Time-of-use tariff
An electricity tariff whose price per kWh changes with the time of day or week, either in fixed bands set in advance or, in a dynamic tariff, at short intervals with the wholesale market.
Photo: Simon Kadula / Unsplash
The price per kWh is higher when electricity costs more to supply. In Italy ARERA defines three bands: F1 from 8:00 to 19:00 on weekdays, F2 in the early morning and evening of weekdays and from 7:00 to 23:00 on Saturday, F3 at night, on Sundays and on national holidays. In Spain the network charges of households and small businesses connected at low voltage with up to 15 kW are split into three periods, peak, standard and off-peak. In Great Britain, Economy 7 has a peak and an off-peak rate.
A dynamic tariff follows the wholesale price. Under the EU electricity directive, a customer with a smart meter can ask for one from at least one supplier and from every supplier with more than 200,000 customers; in Germany, since 1 January 2025, from every supplier.
To choose between a fixed and a variable price and compare two offers on their full yearly cost, see Fixed or variable energy price.
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