Tariffs

With time of use, different usage rates are charged for the electricity you use at different times: usually including off peak, shoulder and peak. For some customers, time of use rates can have a demand charge applied as well (find out more about demand charges in the FAQ below). You may not always have all of these components to make up your time of use tariff structure.

• Off peak – charged when the electricity network has low usage, such as overnight or during times with high solar export.
• Shoulder – usage rates that are usually a bit cheaper than peak rates and are available in most states. Shoulder times can be a period during the day on weekdays or weekends. These times usually differ between states and distribution areas.
• Peak - charged when the electricity network has high usage, such as in the evening.

Tip You can get the most out of your time of use tariff structure if you use electricity outside of peak times as much possible. If you have a smart meter, time of use can be set as the default tariff.

What’s a demand tariff?

A demand tariff – or a demand charge – is a charge added by your area’s electricity distributor, and passed on by energy retailers to help promote lower energy usage during peak usage periods. The charge is based on the maximum electricity you use over a specific period of time – usually 30 minutes – which is considered your ‘maximum’ electricity usage. Peak times vary depending on where you live and what time of year it is.

Because demand tariffs apply to these ‘peak’ intervals, customers who use more electricity at peak times will be charged more based on their maximum usage over this period.

Demand tariffs can only apply if you have a smart meter.

I’m a residential customer. Do demand tariffs apply to me? 

Demand tariffs may apply to you if you have a smart meter, depending on your electricity distributor (the company that owns the poles and wires in your area). If you are on a demand tariff, you will see a demand charge on your electricity bill under the ‘understanding your bill’ section.

Are demand tariffs suitable for me?  

To make the most of demand tariffs, you need to be able to manage your electricity usage. If you can minimise how much you use during peak times, you’ll be able to save money on your bill. If it’s too difficult to keep an eye on how much electricity you’re using at demand times, you might end up paying more.

The easiest way to minimise how much energy you use is to stagger your use of appliances throughout the day. Instead of running, say, your washing machine and dishwasher at the same time, stagger them so that you’re using only one at a time. Check out our handy guide to lowering demand charges on our blog.

By understanding how demand tariffs work, you can take control of your energy bill and contribute to a more stable and efficient energy grid. If you don’t think being on a demand tariff plan is for you, you can check out our plans or get in touch with us.

For more information on demand tariffs, visit our demand tariffs page.

The rate stays the same whatever time of day or year you use your electricity. A single rate tariff is usually lower than peak, but higher than off peak and shoulder rates. 

Tip
A single rate, also known as a peak only rate, might suit you if you’re home most of the time and use large appliances such as washing machines and dishwashers during weekdays.

Off peak refers to lower electricity prices during certain times, generally when electricity network usage is low. Off peak times usually are at night or weekends and vary depending on your area and meter type.

More ways to save electricity with off peak rates

Controlled load electricity refers to electricity being used by a stand-alone item, like an electric hot water service, electric slab heating or an irrigation pump. Controlled loads are recorded separately and can be billed at an off-peak rate.

Find out more about controlled load.
 

Any unused electricity that your home’s solar power system sends back to the grid, is credited to your bill after you’ve been charged for your electricity. The credit amount depends on what state you’re in and how big your solar power system is. 

More information about feed-in tariff rates in your state

Two-way charging is a two-way solar tariff for residential and business solar customers. It’s designed to: 

• encourage customer to use the electricity they generate rather than exporting it to the grid, when too much solar is sent back to the grid and/or,
• encourage customers to export excess energy generated at times when it’s needed the most. 

Find out more about solar two-way charging.
 

A seasonal rate is charged between peak season (winter) and low season (non-winter). It can be charged as a single rate within these seasons, or as a block rate (a usage rate calculated on how much gas you use). This type of gas rate is only available in Victoria.

With a non-seasonal rate tariff, the rate stays the same, no matter what time of year you use gas.

Tip
In some places, we can’t supply gas. This might be because gas lines aren’t available to homes in your area, there’s no gas meter on your property or there’s an area restriction (e.g. only certain energy retailers can offer gas).