Electricity Tariffs refer to the way you pay for your electricity plan. Tariffs will vary depending on your business electricity distributor, the type of supply meter and the benefits that the tariff provides. Electricity brokers can help you or your business determine which type of tariffs is more beneficial for you. The different types and benefits of electricity tariffs are:
- Single Rate
- Time Of Use
- Controlled Load
- Demand
- Gas Tariffs
Single Rate Electricity Tariff
In Single Rate Tariffs, you pay the same energy rate no matter the time of the day. They don’t have peak or off-peak periods that increase your rate. They are also referred to as:
- Flat Rate
- Standard Rate
- Anytime Rate
- Peak Rate.
Single rate tariffs tend to have a cheaper rate than tariffs with peak and off-peak periods. This makes them great for businesses or residents that have a high electricity usage in the afternoon during the week. They are also beneficial for people that use appliances such as the washing machine more during the week.
Time of Use Electricity Tariff
If your usage of electricity is mainly centered around the weekend, Time of Use electricity tariffs can give you great deals.
These tariffs have different prices at different times of the day. With more popular times and days having higher rates and vice-versa. For these types of tariffs you need a smart meter to measure your energy usage. Smart meters can allow retailers to lower their operation costs which benefits you. However, you would need to cover the initial cost of it.
The different types of electricity rate periods work as following:
- Peak periods: This is when electricity is used the highest. In most cases this is the afternoons around 3-9pm on weekdays. However, this can change depending on the electricity retailer.
- Off peak periods: This is usually overnight or on weekends when the business energy and residential energy is used less.
- Shoulder periods: Rates are cheaper than peak periods but more costly than off-peak. They are periods between peak and off-peak.
Your specific periods are outlined in the Basic Plan Information Document (BPID) given to you by your electricity provider. Compare Business Electricity can help you determine which periods and rates are better for your energy usage with their inside industry knowledge and experience.
Controlled Load Electricity Tariff
Controlled load tariffs are meant for specific appliances that have a high electricity usage. This is often the case if you have an electric hot water system or other similar services. Often those appliances will have their own meter and they will be charged their own rate.
The benefit of controlled load electricity tariffs is that the rates are usually lower. This is because they are only used for appliances that run overnight. They can help reduce your electricity bills if you do have appliances that use a lot of electricity. These appliances need to be able to be separately metered.
Demand Electricity Tariff
Demand electricity rates measure the intensity of usage in kilowatts, instead of your usage over time. Your demand is high when you are using a lot of things at the same time. This means that you get demand charges on top of the normal usage and supply charges.
Depending on the electricity retailer, you will be charged in different ways:
- Highest Demand – your highest demand in a period of time is calculated and used to determine your electricity rate
- Average Demand – an average demand for the electricity is calculated
- Different demand rates – depending on the different season or time of year
You would be required to have a smart meter or similar for this kind of tariff.
Gas Tariffs
Electrical gas plans are usually only available with single rate tariffs. Gas plans are usually divided into daily, monthly or quarterly usage blocks. A block is how your electricity retailer charges you for the gas. This means that you pay an initial rate for your first block and different rates for the following ones. Seasonal rates can often apply with higher rates in winter.
Final Thoughts
Different tariffs will benefit your residency or business depending on the electricity usage you have. Different electricity retailers will charge you in different ways. It is recommended to get an electricity broker if you need to get a better tariff more suited to you. Particularly if you have high electricity usage or demand.
Electricity Brokers are well established and highly valued brokers that provide electricity brokerage to residencies and businesses. Our professional broker specialist will be able to give you a tariff analysis and reduce your electrical bill.