Time-of-use tariffs: accessing off-peak and EV tariffs with a smart meter

• What is a time-of-use tariff?

• Smart meters and time-of-use tariffs

• What types of time-of-use tariffs are there?

• What are off peak tariffs?

• Electric vehicle tariffs

• Benefits of time-of-use tariffs

Time-of-use tariffs offer different prices for energy at different times of the day, or on different days. With these tariffs, energy is cheaper at off-peak times, such as when less people are using energy, or when there is more renewable energy being generated.

For example, if you use your washing machine when there is a lot of renewable energy being produced (on windy or sunny days), your energy could be cheaper than if you were on a fixed rate tariff. Or, if you have an electric vehicle, you could have an electric vehicle (EV) tariff which would make it cheaper to charge your electric vehicle at night.

You may have heard of Economy 7 or Economy 10, which are older types of time-of-use tariffs, sometimes known as off-peak tariffs. However, newer flexible time-of-use tariffs are now available, such as electric vehicle tariffs and tracker tariffs. These require a smart meter to get all the benefits.

Off-peak energy tariffs and time-of-use tariffs are completely optional. They have been designed to help you save money on your bills, so you can feel more in control of the energy you’re using and your energy bills.

You may have heard of time-of-use tariffs being referred to as ‘smart meter tariffs’. This is because smart meters are needed to access most time-of-use tariffs. As more of us get smart meters, more time-of-use tariffs will become available, thanks to the half-hourly readings they provide.

Half hourly meter readings mean that your smart meter will send a meter reading to your supplier every 30 minutes. This lets suppliers know how much to charge consumers on time-of-use-tariffs, based on when they’ve used energy. This data also helps energy suppliers understand how much energy is being used around the country, and when. With this information, energy suppliers will be able to offer even more tariffs – like time-of-use tariffs – and energy saving schemes to suit our different lives.

Smart meter tariffs: which tariffs do you need a smart meter for?

There are two main types of smart time-of-use tariffs: static and dynamic.

• A static time-of-use tariff offers two or more rates for electricity at fixed times of the day. For example, a lower price during the day and overnight as compared to weekday evenings. Examples of static time-of-use tariffs include Economy 7 tariffs, which charge a cheaper rate for electricity for 7 hours a day, usually at night, and most EV charging tariffs.
• A dynamic time-of-use tariff offers a different price per unit of energy depending on the time of day. The times and rates can change from day to day. For example, the price may depend on the amount of wind power that is predicted for a particular time.

These are both different to a standard tariff, which charges a flat rate throughout the day. The standard tariff is the most common tariff type in England, Scotland and Wales.

What are off-peak tariffs?

Off-peak tariffs are a type of time-of-use tariff. With these tariffs, you’ll be charged less for using energy at off-peak times, when there is less demand for energy. Such as at night, or when there is a lot of energy being generated, for example on very windy or sunny days.

Electric vehicle tariffs

Electric vehicle (EV) tariffs are another type of time-of-use tariffs. With electric vehicle tariffs, it is typically cheaper to use energy at night. This means that electric vehicle owners can charge their cars for less when they are less likely to be driving them.

Time-of-use tariffs can help you save money if you are able to use less energy when demand for energy is high. When demand for energy is high, more people want to use energy. This means energy is more expensive because we need to rely on fossil fuels to ensure everyone can use electricity at the same time.

You could also save money if you use energy when there is more renewable energy being generated. For example, when there are strong winds across the country. Energy is cheaper when there is a lot of solar and wind power available, and more expensive when diesel-powered generators (which burn fossil fuels) are used.

With a time-of-use tariff, if you can be flexible with how and when you use energy, you could save money on your bills.

But that isn’t all…

Choosing a smart time-of-use tariff will help our energy system become greener because it encourages you to use energy when there is less demand. For example, later in the evening or on weekends. So, we can use more renewable energy across the day to make our system cleaner and greener.

^{Please note: Eligibility may vary.}