What is a time-of-use tariff?

A time-of-use tariff is an electricity pricing structure where the cost of energy changes depending on when it is used. Instead of paying a flat rate throughout the day, businesses are charged different prices at peak and off-peak times. This approach reflects the real cost of generating and delivering power, encouraging more efficient use of energy.

Peak Hours

When demand on the grid is highest, electricity costs more.

Off-Peak Hours

When demand is lower, prices are cheaper.

Shoulder Periods

In some cases, there may be a mid-range price between peak and off-peak.

How does it help your business?

Time of use tariffs reward businesses that can be flexible with when they use energy. By shifting certain activities away from peak times, companies can:

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Cut costs by taking advantage of lower off-peak rates

Increase sustainability by reducing demand at times when the grid relies more on fossil fuels

Boost efficiency by matching energy use with operational needs in a smarter way.

For many small businesses, even small changes, such as running high-energy equipment or charging EVs outside of peak hours, can add up to meaningful savings.

At PE, we help businesses understand whether a time-of-use tariff is right for them and how to get the most out of it.

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