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What are the types of Energy Rates?

There are several types of electricity usage rates, defined primarily by your consumption patterns. Usage rates specifically charge for the energy you use and can be charged in multiple different ways. Below, you’ll find a list of these rates with brief explanations. 

  1. Flat Rates: A single rate for all electricity used, regardless of time.
  2. Time of Use (TOU) Rates: Vary based on time of day and day of the week, typically divided into:
    • Peak Rate: Highest cost during high demand hours (usually business hours).
    • Off-Peak Rate: Lowest cost during times of low demand.
    • Shoulder Rate: Intermediate rate between peak and off-peak.
  3. Tiered Rates: Different prices for various usage thresholds. Lower usage is cheaper, while exceeding thresholds increases costs.
  4. Demand Tariffs: Charges based on the highest electricity demand during a 30-minute period, aimed at reducing peak demand pressure. Commonly used for larger businesses but increasingly relevant for residential customers.

Separately, your invoices will often include a supply charge: a fixed daily charge to supply energy to your address, also known as a daily charge.

To check your specific rates, refer to your latest utility invoice, typically found on page 2. If you need help understanding it, follow our guide on How to Read your Invoice.

If you need, you can find our article on the exact specifics of the Time of Use rates here: What are Peak and Off Peak times?

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