What is a time-of-use tariff?
An Economy 7 and Economy 10 tariff or time-of-use tariff tariff means you’ll pay two different rates for energy known as, “peak” and “off-peak”. With a time-of-use tariff, your business will benefit from lower business energy rates during the evening and night when there is less demand for energy. Energy prices will increase on the wholesale energy market at peak hours which is simply put down to supply and demand. The unit costs on these tariffs can vary over 24 hours and each day of the week.
To benefit from a time-of-use tariff, you’ll need either a half-hourly meter or a smart meter. Changing your routines and processes to take advantage of off-peak energy prices could help your business save money. Within the guide, we will explain what time-of-use tariffs are as well as the advantages and disadvantages and whether this tariff is suitable for your business.