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What is a Controlled Load Tariff? Your Complete Guide to Savings

Learn how controlled load tariffs  may help reduce your electricity bills. Compare energy plans and discover if controlled load suits your home. 

What Is A Controlled Load Tariff? Your Complete Guide To Savings

Published on 15/07/2025

By Pallav Verma

Electricity Comparison

Are you paying more than you should for electricity? For many Australian households, understanding controlled load tariffs  may help reduce your energy bills, depending on your usage and eligibility. This specialised electricity tariff offers lower rates for high-energy appliances like hot water systems and pool pumps. 

This guide explains everything you need to know about controlled load tariffs, helping you make informed decisions when you compare energy plans and potentially reduce your electricity costs. 

Note: The information provided in this article is factual and general in nature. It does not constitute personal advice and does not take into account your specific energy usage or financial situation. For personalised advice, please consult your energy provider or a licensed energy advisor. Rates, eligibility, and plan features may vary by provider, location, and distributor policies. This site compares plans from a panel of participating providers and may not cover all options available in the market. 

Understanding controlled load tariffs 

A controlled load tariff is a separate electricity rate that applies to specific high-energy appliances in your home. Unlike your standard electricity usage, these appliances are metered separately and charged at different rates—typically lower than regular household electricity. 

The Australian Energy Market Commission defines controlled load as electricity supplied to appliances that don't require continuous power. This system allows electricity networks to manage demand more efficiently by shifting energy usage to off-peak periods. 

How controlled load works 

Your controlled load appliances operate during predetermined hours set by your electricity distributor. During these times, your appliances automatically switch on to heat water, warm floors, or run pool pumps. Outside these hours, they remain off, helping balance electricity demand across the network. 

The system requires a separate meter or circuit for each controlled load appliance. This dedicated metering ensures accurate billing and prevents interference with your regular household electricity supply. 

Common controlled load appliances 

Hot water systems 

Electric hot water systems represent the most common controlled load application. These systems heat water overnight when electricity demand is lower, storing hot water for use throughout the day. 

Pool pumps and heating 

Pool pumps often qualify for controlled load tariffs, particularly when they don't need to run continuously. Pool heating systems also benefit from this arrangement, operating during off-peak hours to maintain water temperature. 

Underfloor and slab heating 

Electric underfloor heating and slab heating systems work well with controlled load tariffs. These systems store heat in concrete slabs or floor materials, releasing warmth gradually throughout the day. 

Heat pumps 

Heat pump systems for water heating or space heating can utilise controlled load tariffs, operating during designated hours to provide efficient heating solutions. 

Note: Controlled load compatibility may vary based on distributor policies and installation setup. 

Types of controlled load tariffs 

Controlled Load 1 

Controlled Load 1 typically operates overnight, usually between 10pm and 7am. This tariff suits appliances that only need to operate during off-peak hours, such as basic hot water systems. 

According to Essential Energy's network pricing, Controlled Load 1 provides supply for 5 to 9 hours on weekdays, with extended hours on weekends. The exact timing may vary based on network requirements. 

Controlled Load 2 

Controlled Load 2 offers more flexibility, operating up to 19 hours daily except during peak periods. This tariff excludes typical peak hours (7am-9am and 5pm-8pm on weekdays), making it suitable for appliances requiring more frequent operation. 

This option works well for solar hot water systems, heat pumps, and appliances that benefit from daytime operation when solar energy is abundant. 

Operating hours by state 

New South Wales 

In NSW, Ausgrid has updated controlled load operating windows from July 2024. Controlled Load 1 now includes both overnight and daytime windows: 

Overnight hours: 

  • 10pm to 6:45am (April to October) 
  • 9pm to 4:15am (October) 
  • 9pm to 5:45am (November to April) 

Daytime hours: 

  • 10am to 4:45pm (April to October) 
  • 9am to 3:45pm (October) 
  • 9am to 1:30pm (November to April) 

Other states 

Operating hours vary by state and distributor. Your local electricity distributor sets these hours based on network requirements and demand patterns. Check with your distributor for specific timing in your area. 

Note: Please refer to your local distributor’s website for the most up-to-date hours. 

Benefits of controlled load tariffs 

Lower electricity costs 

Controlled load tariffs typically offer rates significantly lower than standard electricity prices. This cost difference may result in lower costs, depending on your usage and applicable rates. 

Network efficiency 

By shifting electricity usage to off-peak periods, controlled load tariffs help balance network demand. This system reduces strain on electricity infrastructure and can delay the need for costly network upgrades. 

Environmental benefits 

Off-peak electricity often comes from more efficient power generation sources. Additionally, daytime controlled load windows can utilise excess solar energy, supporting renewable energy integration. 

Reliable hot water supply 

For hot water systems, controlled load ensures consistent heating during off-peak hours, providing reliable hot water supply throughout the day. 

How to get controlled load 

Contact your retailer 

To access controlled load tariffs, contact your electricity retailer. They can assess your eligibility and arrange necessary equipment installation. Different retailers may offer varying controlled load rates, so it's worth comparing options. 

Meter installation requirements 

You'll need a separate meter or dedicated circuit for controlled load appliances. Your retailer coordinates this installation through your local distributor. The process typically involves: 

  1. Application assessment 
  2. Technical evaluation 
  3. Equipment installation 
  4. Connection and testing 

Costs and considerations 

While controlled load can provide savings, consider installation costs and ongoing charges. Some retailers include daily supply charges for controlled load circuits, which you should factor into your cost calculations. 

Note: Costs vary depending on the distributor and installation needs. 

Identifying controlled load on your bill 

Bill structure 

Controlled load appears as a separate line item on your electricity bill, typically on the second page. Look for terms like "Controlled Load," "Dedicated Circuit Usage," or specific tariff codes. 

Usage patterns 

Your bill shows controlled load usage separately from general household consumption. This separation helps you understand how much energy your controlled load appliances consume. 

No usage charges 

If you see controlled load listed with no charges, the system has been switched off. Contact your retailer to understand why and discuss reactivation options. 

Controlled load vs time-of-use tariffs 

Key differences 

While both tariffs involve timing, controlled load applies to specific appliances with dedicated circuits. Time-of-use tariffs apply to all household electricity consumption at different rates throughout the day. 

Suitability factors 

Controlled load works best for homes with compatible appliances that can operate during restricted hours. Time-of-use tariffs suit households that can shift general electricity usage to off-peak periods. 

Cost comparison 

The optimal choice depends on your household's energy usage patterns and appliance types. When you compare energy plans, consider both options to determine which provides better value. 

Eligibility and limitations 

Connection requirements 

Controlled load requires low voltage connections and premises consuming less than 160 MWh annually. Your property must have a primary metering point alongside the controlled load circuit. 

Appliance compatibility 

Not all appliances suit controlled load arrangements. Appliances must operate effectively during restricted hours without compromising functionality or safety. 

Geographic availability 

Controlled load availability varies by distributor and location. Some areas may have limited options or different operating parameters. 

Tips for maximising controlled load benefits 

Appliance sizing 

Ensure your controlled load appliances are appropriately sized for your household's needs. Oversized systems waste energy, while undersized systems may not provide adequate service. 

Timing awareness 

Understand your controlled load operating hours and plan accordingly. For hot water systems, this means ensuring adequate hot water storage for peak usage periods. 

Regular maintenance 

Well-maintained appliances operate more efficiently during controlled load periods. Regular servicing ensures optimal performance and longevity. 

Monitor usage 

Track your controlled load usage on electricity bills to understand consumption patterns and identify potential savings opportunities. 

Making the switch: what to expect 

Assessment process 

Your retailer will assess your property's suitability for controlled load, considering electrical infrastructure, appliance compatibility, and potential savings. 

Installation timeline 

Controlled load installation typically takes 2-4 weeks from application to connection, depending on equipment availability and network requirements. 

Transition period 

Allow time for your household to adjust to new operating patterns. Hot water systems may take a few days to establish optimal heating cycles. 

Take control of your energy costs 

Understanding controlled load tariffs empowers you to make informed decisions about your electricity usage and costs. These specialised tariffs can provide significant savings for suitable households while supporting network efficiency and environmental goals. 

Whether you're considering controlled load for the first time or reviewing existing arrangements, comparing your options ensures you get the ideal value for your energy needs. 

Ready to explore controlled load options and find the ideal energy plan for your home? Compare energy plans at electricityprovider.com.au to discover potential savings and take control of your electricity costs today. 

Note: Our platform compares a selection of providers from our panel and may not include all available options in the market. Information is general in nature and does not consider your specific circumstances.  

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