Peak and off-peak tariffs: how time-of-use pricing inflates your bill
Two units of the same electricity can cost very different amounts depending on the hour you use them. That gap is a recoverable cost hiding in plain sight.
How time-of-use pricing works
A time-of-use tariff splits the day into peak and off-peak windows and prices each differently. Peak hours cost more because that is when the grid is most stressed. Your bill records how many units fell in each band.
Where the premium comes from
If a large share of your consumption lands in the peak window, you pay the peak rate on all of it. The premium is the difference between what you paid and what the same units would have cost off-peak — measured directly from your own peak and off-peak readings.
How load shifting recovers it
Not every process has to run at peak. Water heating, pumping, EV charging, batch work and storage can often move to off-peak hours without touching output. Each unit moved earns the full peak-to-off-peak gap.
Frequently asked
What are peak and off-peak hours?
Peak hours are the windows a utility prices highest because grid demand is greatest; off-peak hours are cheaper. The exact times are set by your tariff.
How do I lower my peak charges?
Shift flexible load — heating, pumping, charging, non-urgent batches — out of the peak window, and flatten short demand spikes. Both are measured from your bill so the saving can be quantified first.