Shoulder: 7 am to 2 pm and 8 pm to 10 pm weekdays, 7 am to 10 pm weekends
Off-peak: 10 pm to 7 am every day
1 Apr-31 May & 1 Sep-31 Oct:
Peak: Not applicable
Shoulder: 7 am to 10 pm every day
Off-peak: 10 am to 7 am every day
1 Jun to 31 Aug:
Peak: 5 pm to 9 pm on weekdays
Shoulder: 7 am to 5 pm and 9 pm to 10 pm on weekdays, 7 am to 10 pm at weekends
Off-peak: 10 pm to 7 am every day
QLD (Energex)
Peak: 4 pm to 8 pm on weekdays
Shoulder: 7 am to 4 pm and 8 pm to 10 pm on weekdays, 7 am to 10 pm at weekends
Off-peak: 10 pm to 7 am every day
SA (SA Power Networks)
Peak: 6 am to 10 am, 3 pm to 1 am every day
Shoulder: 10 am to 3 pm
Off-peak: 1 am to 6 am
*Times and information Sourced from Canstar Blue current from September 2022, subject to change.
Peak vs Off-Peak Electricity Prices
While different incentives will change amongst energy providers, we've outlined a general guide to the average costs from Energy Australia, AGL and Origin. This is provided as nothing more than a guideline to present the difference that peak and off-peak electricity usage create.
AGL offers 55c/kWh for typical peak pricing and 16c/Kwh in off-peak pricing. While Origin offers 58c/kWh in peak times and 15c/kWh in off-peak hours. Finally, EnergyAustralia charges 57c/kWh at peak times and 19c/kWh during off-peak times.
*Source: Respective retailer websites, September 2022. Rates from plans on Ausgrid network in NSW.
Should You Use Peak and Off-Peak Electricity Times?
Whether you should take advantage of off-peak incentives is a matter that depends entirely on your home and routine. For example, if you're home at peak times and find it more convenient to use your power in the early evening, you may not benefit from time-of-use tariffs. But if you work from home or are in your house most of the day and use your power throughout these times, changing to an off-peak hour could prove very cost-effective for your home.
If you want to find the right plan and energy provider for your home or want to get the most from your providers, such as urgent electricity connections or improved rates, then start shopping around to find your match. Contact HOOD to find all the help you need to make the right electricity connection.
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