What are time-of-use (ToU) tariffs, and how do they affect my energy usage?

Time-of-use tariffs charge different rates depending on demand—higher at peak times, lower off-peak. Using aurora+, you can shift usage to cheaper or free periods, reducing bills and easing grid demand.

Time of use (ToU) tariffs are a type of electricity pricing structure where the cost of electricity varies depending on the time of day you use it. Unlike traditional fixed-rate tariffs, ToU tariffs charge higher rates during peak demand periods and lower rates during off-peak times. Using aurora+ is the easiest and best way to take advantage of these tariffs to help shift your electricity usage to cheaper (or free) times.

Back

How they work

  • Peak hours: These are times when electricity demand is highest such as weekday evenings when people are home using appliances. During these hours, electricity prices are higher to reflect the increased demand on the grid.
  • Off-peak hours: These are times when demand is lower, typically late at night or early in the morning. Electricity prices are lower during these periods.
  • Shoulder hours: These fall between peak and off-peak times and generally have intermediate pricing.
Back

Impact on energy usage

Time of Use tariffs encourage you to shift your energy usage to off-peak times to save money. 

For example:

  • Running appliances: You might run your dishwasher or washing machine late at night instead of during the evening peak hours.
  • Heating and cooling: Using programmable thermostats to heat or cool your home during off-peak times when required can also help reduce costs.

By adjusting your energy usage habits, you can take advantage of lower rates during off-peak times, potentially lowering your overall electricity bill and reducing strain on the energy grid. aurora+ is the simplest way to help achieve this, putting you in control by using a smartphone or tablet.