What is peak time, off-peak time and shoulder?
You may well have noticed on your bill reference to peak, off-peak and shoulder charges.
The meaning of these vary according to the kind of tariff you’re on. This information can be found in the contract you received when you signed up to your natural gas or electricity plan.
If you’re on a time of use tariff, your electricity charges are different depending on the time of day, and your usage charges will show different amounts against peak, off-peak and shoulder times.
- Peak time is when most households are using energy and there is a high demand on the grid. Using energy during this time will mean you’ll be charged higher rates than in off-peak or shoulder periods.
- Off-peak time is the time of day when fewer people are using energy and there is less demand on the power grid. During this time, you can use energy at reduced rates.
- Shoulder time is the period between peak and off-peak where there is a normal demand on the power grid and your rates will sit somewhere in the middle.