Electricity tariffs explained

Tariffs can be tricky to understand, especially as there is more than one type to get your head around. We’ve created a quick guide that answers some of the most common questions. 

What is a tariff?

A tariff is the price you pay for the energy you consume. Tariffs will vary depending on where you live, your energy distributor^, the type of meter you have and the type of tariff itself.  

There are four main tariff types for electricity: 

1. Single rate tariff

Single-rate tariffs have no peak or off-peak periods. You’ll pay the same rate no matter what time of day your household consumes energy.

If you’re home most in the evenings (peak) and use your appliances mainly during this period, a single rate tariff could be a good option for you.

Single-rate tariffs can also be known as flat rates or standard rates. 

2. Time of use tariffs

A time-of-use tariff means that the rate you pay differs depending on the time of day the energy is used. These times include:

• Peak

  Peak rates generally apply during periods of higher electricity demand, often in the late afternoon and evening. The specific days and times depend on your plan. Peak rates are typically higher than shoulder or off-peak rates, but in some cases may be the same.

• Shoulder

  Shoulder rates apply at certain times between peak and off-peak periods. Depending on your plan, shoulder rates may be priced between peak and off peak rates, or in some cases may be the same as either.

• Off-peak

  Off-peak rates apply outside the time of use periods listed above, often during periods of lower electricity demand such as overnight. Depending on your plan, off peak rates may be priced lower than peak rates or may sometimes be the same.

A time-of-use tariff is common if you have a fully communicating smart meter installed at your premises and can be used with additional services like solar panels and a battery. 

Actual charges depend on your electricity plan, tariff, and distribution network. Please refer to your rates table for the prices that apply to you.

3. Controlled load tariffs

A controlled load tariff is a specific type of electricity rate or rate structure that applies to some fixed high energy use appliances such as an electric hot water heater, pool pump, or underfloor heating.

These appliances can be added to a controlled load circuit, which is separated from your standard household circuit. They can be ‘powered up’ at different times of the day when there is an abundance of renewable energy being generated across the electricity network which also helps to ease pressure on the grid during peak usage times.

With a controlled load tariff, you may have the flexibility to boost your electricity outside of controlled load time periods should you need to (noting that pushing the boost button on your meter may increase electricity charges on your controlled load circuit).

Learn more about controlled load tariffs here.

4. Demand tariffs

Demand tariffs have been designed by energy distributors^ to encourage households and businesses to use less electricity during peak demand times when there is more pressure on the electricity grid. This means that your bill charges are influenced by how much energy you use overall and by the highest power ‘demand’ you put on the electricity network.  

Your demand will increase if you turn on several power-hungry devices within 30 minutes during peak time. And if you’re on a demand tariff energy plan, so will your charges.

Learn more about demand tariffs here.

Solar feed-in tariffs

The tariffs mentioned above are consumption (energy used) tariffs and will differ from solar (generation) tariffs.  

You can read more about our solar FiTs and rates here. 

Choosing the right tariff

Your energy distributor will initially set your tariff.^ Choosing the right tariff could help reduce what you pay for your energy; however, this will depend on your current circumstances and the type of meter you have:

• Basic meter
• Standard peak tariff will apply.
• Digital meter (non-communicating smart meter).
• You may be eligible for a peak and off-peak tariff. If you also need a controlled load, this will generally be a separate meter within your meter box.  
• Smart meter (fully communicating)  
• You may be eligible for peak, off-peak and controlled load tariffs. All are charged separately based on the time used or as a single time-of-use tariff, which is more common and reflects the actual time you have used the energy and applicable tariff charge for the period.  

Your tariff may change if you upgrade your meter, move your existing meter, install solar panels or add an appliance that needs its controlled load tariff, such as a pool pump or underfloor heating. 

You can read more on the different types of meters in our here.

Looking for further information?

ENGIE’s Help Centre may have the answers. Here are some quick links to popular questions. 

• Search your current rates  (by postcode and energy plan)
• Moving, connections and metering 
• Solar made simple 
• How to read my bill 
• Managing your account and energy plan 

^If you don’t know who your energy distributor is, check the Get in Touch section in the top right-hand corner of page 1 of your ENGIE bill.