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Time-of-use tariffs explained

A time-of-use (TOU) tariff charges different rates at different times of day. Understanding the peak and off-peak windows is the key to cutting your bill.

4 min read · Updated 2026-07

What a time-of-use tariff is

A time-of-use tariff sets electricity prices by time period rather than a single flat rate. The simplest form has two blocks — peak (day) and off-peak (night). More advanced versions have several bands, or follow the wholesale market every half-hour.

The main types

Day/night (two-rate): a cheaper overnight rate and a higher daytime rate — the classic Economy 7 model.

EV tariffs: a very low, short overnight window aimed at car charging, with a standard rate the rest of the day.

Dynamic / half-hourly: the price tracks the wholesale market for every settlement period, so the cheapest hours move day to day.

Pros and cons

The upside is clear: if you can shift flexible load into the off-peak window you pay far less for it. The downside is that using power during peak periods costs more, and remembering to run appliances at the right time is a chore.

That is why time-of-use tariffs pair naturally with automation — the savings depend entirely on when your flexible loads run.

Getting the most from a TOU tariff

FYXO reads your tariff’s rate structure and schedules EV charging, hot water, batteries and appliances into the cheapest bands automatically. You keep control of comfort and deadlines; FYXO handles the timing.

FAQ

Is a time-of-use tariff worth it?
It is worth it if you have flexible loads — an EV, battery, hot water or heating — that you can move into the off-peak window. Automation makes that effortless.
What is the difference between TOU and a dynamic tariff?
A dynamic tariff is a type of time-of-use tariff where the price follows the wholesale market every half-hour, rather than sitting in fixed day/night blocks.
See also

Put it into practice

FYXO shifts your EV, battery and heating to the cheapest hours automatically. Free to start, 3-minute setup, no hardware.

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Keep reading
What is a dynamic electricity tariff?
A dynamic electricity tariff prices your energy by the hour (or half-hour) based on the wholesale market, so power is much cheaper at some times than others.
How much can you save by charging your EV off-peak?
Charging an EV in off-peak hours instead of at peak can cut the cost of each charge by well over half on the right tariff — typically 20–40% of your charging bill when automated.
How to optimise a home battery on a time-of-use tariff
A home battery pays for itself faster when you charge it in the cheapest hours and use that stored energy during expensive peaks — automatically.