Time of use vs single rate tariff

The majority of energy plans come with a single rate: electricity costs the same no matter when you use it. But some energy plans let you choose a time of use tariff, which has rates that vary throughout the day.

So what are time of use tariffs, and more importantly, can they save you money compared to a single rate?

The short version: Which tariff is best?

• A single rate tariff charges one flat price for electricity, 24/7. It's simple, predictable, and great if your energy use is all over the place.
• A time of use (ToU) tariff has different prices throughout the day: expensive during high-demand 'peak' hours, and cheaper during low-demand 'off-peak' hours.
• The verdict? For many households, a single rate is easier and often works out cheaper. But a ToU tariff can be a secret weapon for savings if you can shift your big energy habits (like charging an electric car or running the dryer) to the cheap off-peak times.

What times are peak periods?

Peak periods vary from state to state, but are usually during afternoons and evenings, when there is a high demand on the network (for example, 3pm–9pm in parts of New South Wales at certain times of year). "Shoulder" rates apply between peak and off-peak periods in most states, except Victoria.

Example: Winter in the Ausgrid network (weekdays)

What are the main types of electricity tariffs?

Before we dive deep into the main event, let's get our head around all the options. Your bill is priced using one of these tariff structures.

What is a single rate tariff?

A single rate tariff is the vanilla ice cream of energy plans – simple, classic, and you always know what you're going to get. You pay one fixed price (e.g., 30 cents) for every kilowatt-hour (kWh) of electricity you use, whether it's 3pm or 3am.

• Who is it best for? Families who are home during the day and evening, people who work from home, or anyone who doesn't want to think about when they use power.

What is a time of use (ToU) tariff?

A time of use tariff turns your electricity bill into a strategic game. It splits the day into different blocks, each with a different price tag.

• Peak: The most expensive time, usually on weekday afternoons and evenings when everyone gets home and turns everything on (think 2pm – 8pm).
• Off-peak: The cheapest time, typically late at night and on weekends (e.g., 10pm – 7am).
• Shoulder: A rate somewhere in the middle, bridging the gap between peak and off-peak.

The exact times are set by your local electricity distributor (the company that manages the poles and wires), so they vary depending on where you live. It pays to check their website to know your specific windows.

• Who is it best for? People who can easily use most of their power at night or on weekends. Think night-shift workers, EV owners, or anyone who loves the hum of a dishwasher at midnight.

What is a controlled load tariff?

A controlled load is a special, discounted tariff just for a single, hard-wired appliance like an electric hot water system or a pool pump. It's often on a separate meter and can only draw power during off-peak hours.

• Who is it best for? Anyone with a large, eligible electric appliance. It's a great set-and-forget way to save money on a big energy guzzler.

What is a demand tariff?

This one's a bit of a newcomer for residential homes but is becoming more common. A demand tariff includes an extra charge based on your intensity of use. It measures your single biggest spike of energy consumption during peak hours in a billing period and charges you for it. The idea is to discourage you from running the oven, air con, and washing machine all at the same time.

• Who is it best for? Households with very consistent energy use that can avoid creating big power spikes in the evening.

Single rate vs Time of use: The pros and cons

Okay, let's put them in the ring. Here's how the two main tariff types stack up.

Single Rate Tariff

Time of Use Tariff

How much can you actually save?

This is the million-dollar question. In the past, the savings on ToU tariffs were often minimal for the effort required. However, with the latest Default Market Offer prices set by the regulator in May 2026, the gap between peak and off-peak rates is widening.

For a typical household in NSW, QLD, or SA, a ToU plan could now save you money if you can shift at least 40% of your total usage to off-peak hours.

• A realistic saving: For a household that successfully moves laundry, dishwasher use, and other tasks to off-peak times, the saving could be around an estimated quarterly saving on ToU vs single rate of $50-$70 per quarter.
• The risk: If you don't change your habits, a ToU tariff could cost you an extra. An estimated quarterly loss on ToU vs single rate for a typical household could be $80-$100 per quarter.

What about solar, batteries and EVs?

This is where the decision gets really interesting. Modern tech completely changes the maths.

What's the best tariff if I have solar panels?

If you have solar panels, a time of use tariff can be a double-edged sword.

• The dream scenario: You use your own free solar power all day, then a home battery kicks in to power your home through the expensive evening peak. You barely buy any grid power, and your bills are tiny.
• The trap: You use your free solar power all day, but when the sun goes down, you start pulling from the grid right in the middle of the expensive peak period. This can be more costly than a single rate tariff.

Some energy retailers now offer 'solar sponge' tariffs with a super cheap rate in the middle of the day (e.g., 10am-3pm) to encourage you to use grid power when solar generation is high. This can be great for running pool pumps or charging a battery.

I'm getting an EV – which tariff should I choose?

For electric vehicle owners, a time of use tariff is almost always the clear winner.

Charging an EV uses a lot of power, but it's the perfect task to schedule for the middle of the night. On a ToU tariff, you can fully charge your car for a fraction of the cost of a single rate plan. Over a year, the savings from off-peak charging can easily add up to hundreds of dollars, making a ToU tariff a no-brainer.

The bottom line: How to choose the right tariff for you

So, single rate or time of use? It all comes down to your lifestyle and your tech.

Stick with a single rate tariff if:

• You're home most weekday afternoons and evenings.
• You have a family with unpredictable power needs (teenagers, am I right?).
• You value simplicity and don't want to plan your appliance use.
• You don't have an EV or home battery.

Make the switch to a time of use tariff if:

• You have an EV you can charge overnight.
• You have a home battery that can store solar power for evening use.
• You're out of the house on weekday evenings, or you're a night owl.
• You're willing to change your habits (e.g., run the dishwasher before bed) to chase savings.

The best move? Check your latest power bill to see your usage patterns, then use that information to compare energy plans and find the one that fits you best.

FAQs

• Do I need a smart meter to get a time of use tariff?

  Yes. Time of use tariffs rely on an interval (smart) meter that records how much electricity you use in each time block. If you still have an old accumulation meter, it will need to be upgraded before your retailer can move you onto a time of use plan. Many homes already have one, particularly in Victoria where smart meters are compulsory, or if solar has been installed.

• Can I switch between a single rate and time of use tariff?

  Yes, in most cases. You can ask your retailer to change your tariff type, subject to your meter being time of use-capable. Some retailers apply a small fee or a minimum period between changes, so it's worth checking with your provider before switching.

• Do time of use peak rates apply on weekends and public holidays?

  Usually not. Peak rates typically apply on weekdays only, with weekends and public holidays billed at shoulder or off-peak rates in most networks. Exact rules vary by state and distributor, so check your local network's tariff schedule to be sure.

• Is a time of use tariff mandatory?

  No. Time of use is an optional tariff structure offered alongside single rate plans. You can generally request whichever tariff your retailer supports at your address, though some plans built specifically for solar or EV owners may default to time of use.

• Which is generally cheaper: time of use or single rate?

  It depends on your usage pattern. For a typical household using power throughout the day, a single rate plan is often cheaper or similar in cost. For households that can genuinely shift the bulk of their usage to off-peak hours, such as EV owners charging overnight, a time of use tariff usually works out cheaper.

• Do peak periods change with the seasons?

  Yes, in some states. A few networks apply different summer and winter peak windows to reflect higher demand from air conditioning in summer or heating in winter. Check your local distributor's website for the exact hours that apply to your address at the current time of year.

• How do I find out which tariff I'm currently on?

  Your tariff type is usually listed on your electricity bill under the pricing or rates section. If it's not clear, contact your retailer directly — they can confirm your current tariff and let you know if switching is an option.

• Can businesses use time of use tariffs?

  Yes. Time of use tariffs are common on small business electricity plans too, and can offer similar savings for businesses that operate mostly outside peak hours, such as those open evenings or weekends, or running automated processes overnight.

• Does switching to time of use affect my daily supply charge?

  No. The daily supply charge is a separate fixed fee for being connected to the grid, and it stays the same regardless of tariff type. Only your usage (per kWh) rates change between single rate and time of use plans.

• What happens if I use a lot of power during peak times on a time of use plan?

  You'll pay the higher peak rate for that usage, which can make your bill more expensive than if you'd stayed on a single rate plan. This is the main risk of time of use tariffs: if your habits don't shift, you could end up paying more, not less.

Learn more about energy

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Written by

Sam Baran

Writer

Sam Baran is a writer for Finder, covering topics across the tech, telco and utilities sectors. They enjoy decrypting technical jargon and helping people compare complex products easily. When they aren't writing, you'll find Sam's head buried in a book or working on their latest short story. Sam has a Bachelor of Advanced Science from the University of Sydney. See full bio