--- title: "Time of Use tariff: explained" description: "Time of Use tariffs charge different electricity prices depending on the time of day. Learn how they work and how to save money by shifting your energy use." url: "https://www.fuseenergy.com/blog/time-of-use-tariff" updated: "2026-10-17" --- # Time of Use tariff: explained Time of Use (ToU) tariffs charge different electricity prices depending on the time of day, allowing you to save money by shifting your energy use. These tariffs are designed to reflect the fluctuating demand and cost of generating electricity, offering lower rates during off-peak hours and higher rates during peak times. For households looking to manage their energy bills, understanding and optimising a ToU tariff can be a strategic way to gain control over electricity costs. Understanding Time of Use tariffs can help you manage your energy costs effectively. Fuse Energy offers dual-rate variable tariffs designed to give you more control over your electricity usage and bills. Click [here](https://www.fuseenergy.com/app/boarding/premises) to see how Fuse can help you make the most of your energy. ## What are Time of Use tariffs? Time of Use tariffs are a type of electricity pricing where the cost per unit of electricity changes throughout the day. This variable pricing model moves away from a flat rate, offering a financial incentive to use electricity when it is cheaper. ### Understanding variable pricing With variable pricing, the unit rate you pay for electricity directly correlates with the demand on the National Grid and the cost of generation. Periods of low demand, often overnight or during sunny, windy conditions when renewable generation is high, typically see lower prices. Conversely, peak periods, such as weekday evenings when most people are cooking, watching TV, or charging devices, incur higher rates. This structure encourages consumers to adjust their consumption habits, benefiting both their wallets and the wider energy system. ### How they differ from standard tariffs Standard tariffs typically charge a single, flat rate for electricity regardless of when it is used, along with a daily standing charge. This means the price per kilowatt-hour (kWh) remains constant whether you are running your washing machine at 3pm or 3am. Time of Use tariffs, however, introduce different unit rates for specific time windows - a lower off-peak rate and a higher peak rate for electricity consumption. This fundamental difference means that with a ToU tariff, your electricity bill is not just about *how much* energy you use, but also *when* you use it. ## How Time of Use tariffs work To make the most of a Time of Use tariff, it is crucial to understand its mechanics, particularly the timing of peak and off-peak rates and the role of smart metering. ### Peak and off-peak periods Every Time of Use tariff defines specific peak and off-peak windows. Off-peak periods are when electricity is cheapest, typically during times of lower demand, such as overnight or in the middle of the day. Peak periods are when electricity is most expensive, usually coinciding with high demand, like early mornings and late afternoons/evenings. These windows vary between tariffs and suppliers, so knowing the exact timings for your specific tariff is essential to avoid unintentionally consuming energy during expensive periods. ### The essential role of smart meters Eligibility for dual-rate variable tariffs, a common type of Time of Use tariff, generally requires either a smart meter or a multi-register (dual-rate) meter. Smart meters are crucial because they automatically record your electricity consumption at different times of the day and send these readings to your supplier. This allows your energy provider to accurately bill you based on your usage during peak and off-peak periods. The ongoing industry-wide smart meter rollout programme is integral to the widespread adoption and effectiveness of Time of Use tariffs, making them accessible to more households across the UK. > **What is a dual-rate variable tariff?** > > A dual-rate variable tariff is a type of Time of Use tariff that features distinct peak and off-peak electricity rates, which can change quarterly. It requires a smart meter or a multi-register meter to record consumption at different times, allowing customers to save money by shifting energy-intensive activities to cheaper off-peak periods. ### Calculating your potential savings Your potential savings with a Time of Use tariff depend on your ability to shift a significant portion of your electricity usage to off-peak hours. Variable tariffs, including dual-rate variable tariffs, can have their unit rates and standing charges updated quarterly on 1 January, 1 April, 1 July, and 1 October. This means the rates you pay can change, but the principle of cheaper off-peak electricity remains. The average UK home uses around 2,500 kWh of electricity per year, according to Ofgem, so even small shifts in high-consumption activities can add up to noticeable savings over time. ## Benefits of Time of Use tariffs Beyond potential cost savings, Time of Use tariffs offer several advantages for households and the broader energy system. ### Reducing your energy bills The most direct benefit of a Time of Use tariff is the opportunity to reduce your energy bills. By strategically scheduling energy-intensive tasks - such as running your washing machine, dishwasher, or charging an electric vehicle - during off-peak hours, you pay significantly less for the electricity consumed. This direct financial incentive empowers you to make conscious choices about your energy use, leading to lower monthly outgoings. ### Gaining control over your energy usage Time of Use tariffs put you in the driver's seat of your energy consumption. Instead of passively accepting a flat rate, you actively manage when and how you use electricity. This sense of control can be empowering, transforming energy from a fixed cost into a flexible expense that you can influence. Fuse's dual-rate variable tariffs empower customers to take control of their energy usage and costs, aligning with a future of energy abundance. Fuse's app provides transparency and control, helping customers monitor usage and maximise savings on Time of Use tariffs. ### Supporting a more efficient grid When many households shift their electricity consumption to off-peak times, it helps to balance demand across the National Grid. This reduces strain during peak hours, making the grid more efficient and reliable. It also supports the integration of renewable energy sources, as excess generation from wind and solar farms during low-demand periods can be more effectively utilised. By participating in a ToU tariff, you are not just saving money; you are contributing to a smarter, greener, and more stable energy system. ## Who can benefit most from Time of Use tariffs? While many households can benefit, certain lifestyles and home setups are particularly well-suited to maximising savings with Time of Use tariffs. ### Electric vehicle owners Electric vehicle (EV) owners are prime candidates for Time of Use tariffs. Charging an EV can significantly increase household electricity consumption. By scheduling charging sessions during off-peak hours, when electricity is cheapest, EV owners can drastically reduce their running costs. While Fuse no longer offers a specific 'EV tariff' from 1 July 2026, its dual-rate variable tariffs provide similar benefits for optimising EV charging, allowing you to power your vehicle for less. ### Homes with smart appliances and batteries Households equipped with smart appliances (like smart washing machines, dishwashers, or immersion heaters) or home battery storage systems can automate their energy shifting. Smart appliances can be programmed to run automatically during off-peak hours, while home batteries can store cheaper off-peak electricity to be used during more expensive peak times. This automation makes optimising a ToU tariff effortless, ensuring consistent savings without constant manual intervention. ### Solar panel owners For homes with solar panels, Time of Use tariffs can complement their renewable energy generation. During the day, solar panels generate electricity, reducing reliance on grid power. However, any excess solar energy can be exported to the grid, and a Time of Use tariff can help manage when you draw from the grid. If you have a home battery, you can charge it with surplus solar power or with cheap off-peak electricity, further enhancing your energy independence and savings. ## Getting started with a Time of Use tariff Switching to a Time of Use tariff involves a few straightforward steps to ensure it is the right fit for your home and lifestyle. ### Checking your meter compatibility The first step is to confirm your property has a compatible meter. You will generally need a smart meter or a multi-register meter capable of recording your electricity consumption at different times. If you do not have one, many suppliers offer free smart meter upgrades. This upgrade is crucial for accessing most Time of Use tariffs and accurately tracking your usage. ### Finding the right tariff for your home Once you have confirmed meter compatibility, analyse your household's typical daily and weekly energy consumption patterns. Consider when you use the most electricity and how feasible it is to shift major activities to off-peak periods. Then, research and compare available Time of Use tariffs from different energy suppliers. Look closely at the peak and off-peak rates, the duration of these periods, and any standing charges. ### Making the switch After evaluating your options, choose a Time of Use tariff that best aligns with your lifestyle and potential for savings. The process typically involves contacting your chosen supplier, who will guide you through the switch. Fuse offers 24/7 human customer support to assist customers in understanding and optimising their Time of Use tariff benefits, ensuring a smooth transition and ongoing support for managing your energy usage effectively. Ready to take control of your energy bills? Fuse Energy offers straightforward dual-rate variable tariffs designed to help you make the most of off-peak electricity. With clear pricing, real-time usage data in the app, and 24/7 human customer support, managing your energy has never been easier. Switching to Fuse is quick and simple. Click [here](https://www.fuseenergy.com/app/boarding/premises) to switch to Fuse Energy today and start optimising your energy usage. You can also learn more about our mission to make energy abundant by clicking [here](https://www.fuseenergy.com/mission). --- Rates, availability, and regional off-peak windows change. Check the source page for current terms. **Disclaimer** For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.