Tariff Types
Understanding your electricity tariff helps you choose the right plan for your household.
Single Rate (Flat / Anytime)
What it is
You pay one flat rate per kWh no matter what time of day or day of the week you use electricity, plus a fixed daily supply charge.
Why you'd choose it
Simplicity. You don't need to think about when you run the dishwasher or charge the car — every kWh costs the same.
Pros
- +Easiest to understand and predict
- +No penalty for using power during the day or evening
- +Good fit if your usage is spread evenly across the day (e.g. always home, shift workers, retirees)
- +If you have solar: running high-usage appliances (dishwasher, washing machine, pool pump) during daylight hours still saves you money — not because the tariff rewards it, but because you're using free self-generated solar instead of buying grid power. The saving comes from self-consumption, not from the tariff structure itself.
Cons
- –Misses out on cheap off-peak rates
- –Usually not the lowest-cost option if you have solar or an EV and can shift usage to off-peak/solar hours
- –Rate is often (not always) a bit higher than ToU off-peak rates to compensate the retailer
- –Because the rate is flat, single rate customers get no extra reward for shifting usage to daytime beyond the solar self-consumption saving itself — a ToU + solar household shifting the same load could stack a cheaper daytime rate on top of that saving
Time of Use (ToU)
What it is
The rate you pay changes depending on when you use electricity — typically split into peak, shoulder, and off-peak windows, plus a daily supply charge. Peak is usually late afternoon/evening on weekdays, off-peak is overnight, shoulder covers everything else.
Why you'd choose it
You have flexibility to shift usage (e.g. running the pool pump, EV charger, or dishwasher overnight or midday) and want to be rewarded for it.
Pros
- +Can be significantly cheaper if you can shift load to off-peak/shoulder
- +Pairs well with solar (many exports happen in low-demand daytime hours) and EV charging (overnight)
- +Often mandatory for new smart meter installs, so becoming the norm anyway
Cons
- –Peak rates can be noticeably more expensive than a flat rate
- –Costs more to get wrong — households that use most power in the evening peak (cooking, TV, aircon after work) can end up paying more than on a single rate
- –Requires a bit more attention/habit change to get the benefit
Demand Tariff
What it is
In addition to (or instead of) a usage rate, you're charged based on your highest rate of electricity draw (kW) during a defined window — e.g. your highest 30-minute average demand in a billing period, often just during peak hours.
Why you'd choose it
Some networks apply this automatically to specific customer types (e.g. solar/battery households on certain networks). It rewards spreading out demand rather than running everything at once.
Pros
- +Can reward households that avoid running lots of high-draw appliances simultaneously
- +Often lower usage (c/kWh) rates to offset the demand charge
- +Can suit larger homes with solar/battery that can manage peak draw actively
Cons
- –Hard to predict and control — one afternoon of oven + aircon + EV charging at once can set your charge for the whole billing period
- –Requires active management or automation (e.g. battery, smart devices) to get value from it
- –Bill shock risk for households unaware of how it works
Block / Inclining (or Declining) Block Tariff
What it is
The price per kWh changes once your usage crosses a threshold within a billing period — e.g. the first 100 kWh at one rate, everything after at a higher (inclining) or lower (declining) rate.
Why you'd choose it
Less common in the NSW residential market today, but some legacy or regional plans still use it.
Pros
- +Inclining blocks can encourage conservation (rate goes up the more you use)
- +Declining blocks can reward higher, steady usage (e.g. all-electric homes)
Cons
- –Less transparent — easy to lose track of which block you're in
- –Inclining blocks penalise larger households or those with EVs/pools regardless of when they use power
- –Increasingly rare in NSW, being phased out in favour of ToU/demand tariffs
Controlled Load (Off-Peak Dedicated Circuit)
What it is
A separate, discounted rate for a specific circuit — almost always hot water systems, sometimes pool pumps — that the network switches on/off at set times (usually overnight). This sits alongside your main tariff, not as a standalone one.
Why you'd choose it
If you have an electric hot water system or pool pump, this is usually a straightforward saving with no behaviour change required.
Pros
- +Cheaper rate for a large, predictable load
- +No day-to-day effort — the network handles the switching
- +Compatible with either Single Rate or ToU as your main tariff
Cons
- –No control over exactly when it switches on within the window
- –Not useful if you don't have hot water/pool equipment on a dedicated circuit
- –Being phased out on some networks in favour of ToU hot water or flexible exports
Flexible / Dynamic Pricing (incl. Critical Peak Pricing)
What it is
Rates vary more granularly than standard ToU — sometimes hourly, sometimes tied to wholesale prices. Critical Peak Pricing (CPP) charges a much higher rate on a handful of 'event days' per year (extreme demand days), with lower rates the rest of the time.
Why you'd choose it
Households with solar, batteries, or the ability to actively respond to price signals can potentially save a lot — but it requires engagement or automation.
Pros
- +Potential for the lowest average cost if you can respond to price signals
- +Rewards flexible, tech-enabled households (batteries, smart EV chargers)
- +Can access very cheap or negative wholesale-linked pricing at times
Cons
- –Real risk of very high costs during critical peak events or price spikes if you can't shift usage
- –Requires monitoring or automation — not 'set and forget'
- –Harder to compare/estimate savings without granular usage data
Feed-in Tariff (FiT)
What it is
Not a consumption tariff — this is the rate you're paid for solar electricity exported to the grid. Can be a flat rate or vary by time of day (some networks now pay less, or even nothing, during the solar-flooded middle of the day, and more in the evening).
Why you'd choose it
Not really a choice on its own — it comes bundled with your retail plan, but the structure matters if you have solar.
Pros
- +Time-varying FiTs can pay well for evening exports (e.g. from a battery)
- +Rewards households that can shift exports away from the solar-flooded period
Cons
- –Midday export rates are shrinking or going negative on some networks
- –Flat FiTs are simple but may undervalue evening exports compared to ToU FiTs
Two-Part / Capacity-Based Tariffs (Emerging)
What it is
A newer structure combining a demand or capacity charge (based on your maximum import/export capacity, often in kW) with a ToU usage rate. Increasingly used as the default network tariff for new solar, battery, and EV customers in NSW.
Why you'd choose it
Not usually a household choice yet — it's being rolled out as the new default network tariff by NSW distributors for customers with solar/EVs/batteries.
Pros
- +Designed to fairly price grid capacity as more homes add solar/EVs/batteries
- +Can reward households that manage their peak import/export smoothly
Cons
- –New and complex — genuinely hard for most households to understand or predict
- –Requires smart meter data and often home energy management to optimise
- –Cost impact is still poorly understood by most consumers
GridMate currently supports Single Rate tariffs, including Controlled Load and Solar Feed-in as add-ons. We are currently in development for Time of Use, Demand, Block, Dynamic/Critical Peak Pricing, and Capacity-based tariffs.