Time-of-Use vs Flat Rate
Time-of-use (TOU) pricing charges different rates depending on when you use electricity. Peak = expensive. Off-peak = cheap. Flat rate charges the same price all day. Which one saves you more depends entirely on when you use power.
Typical TOU Rates: NSW (Ausgrid), 2026
| Period | Hours | Rate c/kWh | vs Flat Rate |
|---|---|---|---|
| Peak | 2pm-8pm weekdays | 45.0 | +60% |
| Shoulder | 7am-2pm, 8pm-10pm | 28.0 | Same |
| Off-Peak | 10pm-7am, weekends | 18.0 | -36% |
| Flat Rate | All day | 28.2 | Baseline |
Indicative rates. Exact times and rates vary by network and retailer. June 2026.
Who Should Be on TOU
If you run your dishwasher, washing machine, pool pump, and EV charger after 10pm or on weekends, TOU saves you money. The 18c off-peak rate is genuinely cheap. Just avoid running anything big between 2pm-8pm weekdays.
Solar panels generate during the day, which overlaps with shoulder and peak periods. If you use your own solar during peak hours and export the rest, TOU can work well because you avoid the high peak rate.
If you work from home, have kids doing homework at 4pm, and cook dinner at 6pm with the aircon running, TOU will punish you. The peak rate of 45c is brutal. Stay on flat rate.
The Simple Test
If you can honestly say you use less than 20% of your electricity during peak hours (2pm-8pm weekdays), TOU probably saves money. If you are not sure, stay on flat rate. The downside of getting TOU wrong is a bigger bill.