1 May 2026, 4 mins
A Time-of-Use tariff is an electricity pricing structure where the rate you pay changes depending on the time of day.
Instead of paying one flat rate for every kilowatt-hour (kWh), your electricity usage is usually charged across different periods:
In many cases, peak periods happen in the evening, when more households are using power. Off-peak periods are often overnight, and shoulder periods usually sit in between. But the exact times depend on the plan and where you live. Energy Made Easy notes that typical peak periods are often in the evening on weekdays, with off-peak often overnight and on weekends, and shoulder in between.
Electricity is not always priced the same way across the day.
For many households, the rate you pay can depend on when you use power, not just how much you use. That is what a Time-of-Use tariff does.
Instead of charging one flat rate all day, a Time-of-Use tariff splits the day into different pricing periods. That means your electricity may cost more at busy times and less when demand is lower. In Australia, these plans commonly use peak, shoulder and off-peak periods, although the exact time windows vary depending on your retailer, plan and network area.
Understanding how this works can make it easier to read your bill, compare plans and spot simple opportunities to shift some energy use to lower-cost times.
Understanding your bill
A Time-of-Use tariff changes what shapes your bill.
On a flat tariff, you pay the same usage rate no matter when you use electricity. On a Time-of-Use tariff, timing matters too. If more of your usage happens during peak periods, your usage charges may be higher. If you can shift some usage into shoulder or off-peak times, you may be able to reduce your costs. Energy Made Easy specifically says these plans can create opportunities to save by moving usage to off-peak periods where possible.
That does not mean a Time-of-Use tariff is automatically better or worse. It simply means the plan is more directly influenced to your household habits.
If you know when your home uses the most power, it becomes easier to work out whether this type of tariff suits you.
With a Time-of-Use tariff, saving on your electricity bill is not always only about using less electricity. It can also be about using electricity at different times.
For example, depending on your routine, you may be able to:
This is what makes Time-of-Use tariffs useful for many households. They give you a clearer signal about when electricity is in higher demand and when it may cost less.
For some people, that creates an opportunity to make small changes without completely changing day-to-day life.
Shoulder periods sit between peak and off-peak times.
They can be helpful if you cannot shift all your energy use into off-peak hours but still want to avoid the highest-priced periods. If your plan includes shoulder pricing, it can offer a practical middle ground for things like laundry, dishwashing or other flexible appliance use. Energy Made Easy describes shoulder as a period priced below peak and above off-peak within a Time-of-Use structure.
For households trying to be more flexible with their electricity use, understanding shoulder periods can make a real difference over time.
In many cases, yes.
To access a Time-of-Use plan, you may need a meter that records your electricity use at different times of day, such as a smart meter or interval meter. Energy Made Easy says customers may need this type of meter for a Time-of-Use tariff, and the AER explains that smart meters digitally measure electricity use throughout the day.
If you have a basic meter, in most cases you cannot benefit from variable rates and boosted feed in tariffs, as the time you are exporting at is not recorded by this type of meter.
If you are unsure what type of meter your home has, it is worth checking your bill or asking your retailer.
Check your meter
If your home has a battery, a Time-of-Use tariff can be advantageous for your smart energy home set-up
Depending on your system and plan, you may be able to:
In simple terms, that can help you make more strategic use of the energy you store at home.
That said, the results depend on your tariff structure, battery settings and household usage pattern. So, it is best to think of a battery as something that may create more flexibility, rather than assuming it will lower costs in every case.
You do not need to completely overhaul your routine to get more value from a Time-of-Use tariff. Small changes can add up.
A few practical ways to start:
Not always.
The best tariff depends on how and when your household uses electricity. A Time-of-Use tariff may suit homes with flexible routines, or households that can move some usage away from peak periods. But if most of your electricity use happens during peak times, the benefits may be more limited.
That is why it helps to look at your usage pattern before choosing a plan. When you use power can matter just as much as how much you use.
Learn about load shifting
A Time-of-Use tariff means electricity is priced differently across the day, usually across peak, shoulder and off-peak periods. That means timing can play a bigger role in your bill.
For some households, that creates an opportunity to shift a few habits and make better use of lower-cost periods. And if you have flexible usage or a home battery, there may be more ways to make your energy work harder at home.
At Flow Power, we believe better energy decisions start with better understanding.
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