How time-of-use pricing works
A smart meter records your usage every 30 minutes, so your retailer can charge each half hour at the price for that time of day. A time-of-use plan usually has two or three prices:
- Peak: the late afternoon and evening, when demand on the grid is highest. The most expensive rate.
- Off-peak: overnight and, on many plans, parts of the morning. Cheaper.
- Shoulder or solar soak: on many plans, a cheap midday window when rooftop solar floods the grid.
The hours differ by network and by retailer. Our peak and off-peak times guide lists the windows for each state.
Regulated time-of-use prices in Victoria
Victoria publishes a regulated time-of-use price for every network as part of the Victorian Default Offer, which makes it the clearest place to see how the numbers stack up.
| Network | Peak | Solar soak | Off-peak | Supply |
|---|---|---|---|---|
| AusNet Services | 47.64c | 17.59c | 22.6c | $1.28/day |
| CitiPower | 38.31c | 16.59c | 21.17c | $1.21/day |
| Jemena | 37.57c | 17.65c | 21.76c | $1.27/day |
| Powercor | 41.67c | 17.26c | 22.49c | $1.38/day |
| United Energy | 40.32c | 17.26c | 22.14c | $1.19/day |
Will time of use save you money?
The answer depends on your usage pattern. The table prices three households on the AusNet Services regulated rates above and compares their average cost per kWh with the flat usage rate of 31.98c.
| Household | Peak share | Time of use | Flat | Difference |
|---|---|---|---|---|
| Out all day, busy evenings | 50% | 34.62c | 31.98c | +2.64c |
| Typical household | 35% | 30.36c | 31.98c | -1.62c |
| Home by day or shifting loads | 25% | 27.11c | 31.98c | -4.87c |
On these prices, a home using around 4,000 kWh a year saves or loses roughly $40 for every 1c difference in its average price. Your smart meter data shows your real split. Ask your retailer for it, or download it from your online account.
Who time of use suits
Likely to save
- Home during the day
- Rooftop solar or a battery
- Hot water, pool pump or EV charging on a timer
- Able to run the dishwasher and laundry outside the evening
- Savings shrink if habits slip back into the evening
Best for: Flexible households and solar homes.
Likely to pay more
- A flat rate keeps bills predictable
- Out all day, with cooking, heating and washing after 4pm
- Electric heating used through winter evenings
- Little scope to move usage
Best for: A flat rate plan, if one is available on your meter.
Making time of use work for you
Put big loads on timers
Dishwashers, washing machines, dryers, pool pumps and EV chargers can nearly all start on a delay. Set them for the middle of the day or overnight.
Pre-heat or pre-cool
Run the air conditioner before the peak starts, then let the house coast through the expensive hours.
Use your solar at home
A solar home on time of use gains twice: daytime power is cheap or free, and you avoid buying at the peak price.
Review after a few bills
Check your peak share after two or three bills. If it stays high, ask your retailer about a flat rate plan.
Smart meter protections
Under rules made by the AEMC in 2024, retailers in the National Electricity Market cannot move you to a time-varying tariff for two years after a smart meter is installed under the accelerated rollout unless you give explicit, informed consent.
Questions about time of use
A pricing structure where the rate you pay per kWh depends on when you use it. Usage in the evening peak costs the most, overnight and midday usage costs less. It needs a smart meter that records usage every 30 minutes.
Only for households that use a modest share of their power in the peak. On Victoria's 2026-27 regulated AusNet prices, a home using about 35% of its power from 4pm to 9pm pays slightly less than on the flat rate, while a home using half its power in the peak pays more.
Usually, if your retailer offers a flat rate on your meter and network tariff. Some networks have moved smart meter homes onto time-of-use network tariffs, and some retailers no longer offer flat rates in those areas. Ask your retailer or compare plans on Energy Made Easy.
Under AEMC rules, retailers in the National Electricity Market cannot move you to a time-varying tariff for two years after a smart meter is installed under the accelerated rollout without your explicit, informed consent. After that, check your plan's terms and any price change notice.
It often is. Your panels cover usage in the cheap middle of the day, and the price you pay is highest when your panels are producing little. A battery lets you avoid the peak price almost entirely.
Most networks set the peak somewhere between 3pm and 9pm. Victoria's regulated peak is 4pm to 9pm every day, and Ausgrid's network peak is 3pm to 9pm in summer and winter. Your plan sets the exact hours.
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.