When are electric rates cheaper? Electricity rates guide

Why electric rates vary by time of day

Electricity is harder to supply when everyone wants it at once. Hot afternoons and early evenings push demand up as air conditioners run and households cook dinner. On those peaks, networks and generators work harder, and some retail plans pass that cost through with higher peak rates. Overnight, demand drops and wholesale prices are usually lower. Plans with time‑of‑use pricing reflect these patterns by offering off‑peak discounts when the grid is quieter.

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In most Australian states, retailers offer multiple tariff types. A flat anytime rate is simple, the unit price is the same 24 hours a day. A time‑of‑use plan has different prices for peak, shoulder, and off‑peak windows. Some homes also have a separate controlled load tariff for hot water or slab heating that runs overnight at a cheaper rate. If you have a smart meter, your retailer can bill you accurately for different times of day.

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For small businesses, the pattern is similar, but trading hours matter. Daytime loads like refrigeration, cooking, and HVAC can land inside peak windows. Some small business tariffs include demand charges, a monthly fee based on your highest half‑hour of usage. Managing when equipment starts and stops can cut both energy and demand costs.

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Understanding peak, shoulder, and off‑peak rates

While exact times vary by state, distributor, and plan, most time‑of‑use tariffs follow a similar logic:

• Peak: Higher prices during busy periods, typically weekday afternoons and evenings. Common examples are late afternoon to mid‑evening on weekdays.

• Shoulder: Mid‑priced periods when demand is moderate, often mornings and late evenings outside the peak window.

• Off‑peak: Cheapest hours when demand is lowest, typically overnight and some weekend periods.

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Examples to illustrate the idea:

• A typical household weekday might see peak pricing in the late afternoon and evening, shoulder in the morning and later at night, and off‑peak overnight.

• Many weekend hours are off‑peak or shoulder on residential plans, although this is not universal. Always check your plan’s tariff table.

• Small business example: a suburban café on a time‑of‑use plan runs fridges 24/7, shifts prep tasks like dishwashers and ice makers into off‑peak late evening, and staggers morning start up of ovens and HVAC to avoid one high half‑hour.

Controlled load is separate from the main tariff and is designed for specific circuits. For instance, an electric storage hot water system may heat at night on a cheaper controlled load rate, even if your main tariff is peak and shoulder.

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What time of day is the cheapest for electricity?

On most time‑of‑use plans, the cheapest hours are overnight off‑peak. If you are asking, “are electricity rates cheaper at night”, the answer is often yes on TOU plans, but not always. It depends on your distributor and retailer. Some anytime tariffs have a single price all day, which means there is no cheaper time.

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If you have a smart meter and a TOU plan (TOU means time‑of‑use pricing, with different rates at peak, shoulder and off‑peak times), you can usually find your exact off‑peak hours on your bill or in your online account. Use those hours for dishwasher cycles, laundry, and EV charging where safe and practical. For homes on an anytime plan, there is no off‑peak discount, so focus on total usage rather than timing.

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Small business customers asking “are business electricity rates cheaper than domestic” should know it varies. Small business plans sometimes have a higher daily supply charge and similar or slightly lower usage rates than residential plans, but overall costs depend on usage profile and whether demand charges apply. The cheapest time of day will still be the off‑peak window on a TOU plan for many businesses.

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Benefits of using electricity during off‑peak hours

Shifting usage to off‑peak can unlock multiple gains:

• Lower unit prices: Off‑peak kWh are cheaper on most TOU plans, so running appliances then cuts cost.

• Better use of controlled load: Heating water or running storage systems overnight can reduce daytime bills.

• Demand management for business: Staggering high‑load equipment to avoid a single half‑hour spike can lower monthly demand charges where they apply.

• Grid friendly: Using power when the system is quieter helps reduce stress on local networks, which can support reliability over time.

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Household examples:

• Run the dishwasher after 10 pm if your plan lists that time as off‑peak.

• Delay the washing machine to overnight, then hang clothes in the morning.

• Charge an EV late at night with a timer so it finishes before breakfast.

• If you have a pool, set the pump to operate in off‑peak windows where safe and permitted by your plan.

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Small business example:

• A salon shifts laundry to off‑peak, turns styling tools off between clients, and starts HVAC 15 minutes before opening instead of an hour to reduce peak usage.

• A retail shop schedules signage and display lighting for off‑peak where plans allow, sets HVAC to 24–25°C in summer and 18–20°C in winter, and keeps doors closed during extreme heat or cold to reduce load.

• A small office enables sleep settings on PCs and printers, staggers kettle, dishwasher and HVAC start‑up in the morning, and runs any large file backups or software updates overnight to avoid peak windows.

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Comparing weekday vs weekend electricity rates

Many residential TOU plans price weekend hours as shoulder or off‑peak for longer stretches, which is why people ask “are electricity rates cheaper on weekends”. Often they are, but not on every plan. Some tariffs still have peak periods on weekends, especially in summer. The only reliable source is your retailer’s tariff table for your meter.

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A simple approach is to schedule flexible tasks for weekend mornings and evenings, which are commonly off‑peak on residential plans. For businesses that trade on weekends, shifting prep work or batch tasks to early morning or late evening can reduce exposure to weekday peaks. If your plan prices weekends the same as weekdays, you will save more by reducing total consumption or changing appliance settings rather than chasing timing.

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What time of year are energy rates the lowest?

Bills tend to be lowest in mild shoulder seasons such as autumn and spring, when households and businesses use less heating and cooling. Wholesale electricity prices also tend to be calmer in those periods, although weather and market conditions can change that pattern. On time‑of‑use plans, the time windows usually stay the same across the year, but your total usage rises in summer heat waves and winter cold snaps.

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Retail pricing itself does not change by month like airline tickets. Your plan’s tariff rates are set in your agreement and reviewed at renewal or when a retailer updates its prices. The cheapest time of year for your bill is usually when your household or business uses less, not when the cents per kWh change. That is why managing heating and cooling settings often delivers the biggest savings.

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How to monitor and adjust your electricity usage

To get cheaper electricity rates in practice, you need two things: the right plan for your usage and small changes to when and how you run appliances.

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Monitor

• Log in to your retailer portal to view smart meter data. Look for daily and half‑hour charts and mark your peaks.

• Keep a simple diary for one week: note when the air conditioner, dryer, dishwasher, and other high‑load appliances run.

• Check your bill for tariff type. If it is anytime, a TOU plan may help. If it is TOU, make sure you know your exact off‑peak hours.

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Adjust

• Move flexible loads to off‑peak: dishwashers, washing machines, dryers, EV charging, pool pumps, glasswashers, ice makers, coffee machine cleaning cycles, tool battery chargers.

• Nudge air conditioning setpoints: around 24–25°C in summer cooling and 18–20°C in winter heating. Each degree closer to ambient can cut HVAC energy by about 5 to 10 percent.

• Seal and shade: close blinds in the afternoon sun, use draught stoppers in winter, and close doors to rooms you are not using.

• Switch to LEDs and switch off standby where possible.

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Choose the right plan

• If most of your usage is after 9 pm or before 7 am, ask your retailer about TOU plans that reward off‑peak use.

• If your household is home all day and usage is steady, an anytime flat rate may be simpler and, for you, cheaper overall.

• For small businesses with short, sharp peaks, consider whether a demand tariff applies. Staggering start‑up of HVAC, dishwashers, and cooking equipment can help avoid a single high half‑hour.

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FAQs

How can I find out my electricity provider’s peak and off‑peak hours?

Check your most recent bill or your online account for a tariff table. If it is not shown, call your retailer and ask for the peak, shoulder, and off‑peak times for your meter and plan. Times differ by state, distributor, and plan type.

Are electricity rates cheaper on weekends compared to weekdays?

Often yes for residential time‑of‑use plans, as many weekend hours are shoulder or off‑peak. Some plans still have weekend peak windows, especially in summer, so confirm the hours on your tariff table.

What are off‑peak hours for electricity?

Off‑peak hours are the cheapest time blocks on a time‑of‑use plan, commonly overnight and sometimes on weekends. Exact hours vary by plan and network.

Can using electricity at night lower my bill?

If you are on a time‑of‑use plan with cheaper off‑peak rates, running appliances at night can lower your bill. If you are on an anytime flat rate, timing will not change the unit price, so focus on overall efficiency instead.

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How Zembl can help

Short on time?  Send your latest bill and address, and a Zembl Energy Expert will confirm your current plan and tariff type, explain your peak, shoulder and off‑peak hours, and compare competitive offers for small businesses based on your usage. Residential customers can use our digital comparison journey to explore options. If you choose an option, we coordinate the change and keep you informed.

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_{This guide is general information only. Check your bill and tariff table for the exact times and rates that apply to your meter and plan.}