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Off-Peak Electricity Rates Explained: Save More When You Use Les

December 29, 2020
by dmirza
off-peak electricity in night skyline

As a Texas energy consumer, you can choose from the various electricity plans from established providers. From postpaid, prepaid, free electricity plans, and more, there are many types available.

If reducing the monthly bills is on your mind, consider signing up for time-of-use electricity plans for your home. TOU energy plans are different from standard ones that come with the same electricity rates throughout the day.

Usually, residential energy demand is less during the night, and hence, the off-peak electricity rates are lower.

Why Do TOU Plans Have Lower Electric Rates?

While electricity rates vary from supplier to supplier, TOU rates help curb demand.

Utility companies have a good understanding of how much power their customers will consume at all times. Known as baseload power, this f electricity generation is cheap as power plants operate continuously to ensure high efficiency.

But when electricity demand fluctuates due to seasonal variations and other factors, the kWh cost of energy changes.

During electricity peak hours, utilities have to provide additional energy at short notice – sometimes even five minutes ahead. So, when customers choose flat-rate plans, companies have to supply electricity at a loss.

Time-of-use plans act as a win-win situation for customers and providers.

Off-Peak Hours Explained

Generally, peak hours are those times of the day when electricity demand is the highest. This duration varies with seasons, location, and the energy requirements of a household. Hence, electricity prices are also the highest.

Off-peak hours are when the demand is the lowest, and partial-peak is the interval between these two. The electricity rates are the lowest and medium, respectively.

In Texas, peak demand occurs in the busiest times, from 1 p.m. to 7 p.m. Partial peak hours are from 10 a.m. to 1 p.m. and again between 7 and 9 p.m. Enjoy off-peak electricity rates, the lowest, the rest of the time.

Saving Money with Off-Peak Electricity Rates

Unplug the electronics. Even if you have switched off your electronics, they can drain power when plugged in. This vampire energy loss will cost you around 20% of your bills. Some things to remember to unplug are chargers, hairdryers, televisions, printers, and toasters.

Program Your Thermostat. Get a smart thermostat and program your preferred temperature settings for each room. It can go up or down automatically depending on the external weather. You can even set it to drop a few degrees in the night or turn off when no one is home.

Get free electricity. Some TOU plans come with off-peak electricity rates and offer free power supply during specific periods. For instance, if you choose free nights and weekends electricity plans, switch power-consuming chores like doing the laundry or cleaning dirty dishes at night or on the weekends for no cost.

Explore the energy plans to see other ways to decrease bills even in electricity peak hours.

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