Why it matters when you use energy

Electricity doesn’t cost the same at every hour of the day. At times when demand is high, prices can rise. At quieter times, or when there’s more renewable generation on the grid, energy can be cheaper. These price differences aren’t often accounted for in your bills, as most people in the UK are on a single-rate tariff which always costs the same. If you switch to a time-of-use tariff you could get cheaper electricity during off-peak hours.

In the example below, a family could get much greater savings from their time-of-use tariff by being flexible about when they use electricity. Use the sliders to move their daily tasks to different times, and you’ll see how changing when they do activities can reduce their annual bill, without using any less energy.

If you need any support accessing the interactive tool below, please get in touch or call our advice line and we would be happy to assist you.

While you are moving things around, think about how you could move your own energy usage. For example:

• Could you batch cook on the weekend in hours when electricity is cheaper?
• Could you use a slow cooker to cook during the day whilst you are out of your home?
• Is your washing machine programmable to set to start in the cheapest hours?
• Can you shift your shower times out of peak hours?

How to start saving on your bills

Start by understanding when you use electricity and think about how easy it would be to shift some of that usage to different times of the day.

Next, contact your energy provider and ask about the different options that they provide. To benefit from time-of-use pricing, you’ll need a smart meter and to be on a time-of-use tariff.

A smart meter

Smart meters record when you use electricity and automatically send this information to your supplier. Installation is free, and we recommend speaking to your energy supplier to get one yourself.

A smart tariff

Once you have a smart meter, the next step is to choose a smart tariff with on peak and off peak rates so that you can take advantage of cheaper electricity costs throughout the day. Most people currently pay a single rate for their electricity at all times of day, so taking advantage of cheaper rates can offer savings without needing to use any less electricity.

Time-of-use tariffs offer fixed rates through the day, as in the graph above. These tariffs are suitable for anyone who wants to change when they use electricity to get a lower electric bill with the cheapest electricity rates.

Dynamic time-of-use tariffs change throughout the day based on real-time demand and supply on the grid. This can lead to greater savings, but it requires greater flexibility and you need to be able to respond quickly to changing prices. These tariffs are perfect for people who can shift their electricity use at short notice to take advantage of cheaper rates when demand is low. There can also be zero cost or negative cost electricity available through dynamic time-of-use tariffs.

It’s always a good idea to reach out to your energy provider to find out what tariffs are available for you.

How can I maximise my energy savings?

The Energy Choices Tool is a great way to find out how you can save on your bills. It can give you personalised advice on increasing your savings, making your home greener and flexing your energy usage.

There are also some other useful tips for maximising your bill savings:

Identify which appliances use the most energy. Ovens, electric showers, washing machines, and other bigger appliances offer the biggest savings if you can change when you use them. Check out our advice page on understanding how much energy things cost.

Use timers and smart plugs. These are a cheap and easy way to shift using some appliances to cheaper periods, such as in the night or when you are out of your home. Some appliances like washing machines have built in timers for delaying when they start, which has the same effect.

Consider low-carbon technologies. Heat pumps, solar panels, or home battery systems can give you more control over when you use or store energy.

Remember that time-of-use tariffs have higher prices in peak times. If you use most of your energy during peak hours, and are not able to move your electricity usage out of these times, your bills could be higher.