Single Rate Tariff

Single Rate Tariff is also called flat rate, standard rate, anytime rate or peak rate. There is no peak or off-peak period for a single rate tariff plan. This means that whenever you use energy, you pay the same rate. Rates are usually lower than peak rates of a time of use tariff. Single Rate Tariff could be a good choice for you if you stay at home on weekday evenings or you need to use more your appliances on weekdays. Everyone can enjoy a single rate tariff. You don’t need a smart meter to get a single rate tariff plan.

Peak and Off Peak Tariff

Peak and Off Peak Tariff is also called two-rate or time of rate. Peak and Off Peak is close to Flexible Tariff that different rates are charged depending on the time of day, but there is no ‘shoulder’ period. Electricity costs the most during the peak period, and be cheapest during Off peak period. Since different retailers will provide different start and end times of Peak and Off peak periods for their use plan, it is important to read Basic Plan Information Document or the retailer’s written summary of the plan. For Peak and Off peak plan, you need a meter to measure your electricity usage at different times of the day, like a smart meter or time of use meter.

Flexible Pricing Tariff

Flexible Pricing Tariff applies a different electricity usage rate depending on what time electricity is used. There are three periods that Peak, Off peak and shoulder. Peak period: electricity is in high demand, the highest rate is charged. Off peak: electricity is in low demand, retailers charge the lowest rate. Shoulder period is between peak and off-peak periods. Electricity is in mild demand, and the price is medium. Sometimes retailers would charge higher rates in summer months compared to ‘non-summer’ months. While flexible tariffs are a popular option, they may not be the most cost-effective option for households and businesses that use large amounts of electricity during peak demand. You need a meter to measure the amount of electricity used at different times, such as a smart meter or usage schedule.

Demand Tariff

Demand tariffs are relatively new to the residential market and could be a bit tricky. Essentially, Demand Tariff plans have regular usage and supply charges, but will have added demand charges on top. Demand is a measure of the intensity of your electricity usage at a point in time, rather than your electricity usage over time. That is to say, if you’re running multiple appliances, especially high energy appliances at once on a one-off occasion, a higher demand charge is applied for the entire month. While reduced usage can help you save money, if your usage is temporarily out of control, you may pay more. For that, you could contact the retailer directly to opt the arrangement. Moreover, you will need a smart meter to be eligible for Demand Tariff Plan.