Time of Use Tariff UK: Off-Peak Hours & Energy Saving Guide
A time of use tariff is an electricity plan where your unit rate changes depending on when you use energy. In the UK, electricity is usually cheaper during off-peak hours and more expensive during busy peak times.
This type of tariff can help reduce energy bills if you can shift usage, such as EV charging, laundry, or dishwashing, to cheaper periods.
Table of Contents
What is a Time of Use Tariff?
A time of use tariff is an electricity plan where the price of electricity changes depending on the time of day. Instead of paying one fixed unit rate all day, you pay different rates during peak and off-peak hours.In the UK, off-peak electricity is usually cheaper because demand is lower, often at night or during quieter periods.
Peak hours are usually more expensive because more people are using electricity at the same time.A time of use tariff can be useful for households that can move some electricity usage to cheaper times.
For example, you may save money by charging an electric vehicle overnight, running a washing machine during off-peak hours, or using appliances when demand is lower. In simple words, this tariff rewards flexible energy use. The more you can shift your electricity usage away from expensive peak hours, the more useful a time of use tariff may be for your home.
How Does a Time of Use Tariff Work in the UK?
A time of use tariff works by charging different electricity rates at different times of the day. In the UK, electricity is usually cheaper during off-peak hours and more expensive during peak hours when demand is high. This type of tariff is useful for households that can shift some electricity use to cheaper periods.
- A time of use tariff divides the day into different price periods.
- Off-peak hours usually have lower electricity rates because fewer people are using energy.
- Peak hours usually have higher rates because demand is greater, often in the evening.
- Some tariffs may also include shoulder hours, which are medium-rate periods between peak and off-peak times.
- A smart meter is usually needed because it records when electricity is used.
- Households can reduce costs by moving flexible energy use to cheaper times, such as:
- EV charging
- Laundry
- Dishwashing
- Water heating
- Home battery charging
- The more energy you use during off-peak hours, the more useful this tariff can be for your electricity bills.
Pros and Cons of Time of Use Tariffs
A time of use tariff can be helpful for UK households that can use electricity during cheaper off-peak hours. However, it may not suit every home. Before switching, it is important to compare the benefits and risks based on your daily electricity usage, smart meter setup, and peak-time energy habits.
Pros of Time of Use Tariffs
- Cheaper off-peak electricity: You can pay lower rates during off-peak hours, often at night or during quieter demand periods.
- Good for EV owners: A time of use tariff can help electric vehicle owners charge their cars overnight at a cheaper rate.
- Useful for flexible households: If you can run appliances like washing machines, dishwashers, or tumble dryers outside peak hours, you may reduce your energy bills.
- Supports smart energy use: These tariffs encourage people to use electricity when demand is lower, which can help reduce pressure on the UK energy network.
Cons of Time of Use Tariffs
- Peak rates can be expensive: Electricity may cost more during busy hours, especially in the evening when many homes use power.
- Not ideal for every lifestyle: If your household uses most electricity during peak hours, a time of use tariff may increase your bill instead of reducing it.
- Smart meter may be required: Many modern time of use tariffs need a smart meter to track when electricity is used.
- Needs careful planning: You may need to change your routine and schedule appliances to get the best value.
Overall, a time of use tariff can be a good option if you can shift energy use to cheaper periods. But if your electricity use is mostly during peak hours, a standard fixed tariff may be simpler and more suitable.
Time of Use Tariff VS Fixed Energy Tariff
A time of use tariff and a fixed energy tariff work in different ways. A time of use tariff changes the electricity rate depending on when you use energy, while a fixed tariff usually keeps the unit rate the same throughout the day.
Feature | Time of Use Tariff | Fixed Energy Tariff |
Pricing method | Electricity rates change by time of day | Unit rate usually stays the same all day |
Peak hours | Usually more expensive during busy times | No separate peak rate in most fixed tariffs |
Off-peak hours | Usually cheaper during low-demand periods | No special off-peak saving unless included |
Best for | Flexible households that can use energy off-peak | Households that want simple and predictable pricing |
Common Types of Time of Use Tariffs in the UK
In the UK, there are different types of time of use tariffs. Each tariff charges electricity at different rates depending on when energy is used. Some are simple, while others need more flexible energy habits.
1 Static time of use tariffs: These have fixed peak and off-peak hours. For example, electricity may be cheaper overnight and more expensive in the evening.
2 Dynamic time of use tariffs: These rates can change more often, depending on electricity demand and market prices.
3 Economy 7 tariffs: This type gives around 7 hours of cheaper electricity, usually at night. It is often useful for storage heaters and overnight usage.
4 Economy 10 tariffs: This gives around 10 hours of cheaper electricity, often split across different times of the day and night.
5 EV time of use tariffs: These are designed for electric vehicle owners who can charge their cars during cheaper off-peak hours.
These tariffs can be useful, but the best option depends on your energy usage, meter type, and how easily you can shift electricity use to cheaper times.
What to Check Before Switching to a Time of Use Tariff
Before switching to a time of use tariff, it is important to check whether it matches your daily electricity usage. These tariffs can help reduce bills, but only if you can use more energy during cheaper off-peak hours and avoid high peak rates.
Your energy usage pattern: Look at when you use the most electricity. If most of your usage is in the evening peak hours, this tariff may not save you money.
Peak and off-peak times: Every supplier can set different time periods, so check exactly when cheaper and expensive rates apply.
Unit rates and standing charge: Compare the off-peak rate, peak rate, and daily standing charge with your current tariff.
Smart meter requirement: Many time of use tariffs need a smart meter to record when electricity is used.
Lifestyle flexibility: Check whether you can shift activities like EV charging, laundry, dishwashing, or water heating to cheaper hours.
Contract terms: Review exit fees, contract length, and whether the tariff rate can change.
A time of use tariff can be a good choice if your household is flexible. However, if you cannot move usage away from peak hours, a standard fixed tariff may be more suitable.
Is a Time of Use Tariff Worth It in the UK?
A time of use tariff can be worth it in the UK if you can move your electricity use to cheaper off-peak hours. It is especially useful for homes with electric vehicles, battery storage, storage heaters, or appliances that can be scheduled at night.
However, it may not be the best option for every household. If you use most of your electricity during peak evening hours, you could end up paying more than you would on a standard tariff.
A time of use tariff is worth considering if:
- You can charge an EV overnight
- You can run appliances during off-peak hours
- You have a smart meter
- You can avoid heavy electricity use during peak times
- You want more control over your energy bills
Overall, a time of use tariff is a good choice for flexible UK households. But before switching, compare the peak rate, off-peak rate, standing charge, and your normal electricity usage pattern.
When Are Off-Peak Electricity Times in the UK?
Off-peak electricity times in the UK depend on your supplier, tariff type, meter, and location. There is no single off-peak time that applies to every home.
For many traditional Economy 7 tariffs, off-peak electricity is usually available for around seven hours overnight, often between midnight and 7am, but this can vary. Some time of use tariffs may offer cheaper rates late at night, early morning, or even during selected daytime periods.
Common off-peak patterns may include:
- Overnight cheaper rates, such as midnight to 7am
- Late-night EV charging windows
- Super off-peak hours for very low-demand periods
- Different peak, off-peak, and shoulder rates during the day
The best way to check your exact off-peak times is to look at your energy bill, supplier app, online account, or contact your UK energy supplier directly. If you are on a smart time of use tariff, your smart meter helps record when you use electricity so the correct rate can be applied
Conclusion
A time of use tariff can help UK households save money if they use more electricity during cheaper off-peak hours. It is useful for EV charging, storage heaters, and flexible appliance use. Before switching, compare peak rates, off-peak rates, standing charges, and your normal energy usage to make sure it is the right choice.
For more detailed guides and the latest updates, explore our Energy Guide.
FAQs
Here are some common questions people ask before choosing a time of use tariff in the UK.
Q1 Do you need a smart meter for a time of use tariff?
Yes, most modern time of use tariffs need a smart meter. This is because the supplier must track when you use electricity and charge the correct peak, off-peak, or shoulder rate.
Q2 Can a time of use tariff save you money?
Yes, a time of use tariff can save money if you use more electricity during cheaper off-peak hours. It works best when you can shift usage like EV charging, laundry, dishwashing, or water heating to lower-rate times.
Q3 Who should consider a time of use tariff?
A time of use tariff is suitable for EV owners, storage heater users, battery storage users, and households that can use electricity flexibly. It can also be useful for people who use more energy overnight.
Q4 Who may not benefit from a time of use tariff?
Households that use most electricity during peak evening hours may not benefit. If you cannot shift energy use to cheaper times, a standard fixed tariff may be simpler and more suitable.
Q5 How can you make the most of a time of use tariff?
You can make the most of a time of use tariff by using more electricity during off-peak hours. Try charging your EV overnight, running appliances at cheaper times, and avoiding heavy electricity use during peak hours.
