But peak hours are a bad time to do tasks that can wait. If you're running large appliances, whether it's your dishwasher or washing machine, it's going to cost you extra during peak hours. Conversely to peak hours, off-peak hours are the times when electricity prices are cheaper. This is typically the case because there are fewer people trying to access the grid during these hours, meaning there is less overall demand and you won't have to pay a premium for each kWh that you use.
Off-peak hours are a great time to do those more energy-intensive tasks that you may have waiting for you. While it might not be the most convenient, if you happen to be home during off-peak hours, you can save yourself money on your monthly electricity bill by timing your tasks to these time frames. Utility companies know when stress on the grid is going to be at its highest.
In order to make sure the grid can serve all of these customers, they need to make sure that power plants are operational and meeting all of the demand. When demand increases, these companies may have to generate more electricity, which can cost more. They either need to generate that power in advance to meet the peak or purchase extra energy from other sources.
That additional expense is passed on to the consumer through time-of-use rates, which charge you more when you use electricity during peak hours. Peak hours vary depending on the time of year and region of the country.
As a general rule, think of peak hours as the time during which most people are getting home from work for the day. This is when people are turning on their lights, firing up their TVs and settling into their home for the night — all of which requires more electricity than usual. Everything you need to know to get up and running. What to expect, how to shop, how to get the best savings and more. Discover what makes up your power price, how to work out your rates and understand your tariff.
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