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If your energy bills are making you gasp in horror, the solution could be as simple as changing the time of day you are using your household appliances.
That is, if you’re on a ‘time of use of tariff’, which means the amount you pay for energy varies depending on the time of day you’re using it.
Sound confusing? It can be but if you know what your electricity usage is and the times that the different rates apply to you, you can cut your bills in two ways. Either by using expert timing and using your appliances, heating, cooling and lights only at certain times of day, or by shopping around for a better energy deal.
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What is time of use electricity charging?
If you’re on a time of use plan, you’ll be charged different rates for using electricity at different times of day.
At times when both the cost of generating electricity and demand for electricity from the grid are low, such as the middle of the night, the cost to use electricity is also low. However, at times when both the cost of generation and demand for electricity from the grid are high, like during the afternoon of a hot summer day, the rate of electricity is higher.
What are the current time of use periods?
Peak period electricity is the most expensive when demand is high, usually during the afternoon and early evening on weekdays. Off-peak electricity is the cheapest when demand is lowest and applies overnight and across weekends. Shoulder applies between Peak and Off-Peak times, at this time the cost is lower than peak.
Time of use rates may vary by season and on weekdays versus weekends and holidays, how much they vary depends on your plan and retailer.
By understanding these time periods you can make decisions to shift when you use power to hours when it’s cheaper.
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Do I pay peak and off-peak electricity rates?
You should only pay peak and off-peak electricity rates if you have signed up to a ‘time of use’ or ‘flexible pricing’ tariff.
And, you should only be on a time of use tariff if you have discussed this option with your energy retailer and believe it makes sense financially because you generally use more power during the day or late at night over any other time of day.
If you’re on a single rate tariff, you won’t be charged different rates at different times of day so you can use your washing machine or dishwasher whenever you like.
If you’re not sure which tariff you’re on, check your bill or contact your energy retailer.
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FAQs: Electricity bills
Can I claim electricity on my tax return?
If you work from home, you may be able to claim some electricity costs on your tax return under running costs. If you worked from home this financial year, you can still claim a rate of $0.80c per hour for all running expenses, including electricity. Visit the Australian Taxation Office (ATO) website for more info.
If my energy comes from the same power plant as my neighbour, how come I’m paying more than them?
Although your energy may come from the same place as your neighbour’s does, they might have a plan with a different retailer that offers cheaper energy. To get a better energy deal, use a comparison service to see how much your next bill would cost under a different plan.
How can I make sure I’m getting the best deal on my energy bill?
To make sure you’re getting the best deal on your energy bill, shop around regularly. Most residential plans don’t have cancellation fees, so you can switch to another retailer if you see a better plan.
How hard is it to switch energy providers?
It’s easy. All your retailer has to do is take over your account – and you won’t lose power during the process. To get the ball rolling, use a comparison site and find a better deal.
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