Guide

Flat Rate vs Time of Use Electricity — Which Is Right for You?

The right tariff type depends on when you use power, not how much you use. A flat rate charges the same per kWh regardless of time of day. A time-of-use tariff charges more during peak periods and less during off-peak times. For most households, flat rate is simpler. For households that can shift usage away from the evening peak — or that have solar or a battery — time-of-use can save money. Upload your bill and your Coach will tell you which tariff suits your usage pattern.

What is a flat rate electricity tariff?

A flat rate (sometimes called a single rate or anytime tariff) charges the same price per kWh for every unit of electricity you use, whatever time of day or day of the week. It's the simplest tariff type. If you use 1 kWh at 3pm on a weekday, it costs the same as 1 kWh at 11pm on a Saturday.

Flat-rate plans suit households whose usage is spread evenly across the day, or households where shifting usage to off-peak times isn't practical — for example, a family with young children whose evening routine is fixed.

What is a time-of-use tariff and when does peak pricing apply?

A time-of-use (TOU) tariff splits the day into peak, shoulder, and off-peak windows. Peak hours are typically weekday afternoons and evenings — often 3pm to 8pm or 4pm to 9pm depending on the network. Off-peak is typically overnight (after 10pm or 11pm) and weekends. Shoulder fills the gap.

Peak rates can be 2–3 times higher than off-peak rates. The exact windows and prices vary by network and retailer — check your bill or plan documents for the specific times that apply to your address.

Which households benefit most from time-of-use pricing?

Time-of-use saves money for households that can move significant usage out of the evening peak. The biggest movable loads are dishwashing, washing machines, clothes dryers, pool pumps, and electric vehicle charging. If you can run those overnight or in the middle of the day, you'll save on a TOU plan.

TOU rarely benefits households that are home all day with high air-conditioning loads in summer afternoons, or households with electric heating that runs through the evening peak in winter.

Does time-of-use work if you have solar?

Often, yes. Solar generates the most during the middle of the day — exactly when off-peak or shoulder rates apply on most TOU plans. If you have a battery, it stores cheap daytime solar and discharges during the expensive peak window, multiplying the savings.

Without a battery, the calculation is closer — your peak imports are small (because you're self-consuming the solar) but happen at the worst times. The right answer depends on your specific solar size, usage profile, and the rates on offer in your area. The free comparison tool at energymadeeasy.gov.au shows every plan available to you.

How do you switch between tariff types?

Most retailers offer both flat rate and TOU plans. Switching between them with the same retailer is usually free and takes effect on your next bill cycle. You may need to switch retailers if your current retailer doesn't offer the tariff type you want — that's also free, and Energy Made Easy or your Coach can help you compare.

If you have an older accumulation meter, your retailer may need to install a smart meter before you can move to a TOU plan. Retailers must provide this; some charge an installation fee, which varies.

Frequently asked questions

Is time of use always cheaper?
No. If most of your usage is between 3pm and 8pm on weekdays — the typical peak period — time-of-use can cost more than a flat rate. It benefits households that can shift dishwashing, washing, and charging to evenings or mornings.
Does time of use require a smart meter?
Yes. A smart meter (interval meter) is required to measure your usage by time-of-day. If you have an older accumulation meter, you can request a smart meter upgrade — retailers must offer this, though some charge an installation fee.
Can I switch from flat rate to time of use without changing retailers?
Usually yes. Most retailers offer both tariff types. Contact your retailer and ask about switching — it's usually a free change and takes effect on your next bill.
My Coach recommended time-of-use — should I switch?
Your Coach looks at your actual usage pattern from your bill before recommending a tariff change. If it recommends time-of-use, it's because your usage pattern suggests you'd save. Check what hours your usage peaks before switching.

Related guides

Which tariff suits your usage?

Your Coach reads your bill, looks at when you actually use power, and tells you whether flat rate or TOU saves more.

Upload your bill and ask your Coach →

Last updated: 24 April 2026