Flexible pricing15 July 2013
From mid-September this year, Victorian households and small businesses with a remotely-read Smart Meter will be able to choose new flexible pricing options offered by electricity retailers.
So what does flexible pricing actually mean?
Flexible pricing plans mean that electricity customers will be charged different rates for electricity throughout the day:
- Off-peak: This is the time when the price of electricity is lowest, when the demand for electricity is the lowest.
- Peak: This is the time when electricity the electricity price is higher, typically on weekday afternoons and evenings when the demand for electricity is at its highest.
- Shoulder: During this time, the price is lower than the peak rate but higher than the off-peak rate as there is a reduced demand for electricity.
This will mean that if you can switch the time that you use your ‘power-hungry’ appliances like dishwashers, washing machines and dryers to off-peak times, you can save on your electricity bill.
Remember that the times, as well as the rates, will change from retailer to retailer, so don't forget to do your homework to work out whether switching to a flexible pricing plan is right for you. You can always stay on a flat rate if this suits you better.
For more information about flexible pricing and whether a flat or flexible pricing plan is better for you, visit switchon.vic.gov.au