Electricity retailers put every customer on one of two pricing structures: a flat rate that charges the same price no matter when you use power, or time-of-use (TOU) pricing that charges different rates depending on the time of day. Which one you're on can matter more than which retailer you're with — and as smart meters roll out to every Australian home by December 2030, TOU is quickly becoming the default rather than the exception.
Here's what the two structures actually mean, how to check which one applies to you, and how to work out which suits your household.
The difference, in plain terms
A flat-rate (or "single rate") plan charges one price per kilowatt-hour, all day, every day. Running the dishwasher at 9am costs exactly the same as running it at 9pm.
A time-of-use plan splits the day into pricing windows — usually peak, shoulder and off-peak — and charges a different rate for each:
| Window | Typical timing | Price |
|---|---|---|
| Peak | Weekday afternoons/evenings (commonly 2pm–8pm or 4pm–9pm, varies by network) | Highest |
| Shoulder | Daytime outside peak, and weekends | Middle |
| Off-peak | Overnight (commonly 10pm–7am) | Lowest |
Exact windows and prices vary by network area and retailer, so check your own plan rather than assuming — but the shape is consistent: you pay more when everyone else is drawing power (typically the early evening), and less when demand is low.
How to tell which one you're on
Look at your latest bill. A flat-rate bill shows a single c/kWh usage rate. A TOU bill shows two or three usage rates labelled peak, shoulder and off-peak (sometimes "peak" and "off-peak" only). You can also ask your retailer directly, or check your online account.
One rule of thumb: TOU pricing requires a smart meter. If you don't have one yet, you're almost certainly on a flat rate by default. That's changing — the Australian Energy Market Commission has mandated smart meters for every home by 1 December 2030, and retailers can no longer let you opt out once they contact you about installing one. Victoria is already close to universal smart meter coverage; other states are catching up on a rolling basis through the rest of the decade.
Who flat rate suits
- Households without a smart meter — TOU isn't available to you yet regardless of preference.
- Predictable, evening-heavy usage that can't easily move — cooking dinner, running the heater or aircon at peak times, and no ability to shift those habits.
- Anyone who values simplicity over squeezing out the lowest possible bill — one rate is easier to budget against and impossible to get wrong by using power "at the wrong time."
Queensland and South Australia go further: retailers there must offer smart-meter customers the option of a flat-rate plan, not just TOU, so having a smart meter doesn't force you onto time-of-use pricing in those states.
Who time-of-use suits
- Households that can shift load — running the washing machine, dishwasher or pool pump overnight or in the middle of the day instead of the evening peak.
- EV owners charging overnight, when off-peak TOU rates are typically at their lowest.
- Solar Sharer Offer households in NSW, South East Queensland and South Australia — that scheme is opt-in on top of a TOU-style plan and passes on a window of free midday power, but it only makes sense if you can also handle the higher rates it charges at other times. See our Solar Sharer Offer explainer for the detail.
- Anyone who's price-driven and willing to actively manage when appliances run in exchange for a potentially lower bill.
The July 2026 price reset made the gap more visible: standing time-of-use offers fell in every state — including South Australia, where flat-rate standing offers were the only ones to rise. That doesn't mean TOU is automatically cheaper for you specifically; it depends entirely on when you actually use power.
How to decide
Pull up 2–3 recent bills or your retailer's app and look at when your usage actually happens. If most of it clusters in the 4pm–9pm window and you can't realistically change that, flat rate protects you from paying peak prices for habits you're not going to shift. If a meaningful share of your usage happens overnight, midday, or on weekends — or could with small changes like a timer on the pool pump — TOU has genuine room to save you money. When in doubt, ask your retailer or a comparison service to model both structures against your actual usage pattern rather than guessing.
Frequently asked questions
Do I get a choice between flat rate and time-of-use?
In most states, yes, though options depend on your retailer and whether you have a smart meter. Queensland and South Australia specifically require retailers to offer smart-meter customers a flat-rate option. Ask your retailer what's available before assuming you're stuck with what you've got.
Will everyone end up on time-of-use pricing eventually?
Everyone will have a smart meter by December 2030, which makes TOU pricing possible — but having a smart meter doesn't automatically put you on a TOU tariff, and in QLD and SA a flat-rate option must still be offered.
Is time-of-use always cheaper?
No. It's cheaper only if a meaningful share of your usage happens outside the peak window. Households with concentrated evening usage can end up paying more on TOU than they would on a flat rate.
Do comparison sites show every plan on the market?
No — no comparison service covers every retailer. Ours compares plans from 15+ participating retailers. For a full list of every offer in your area, the government's free Energy Made Easy site (or Victorian Energy Compare in VIC) shows all of them, though without the guided switching.
Last updated: July 2026. Prices and regulations change — always confirm details with the retailer before signing up.