What Are Peak Electricity Prices? Save on Your Energy Bill

Electricity prices are a frequent expense most Australian homeowners face but understanding when you're consuming energy could make a huge difference to your bill. Peak electricity pricing is a concept that many Australians aren't fully aware of, yet it plays a crucial role in determining how much you pay for power. 

By the end of this guide, you’ll know exactly what peak electricity prices are, when they occur, and how they affect your electricity bill. You'll also discover practical ways to reduce your power costs by choosing the ideal energy plan and using energy during the most cost-effective times. 

Peak vs Off-Peak Electricity Prices Explained 

Electricity pricing can vary significantly depending on the time of day. If you're on a time-of-use tariff, you'll pay different rates for electricity during peak, off-peak, and sometimes shoulder times: 

• Peak Times (Expensive): Typically between 4 pm–9 pm on weekdays when Australians are cooking, doing laundry, watching TV, and cranking up the heating or aircon. 
• Off-Peak Times (Cheapest): Generally late at night or early in the morning, like between 10 pm–7 am, when the demand on the electricity grid is lower. 
• Shoulder Times (Moderately Priced): Fall between peak and off-peak, such as mid-morning or mid-afternoon, and tend to have slightly lower rates than peak pricing. 

For example, running your dishwasher at 6 pm (peak time) may cost almost double compared to running it at midnight (off-peak time). According to Energy Made Easy, time-of-use pricing exists to encourage Australians to shift their electricity usage outside of peak demand periods. This helps reduce strain on the energy grid and can save you money. 

Why Do Peak Prices Exist? 

Peak pricing exists due to high demand. When thousands of households power their washing machines, ovens, heaters, or air-conditioners simultaneously, electricity networks experience strain. To manage this demand and optimise grid performance, retailers charge higher rates during these periods. 

At the same time, off-peak pricing discourages overloading the grid by encouraging usage during quieter periods, such as late at night or on weekends. 

How Do Peak Electricity Prices Affect Your Energy Bill? 

If you're on a flat-rate tariff, the time of day you use electricity won’t matter; you'll pay a single, consistent rate per kilowatt-hour (kWh). But if you're on a time-of-use tariff, your electricity usage habits will directly impact your bill. 

Higher Costs During Evening Hours 

On a time-of-use plan, using power-hungry appliances during peak times means you'll pay premium rates. Depending on your provider, peak rates can exceed 40 cents/kWh, which is significantly higher than off-peak rates (as low as 10–25 cents/kWh). For families who are home during the evening, this could lead to much larger bills. 

For example: 

• Doing two loads of laundry during peak hours may cost around $1.20 each. 
• The same two loads done at off-peak rates could cost less than $0.50 each. 

Seasonal Differences 

Some energy providers also adjust peak times based on the season. For instance: 

• Summer (1 Nov–31 Mar): Peak times may start earlier due to air conditioners running during hot afternoons. 
• Winter (1 Jun–31 Aug): Demand surges later in the evening when Australians use more heating. 

Knowing your provider's time-of-use schedule can help you plan your household chores to keep your bill down. 

Comparing Time-of-Use Tariffs vs Flat-Rate Tariffs 

Here’s a quick breakdown of the two main types of energy tariffs: 

Time-of-Use Tariffs 

• Variable pricing (peak, shoulder, off-peak). 

Advantages: 

• Potential savings if you can shift energy use to off-peak times. 
• Encourages energy-efficient habits. 

Ideal For: 

• Households with flexibility to run major appliances during off-peak times. 

Flat-Rate Tariffs (Single Rate) 

• Same price per kWh, no matter the time of day. 

Advantages: 

• Simplified billing with predictable costs. 
• No time restrictions on energy use. 

Ideal For: 

• Families or individuals who can't avoid using electricity during peak hours. 

Not sure which is ideal for you? Use an online service to compare energy providers to find the ideal plan for your lifestyle and energy habits. 

How to Reduce the Impact of Peak Pricing on Your Bill 

Reducing energy costs requires a mix of smarter energy usage and finding the ideal plan for your needs. Here are some actionable tips: 

1. Shift Energy Usage to Off-Peak Times 

Use appliances like washing machines, dishwashers, and dryers at night or early in the morning. Many modern appliances include delay-start functions, making it easier to run loads during off-peak hours. 

2. Install a Smart Meter 

Smart meters allow you to track your energy consumption in real-time. Knowing exactly how much energy you're using during peak, shoulder, and off-peak periods can help you adjust your habits. 

3. Switch to Energy-Efficient Appliances 

Consider upgrading older appliances to energy-efficient models with high star ratings. For example, newer air conditioners and refrigerators can significantly reduce energy consumption. 

4. Consider Solar Power 

Adding a solar system with battery storage to your home allows you to generate electricity during the day and store it to use during the evening peak periods. This can significantly lower your dependence on grid electricity. 

5. Choose the Ideal Plan 

Find a plan that suits your household's energy habits by using comparison tools like Energy Made Easy or Electricity Provider. Make use of keywords like "compare energy plans" or "gas elec comparison" to search for deals. 

6. Look for Incentives 

Some providers offer demand-response programs, rewarding customers who reduce their energy use during peak periods with credits or discounts. 

Tools That Help You Manage Your Electricity Costs 

Some comparison platforms (such as Econnex and Electricity Provider) operate on a commercial basis and may only show plans from participating providers. For a government-run, independent platform, refer to Energy Made Easy. Here are a few worth mentioning: 

• Energy Made Easy (energymadeeasy.gov.au): A government-operated website that allows you to compare energy providers and plans in your area. 
• Comparative Energy Platforms (e.g., Econnex or Electricity Provider): Private third-party tools for comparing rates across providers, including plans for gas and electricity bundles. 

FAQs About Peak Electricity Pricing 

How Do I Know If I'm on a Time-of-Use Tariff? 

Check your most recent energy bill or contact your electricity provider to confirm whether you're on a time-of-use or flat-rate tariff. 

When Are Peak Electricity Hours in Australia? 

Peak hours typically occur from 4 pm to 9 pm weekdays but may vary slightly depending on your provider and location. 

Does Peak Pricing Apply All Year Round? 

Yes, but the exact hours may change seasonally. For example, in summer, peak periods often occur earlier in the day to reflect increased air-conditioning use. 

Can I Save Money by Switching Providers? 

Potentially. Many customers can reduce their bills by switching to a plan that better suits their usage habits, but savings depend on individual consumption patterns, provider offers, and location. 

Are Gas and Electric Bills Affected By Peak Pricing? 

Electricity bills primarily use time-of-use pricing. However, gas costs are generally based on flat rates and seasonal demand rather than time-specific tariffs. 

Take Charge of Your Energy Costs 

Managing your energy usage and understanding peak electricity prices can make a significant impact on your household budget. Whether it’s adjusting your habits, upgrading your appliances, or finding a better tariff, there are plenty of ways to save. 

Interested in exploring plans tailored to your energy needs? Use a compare gas and electric prices tool to ensure you're never overpaying. Start saving smarter today!