With 4Free, eligible electricity used between 11am and 3pm local time is credited back – up to 8kWh per hour.
Here is how the 4Free credit, the Price Efficiency Adjustment and excess usage work together on your electricity bill.
The PEA, or Price Efficiency Adjustment, is the term we use for your monthly rate adjustment. It’s determined based on the underlying wholesale cost of power when you use it. Your PEA lowers when you use power at cheaper times – like in the middle of day when solar is abundant. The PEA increases if you use power at expensive times – usually during the evening peak.
This mechanism rewards you for being able to move your power consumption to cheaper parts of the day.
For example, on your bill it might appear like this:
| Rate | Usage | Amount | |
|---|---|---|---|
| Base Rate | 28c/kWh | 500 kWh | $140.00 |
| Price Efficiency Adjustment | -5c/kWh | 500 kWh | -$25.00 |
Base usage rate plus or minus the 4Free-period PEA equals the 4Free credit rate.
Example: 41c/kWh – 8c/kWh = 33c/kWh
In this example, the eligible electricity would receive a credit of 33 cents for each kWh.
The PEA used to calculate the 4Free credit is determined predominantly by the wholesale and network costs during 4 hour free window. For this reason it can be different from the average PEA shown for your full billing period. This separate calculation is only used to work out the correct value of your 4Free credit. It is not an additional charge.
Calculating your free power in this way, means that using power in the free window can still contribute to lowering your whole of bill PEA for the entire month.
Each hour has its own 8kWh allowance. Unused allowance does not carry into another hour.
For example, if you use 5kWh between 11am and midday, the unused 3kWh cannot be added to the following hour.
Example of eligible and excess usage:
| 4Free hour | Electricity used | Eligible for credit | Excess usage |
|---|---|---|---|
| 11am–12pm | 6kWh | 6kWh | 0kWh |
| 12pm–1pm | 10kWh | 8kWh | 2kWh |
| 1pm–2pm | 9kWh | 8kWh | 1kWh |
| 2pm–3pm | 4kWh | 4kWh | 0kWh |
| Total | 29kWh | 26kWh | 3kWh |
Eligible usage in this example: 6 + 8 + 8 + 4 = 26kWh credited.
Excess usage in this example: 2 + 1 = 3kWh not credited. This usage remains part of the normal usage charges on the bill.
This simplified example uses:
These figures are illustrative only and are not current plan rates.
| Bill line item | Example calculation | What it means | Example amount |
|---|---|---|---|
| Electricity usage | 500kWh × 30c/kWh | The normal base usage charge for all electricity used during the billing period. | $150.00 |
| Price Efficiency Adjustment | 500kWh × -2c/kWh | An example negative bill-period PEA, reducing the usage charge because of when electricity was used. | -$10.00 |
| Daily supply charge | 30 days × $1.10/day | The fixed daily supply charge. It is not covered by the 4Free usage credit. | $33.00 |
| 4Free Credit | 26 eligible kWh × 22c/kWh | The effective rate credited for eligible electricity used during the 4Free Period. | -$5.72 |
| Excess 4Free-period usage | 3kWh above the hourly limits | Normally included in the usage and PEA lines above, but it does not receive a 4Free credit. | No additional credit |
Example subtotal: $167.28
This is before any other applicable charges, credits, concessions or adjustments.
The 4Free credit is designed to offset the effective usage cost of eligible electricity.
Differences between the 4Free credit rate and the base rate can arise due to the fact that your PEA for the 4Free Period is different to your PEA for the billing period.
For example, if your base rate is 30c/kWh and the PEA calculated for your eligible 4Free is negative 8c/kWh:
30c/kWh – 8c/kWh = 22c/kWh
Your 4Free credit would therefore be 22 cents for each eligible kWh.
The important bit: A different cents-per-kWh value does not mean your 4Free credit is missing. It means the credit has used the effective rate that applied to your eligible electricity usage during the 4Free Period.
Between 11am and 3pm every day your electricity is free — up to 8kWh in each of those four hours. That’s the easy bit.
Outside that free window, here’s what shapes your rate. If you use more energy when the wholesale price is cheap (typically when renewable energy generation is high), we’ll pass on those money-saving benefits to you in the form of a rate reduction to your base rate. But if you used more energy when wholesale prices are high (like fossil-fuelled peak times – typically in the evenings), this could lead to a rate increase to your base rate for that month. We call this the Price Efficiency Adjustment.
So the move is simple: run the big jobs — hot water, washing, the pool pump, charging an EV or battery — when the wholesale price is cheap (typically in the middle of the day). You soak up your free hours, and the use that spills outside them lands in the cheaper part of the day too, which helps your rate.
Worth knowing: all your use, including the free 11am–3pm window, still counts toward your Price Efficiency Adjustment for the month.
Is everything on my bill free between 11am and 3pm?
Yes, subject to the 8kWh per hour limit. Usage above the limit, electricity used outside the 4Free Period and other applicable plan charges are not covered by the credit.
Can I carry unused allowance into the next hour?
No. Each hour has its own 8kWh allowance. If you use 5kWh in one hour, the unused 3kWh cannot be added to the allowance for the next hour.
Does my 4Free usage still count towards my PEA?
Yes. All your electricity usage, including usage during the 4Free Period, contributes to the PEA for your full billing period. The separate 4Free credit then offsets the effective usage cost of eligible electricity.
Where will I see the credit?
Your bill will show your normal electricity usage charges and the PEA calculated across the billing period. A separate line item called 4Free Credit will then be applied for your eligible electricity use between 11am and 3pm.
Examples in this document have been simplified to explain how the calculation works. Actual rates, PEA values, eligible usage and bill totals will vary by customer, billing period, location and the applicable energy price fact sheet.