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How to best manage the daily changes in electricity rates?

April 26, 2022

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As if power bills aren't confusing and annoying as it is, you've just noticed that your electricity bill is pointing out odd things like off-peak tariff and variable charges.

As well, you're being charged different prices for different times of the day.

It's not the first or last time you'll see these strange points on your energy bill, especially when you're specifically honing in on gas and electricity deals.

Read on to find out more about these details.

Why does it look like my electricity rates change during the day?

No, you're not going crazy!

The fact is, electricity rates can change depending on the time of day and sometimes the season as well.

A lot of these changes depend on your energy provider, your rates and your meter.

A time of use meter, or tariff (fun fact: according to Energy Australia, a tariff is simply the price you’re charged for the energy you use), means your rates will change during the day.

In comparison, single-rate tariffs charge the same energy rates, 24/7.

Why?

Different tariffs explained

Let's start with your time of use tariffs.

As the name suggests, these tariffs are all about what time of what day you use your electricity and how much you will be charged depending on these details.

Why?

Our national energy grids reach peak demands at fairly similar hours every day.

Result: you'll pay more on a weeknight for running the dishwasher than you would if you ran it late at night on Saturday.

So, if you're on a time of use tariff and want to save yourself some cash, aim to firstly find out exactly when your energy grids' peak times are.

Then organise your home so that you don't run a load of laundry or other high demand electricity items at these times.

Instead, run them at off-peak times, such as during the night when the electricity grid network has very low usage.

Alternatively, some states and providers offer "shoulder" rates, which are basically those between peak and off-peak times such as between 7am-3pm on weekdays or 7am-10pm on weekends.

However, bear in mind that it can still be easy to miscalculate peak, off-peak and shoulder rates.

Now, let's talk about single rate tariffs.

Again as the name implies, these tariffs enjoy just one rate all year round, no questions or changes asked.

This rate is generally between the peak and off-peak and shoulder rates of a time of use tariff.

In other words, it ain't too shabby.

Energy Australia advises single rate tariffs are ideal for those working from home, or simply at home a lot, who can use high demand appliances during low demand weekday times.

How to best manage the daily changes in electricity rates
Keep warm this winter. Understand your energy bills.

How do I know what tariff I'm on?

Most Australian homes enjoy a single rate tariff with generally only those installed with smart meters offering the option of time of use tariffs.

If you're not sure which tariff you're on, it's best to check your bill or simply, contact your energy provider.

We’re here to help

Comparing electricity and gas plans and electricity rates is a drag, we know.

And if you're also trying to decide whether to turn on the dishwasher now or wait till an off-peak time, it's understandable if you'd prefer to turn on the TV and leave this decision to someone else.

Luckily, we at Moving Loop love hard work like comparing gas and electricity rates and deals, so we'll let you have the remote control and we'll start with the searching - and that includes solar solutions as well!

We'll have found you a new energy or internet provider before you can say, "I'm ready for bed" or just simply ensure you're enjoying the best deals and rates from a range of Australia's leading energy providers.

We also love taking care of all your removalist stresses from finding and co-ordinating the ideal removalist, to helping you pack up.

And we've saved the best news to last - all our services are free!

Visit Moving Loop to compare and switch. Start saving today!

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