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small independent energy firm has launched the UK’s first variable electricity tariff, promising households significantly lower bills if they avoid using power at peak hours and run their appliances overnight.
For years energy experts have suggested that smart tariffs, which price electricity according to the time of day, are the future, as they could help smooth out the peaks in demand currently faced by the National Grid. This week, Hertfordshire-based Green Energy UK launched its Tide tariff which offers exactly that. Initially only available to households in England, the Tide dual-fuel tariff offers three different prices of electricity depending on the time of day.
Most standard households pay the same for their electricity whether they use it at 3am or 6pm – around 10p-14p per kWh. But if the price for electricity was just 5p at night but 25p during the peak hours of 4pm-7pm, would you change your behaviour? Tide will charge users 4.99p per kWh from 11pm-6am, 11.99p from 6am-4pm, 24.99p from 4pm-7pm, and 11.99p from 7pm-11pm.
So-called “time-of-use” tariffs are expected to become widespread as households are fitted with smart meters, which for the first time allow power companies to bill customers at different rates depending on the time of day.