Peak vs off-peak electricity: Decoding your power bill

Ever wondered why your power bill seems a biiit higher than you expected, even though you’re barely home all day? It might be thanks to peak electricity pricing at work. We’re breaking down what it actually means and how you can get more off-peak and more on-budget.

What is peak and off-peak electricity?

‘Peak’ hours are when electricity demand is high, and because more people are using power, the prices go up. Off-peak hours are when less people are using electricity and prices are lower – usually late at night when most of us would rather sleep than roast some veggies in a power-hungry oven.

When are peak and off-peak electricity times?

Electricity peak hours generally happen during the week in the evenings - around the time we start the post-work cooking, cleaning and binge-watching.

Off-peak hours kick in during quieter times when demand for electricity is low. Unless you’re a sleepwalker who does loads of laundry, you probably don’t use much power at 3am.

The in-between times are called ‘shoulder hours’, when electricity rates are somewhere in the middle.

What are the benefits of using electricity during off-peak hours?

Powering through your to-do list during the off-peak hours can help you save a bit of cash on your energy bill – as you’ll be running the same appliances while your electricity rate is lower. It also helps to spread out electricity usage and reduce the strain on the energy grid.

Who’s eligible for off-peak electricity rates?

It depends on your tariff type, electricity meter and where you live. You can always get in touch with us to chat about your options and we’ll help you make the switch. If you’re on a time-of-use tariff, you’ll probably already have off-peak electricity rates.