What is a time-shifted tariff?

A time-shifted tariff is an electricity pricing structure that varies based on the time of day. Instead of a fixed rate, these tariffs offer different rates during peak and off-peak hours. Here’s how it works:

Peak Hours: These are typically daytime hours when electricity demand is highest. During peak hours, the tariff rate is higher. For example, from 2 PM to 8 PM.

Off-Peak Hours: These are typically at night or the early hours of the morning when electricity demand is lower. The tariff rate during off-peak hours is lower. For example, from 10 PM to 6 AM.

Benefits

Cost Savings: Consumers with solar panels or battery storage can benefit by using electricity during off-peak hours when rates are lower.

Load Shifting: Time-shifted tariffs encourage load shifting, where you perform energy-intensive tasks (like running appliances) during off-peak hours to save money.

Considerations

Flexibility: To maximize savings, consumers need flexibility to adjust their energy usage based on tariff fluctuations.

Smart Meters: Smart meters help track usage by time, enabling accurate billing for time-shifted tariffs.

Remember, understanding your energy consumption patterns and adjusting usage accordingly can lead to cost savings with time-shifted tariffs!

How do I switch to a time-shifted tariff?

Switching to a time-shifted tariff can help you save on your energy bills by adjusting your usage based on different rates throughout the day. Here’s how you can do it:

Time-of-use tariffs are still relatively new in the UK, and only a few companies offer them and you may need to contact your energy supplier to inquire if they provide time-of-use tariffs.

Install a Smart Meter: To switch to a time-of-use tariff, you’ll need a smart meter installed, which you can do through your existing supplier at no cost.

Review your routine: Using the data from your smart meter you can see when you use the most electricity. You may be able adjust your habits to take advantage of off-peak hours for energy-intensive tasks. For example, run your washing machine later in the evening rather than in the day time.

Switch Tariffs: Whilst the options are limited, it is worth doing your homework and finding suppliers. Switching should be no more complicated than switching from a standard tariff.

Or…the biggest benefits come from when you have a storage battery. We have found that with or without solar panels or other forms of renewables, a battery enables you to choose when you use power from the grid, and when you use your ‘own supply’ as you can charge the battery during off-peak (and less expensive) times, and then discharge from the battery during peak hours.

It’s likely that time-shifted tariffs require some adjustments, but they can lead to cost savings and contribute to a greener energy future!

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