Thursday, January 1, 2015

Are All Time Of Use Electricity Tariffs The Same?

The answer is NO. Differences are the number of hours offered on each tariff rate be it peak, shoulder and off-peak. And of course, the cost per tariff.

So let us take a look at two different TOU electricity retailers offers. Whilst electricity retailer's in one electricity distribution area may offer small changes to the costs, based on tariff rates, the biggest changes occur when one compares rates offered in one electricity distribution area to another.

For this exercise we are comparing an offer in the Essential Energy area, to an offer in the Ausgrid distribution area.

With any TOU plan, the hours in the week [a total of 168] are charged at different rates based on demand. For the actual times these tariffs are in force, please see our TOU TABLES.

TOU Differences
Time Of Use Differences Based On Distribution Area

As you can easily see there are big differences in the % of total hours per week per tariff type. This can make the TOU more or less suitable, when it comes to reducing electricity costs.

Some of the differences in the TOU plans offered are:

  • One distribution area has peak and shoulder charged at the same rate
  • Both TOU offers have completely different tariff times and rates

It is therefore essential to know at what time of day you are going to be using or not using electricity and how much. Once you have a better idea of this electricity usage in your home, you will be in a better position to know if the TOU will in fact save you on electricity costs.

An easy solution to see the differences in TOU plans, along with comparing a TOU to a flat rate or block rate, is to install ELECTRICITY MONITORING SOFTWARE with the capability of electricity tariff comparison.

See our blog post HERE for more on the difference is costs.

This blog post and podcast brought to you by Aussie Home Energy, a major player in the HOME ELECTRICITY SAVING SERVICE industry in Australia.
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