What an electricity tariff is
Your tariff is the set of prices on your plan. Every residential tariff has a daily supply charge for being connected, plus one or more usage rates in cents per kWh. What changes from one tariff to the next is how those usage rates are structured.
There are really two layers. Your distribution network charges your retailer a network tariff, and your retailer then sells you a retail tariff. Retailers usually mirror the network's structure, but they do not have to, so the times and rates on your plan are what count.
The main tariff types
Flat rate
One usage rate at any time of day, every day. It is the simplest tariff and the easiest to compare. You pay the same for a load of washing at 6pm as at 1pm, so there is no benefit in shifting usage, and no penalty for not shifting it.
Time of use
Different rates for different times of day, usually a high peak rate in the late afternoon and evening, and lower rates overnight and in the middle of the day. Most new time-of-use tariffs now include a cheap midday period, often called solar soak or solar sponge, because rooftop solar floods the grid at that time. You need a smart meter. Our time-of-use guide explains when it saves you money.
Peak 4pm to 9pm, solar soak 11am to 4pm, off-peak 9pm to 11am. See peak and off-peak times for every network.
Block or stepped tariff
The usage rate changes once you pass a set amount of usage in a billing period. They are less common than they used to be. The AusNet Services version of the Victorian Default Offer is technically a block tariff with a step at 1,020 kWh a quarter, but for 2026-27 both blocks are priced the same, at 31.98c/kWh.
Controlled load
A separate tariff for an appliance wired to its own circuit, usually an electric storage hot water system, and sometimes a pool pump or slab heating. The network switches the circuit on only at set times, in return for a much lower rate. It appears as a second line, and often a second meter, on your bill. See our controlled load guide.
Demand tariff
As well as usage, you pay a charge based on your highest power draw, measured in kW, during a peak window in the month. Running the oven, air conditioner, dryer and kettle at once during that window sets your demand charge for the whole month. Demand tariffs are common for businesses and are offered to households by some networks. They can work well for homes with batteries that cover the evening peak.
Solar export tariffs
If you have solar, your plan also has a feed-in tariff for the power you export. Some plans pay a single rate at any time, others pay more in the evening and less, or nothing, at midday. See solar feed-in tariffs by state.
How to choose the right tariff
Flat rate
- Simple to understand and compare
- No penalty for evening use
- No reward for shifting usage
- Midday solar is not cheaper
Best for: Homes that use most power in the evening and cannot change that.
Time of use
- Cheap midday and overnight power
- Rewards batteries, EVs and timers
- Expensive 4pm to 9pm peak
- Harder to compare plans
Best for: Homes with someone in during the day, solar, a battery or an EV.
Demand
- Lower usage rates
- Suits steady, spread-out usage
- One busy evening sets a month of charges
- Needs active management
Best for: Homes with a battery or very predictable usage.
Test it on your own data
If you have a smart meter, your retailer or distributor can give you your interval data. Comparison sites such as Energy Made Easy and Victorian Energy Compare can then price every tariff on your actual half-hour usage, which beats any rule of thumb.
Tariff availability by state
| State | Flat | Time of use | Controlled load |
|---|---|---|---|
| NSW | Yes | Yes, common with smart meters | CL1 and CL2 |
| Victoria | Yes | Yes, regulated in the VDO | Yes, where a circuit exists |
| Queensland | Yes | Yes | Tariff 31 and 33 |
| South Australia | Yes | Yes, with a long peak window | Yes |
| Western Australia | Home Plan A1 | Synergy daytime and EV plans | Check with Synergy |
| Tasmania | Tariff 32 | Tariff 93 | Tariff 41 (closed) and 62 |
| ACT | Yes | Yes | Yes |
| Northern Territory | Standard Residential | Yes, cheap 9am to 3pm | Not offered |
Smart meters make time-of-use and demand tariffs possible. Under a national rule, all homes in the National Electricity Market are due to have one by 2030, so more households will be offered, and in some cases moved to, these tariffs over the next few years. A new rule also stops a retailer moving you to a different tariff for two years after a smart meter goes in without your explicit consent.
Questions about electricity tariffs
Flat rate, where every kWh costs the same; time of use, with different rates at different times of day; controlled load, a cheaper rate for a separately wired appliance such as a hot water system; block tariffs, where the rate changes past a usage threshold; and demand tariffs, which add a charge based on your highest power draw in a peak window.
Only if enough of your usage falls outside the peak window, which is usually around 4pm to 9pm. Homes with solar, a battery, an EV or someone at home during the day often save. Homes that do most of their cooking, heating and washing in the evening often pay more. Test it on your own smart meter data before you switch.
Your distribution network charges your retailer a network tariff for using the poles and wires. Your retailer then charges you a retail tariff. Retailers often copy the network structure, but they can set their own times and rates, so always check the times and prices on your own plan.
Under the national smart meter rules, a retailer cannot move you to a new tariff for two years after a smart meter is installed without your explicit informed consent. You can still ask to change tariffs yourself at any time if a different one suits your usage better.
A tariff that charges for your highest power draw, in kW, during a peak window each month, on top of a usage rate. If you run several big appliances at once during that window, you set a high demand charge for the whole month. They suit homes with batteries or very steady usage and need some care to manage.
Yes. Time-of-use and demand tariffs need a meter that records when you use power, not just how much. Almost all Victorian homes already have one, and the rest of the National Electricity Market is due to be fully covered by 2030 under the accelerated rollout.
Sources
Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.