How do time of use tariffs work?
Most people think of energy tariffs as about as exciting as watching paint dry, but time of use tariffs are a bit different, and there’s a clever reason energy companies are keen for you to try them.
What’s a time of use tariff, then?
In plain English, it’s a deal where the price you pay for electricity varies depending on the time of day. There are “off-peak” hours (usually overnight or early morning) when electricity is cheap as chips, and “peak” hours (when everyone’s boiling the kettle and watching telly).
Why do energy companies offer them?
Here’s the real story: running the grid is a bit like running a busy pub on a Friday night. If everyone turns up at once, it gets chaotic – and expensive. The grid has to fire up extra (often dirtier and pricier) power plants to meet that peak demand, which costs everyone more.
By offering you cheaper rates when demand is low, energy companies are basically saying, “Fancy coming in for a quiet pint on a Tuesday instead?” If more people use power when it’s plentiful and cheap (like at night), it smooths out the peaks, reduces the strain on the grid, and means they don’t have to pay through the nose for extra supply. You both save money and the whole system runs better with less strain and lower carbon emissions.
Plus, with more renewables on the grid (think wind turbines spinning at 2am), there’s often loads of clean energy going spare overnight. Time of use tariffs help make sure that energy doesn’t go to waste.
How does it work for you?
- On a time of use tariff:
- You pay less for electricity during off-peak hours (like 7–9p per kWh).
- You pay more during peak hours (currently around 25p per kWh).
- With a Vimma battery:
- You charge up when it’s cheap and use that power when prices are high. No need to change your routine.
Is it worth it?
If you’re happy to shift some of your usage (or let a battery do it for you), you can save hundreds a year – all without faffing about or living by the clock.
The bottom line
Time of use tariffs aren’t just a win for you, they’re a win for the whole energy system. You pay less, the grid runs smoother, and there’s less waste all round. No jargon, no nonsense - just smart, straightforward savings.
Here’s What Others Have to Say
Energy Saving Trust - Smart time of use tariffs: all you need to know