Electricity Tariffs Explained: Peak vs. Off-Peak Hours⚡Australia

What are Energy Australia's Peak and Off-Peak Pricing?

When you arrive home from work on a typical Australian summers’ day (let’s say 5pm), you start to use power in the middle of a peak period where electricity will be most expensive to use.

Updated 19/1/2026

Retailers like Energy Australia offer time-of-use tariffs/plans that enable variable energy prices which can benefit or sting you based on your consumption habits.

For example, Energy Australia's off-peak prices are 29.61c/kWh, shoulder prices are 37.33c/kWh, and peak periods come in at 70.65c/kWh. Energy Australia winter rates go from 1 June - 31 August, and their summer rates from 1 November to 31 March. (Results based on the postcode 2322. Prices may vary.)

This means that if you ran the same electrical load at both 11pm, and 5pm, the 5pm usage would cost you more than double for the exact same amount of electricity consumed. This is why it's important to use your higher-consuming appliances during off-peak or shoulder to really help save on your energy bill.

1. What is a Time-of-Use Tariff? (Peak & Off-Peak Pricing Explained)

A time-of-use electricity tariff is designed to charge different rates depending on the time of day. Peak energy hours are charged the most, shoulder is charged at a medium rate, and off-peak is when electricity is cheapest.

Who are time-of-use tariffs for? Most households run on a time-of-use energy tariff which can be flexible for homes that run appliances overnight, charge electric vehicles, or operate high-consuming appliances like pool pumps or hot water systems. (Did you know that most hot water systems are on a timer that take advantage of off-peak electricity overnight?)

This kind of electricity plan is suited to those who have flexibility in when they use electricity, incentivising off-peak consumption. For residents who consume most of their energy during peak periods, it can become very expensive to run basic appliances for cooking, cooling, or entertainment.

Since 2024, Ausgrid combined both shoulder periods with off-peak periods, making it easier to differentiate on vs. off-peak prices for consumers. Based on AGL's standing offer, peak period prices come in at around $0.65c/kWh, and off-peak electricity prices around $0.30c/kWh.

2. What is a Flat/Single Rate Tariff?

Unlike a time-of-use tariff which is variable depending on the hour of the day, a flat rate tariff remains consistent throughout the day and night. There are no peak and off-peak periods which means that your electricity costs remain consistent whether the electricity is during a peak or an off-peak period. Depending on the retailer, flat rate electricity tariff prices range from 30-40c/kWh.

Who are single rate tariffs suited for? A single rate tariff is suited for homes that use most of their electricity during peak periods and for those who prefer consistent and predictable electricity bills. Flat rate plans are a great choice for workers who return home at dinner time and consume their energy right in the middle of peak electricity hours.

Is a Flat rate or Time-of-use tariff better? Whilst flat rate tariffs are simple, they are less cost-effective compared to taking advantage of off-peak electricity pricing. If your household can take advantage of off-peak electricity prices, a flat rate tariff may prevent savings.

3. What is a Demand Tariff?

Demand tariffs, also known as demand charges on electricity bills, incentivise customers to use less energy in peak periods. 

How are demand charges calculated? Demand charges look at your maximum electricity consumption during peak hours. Measuring in 15 or 30-minute block intervals each day during a month, the block with the highest consumption will be your highest energy consumption.

Rather than solely focusing on the amount of energy being used, a demand tariff also takes into account the amount of power being drawn. Running multiple high-consuming appliances like air-conditioning, pool pumps, and ovens at the same time can cause spikes which increase the demand charge portion of your electricity bill.

4. What are Controlled Tariffs?

A controlled load is a tariff for specific stand-alone appliances like electric hot water heaters, pool and irrigation pumps, and underfloor heating. They're designed to power systems that don't need instant consumption, only powered during periods where electricity is generally cheaper than off-peak rates.

Controlled loads are managed remotely by electricity providers where appliances are powered usually overnight or during low-demand periods.

Because they are on their own meter, it's easier to track individual usage which can be billed at a separate rate than your general household consumption.

Ausgrid's controlled tariff periods include:

• between 10.00pm and 6.45am AEST/AEDT (early April to early October)
• between 9.00pm and 4.15am AEST/AEDT (October) 
• between 9.00pm and 5.45am AEST/AEDT (November to early April) Daytime 
• between 10.00am and 4.45pm AEST/AEDT (early April to early October)  
• between 9.00am and 3.45pm AEST/AEDT (October) 
• between 9.00am and 1.30pm AEST/AEDT (November to early April)

What is a Solar Tariff?

One of the most well-known rebates across Australia is the solar feed-in-tariff, which enables homeowners to export their excess solar power for credit on their electricity bill.

In recent years, the value per kWh of exported solar has been reduced as more and more households continue to rely on solar production.

Depending on which energy provider you're with, they offer various packages and incentives which helps homeowners access higher rewards, mostly ranging from 3-5c/kWh exported.

Whilst the solar export reward used to be much higher, there is still a great opportunity for large energy consumers to greatly offset their daytime electricity usage with the solar they generate.

Households are no longer focused on exporting, but consuming the power they produce. This is also maximised with battery storage where homeowners can continue consuming stored solar long into the night.