South Australia electricity prices fall below 20c kWh

For a long time, South Australians have paid the highest electricity rates in Australia, with ‘one-size-fits-all’ flat/anytime tariffs costing 30-40 cents per kWh. Now, South Australians can dramatically reduce their electricity bills just by switching to a new tariff type.

Here’s your guide to the Time of Use tariff set to save savvy South Australians on their energy bills.

Time of Use tariffs explained

Time Of Use (also known as Flexible or ToU) tariffs have different prices for electricity at set periods of the day. When demand is low in Off-Peak periods the cost of electricity is cheapest. During the Peak period, when demand is high, electricity costs more. A new Time Of Use tariff known as RELE or “Electrify” is now available in SA with three periods that apply everyday, during the following hours:

Off-Peak = 10am – 4pm
Shoulder = 1am – 6am
Peak = 6am – 10am and 3pm – 1am

Why Time of Use is a good thing

The good news is that SA electricity plans with the new TOU tariffs offer a Peak rate from as little as 29 cents a kWh. The Peak rate is less than the anytime rate on the best publicly-listed plans from any of the big three retailers (AGL, Origin or EnergyAustralia). Use electricity on a Time of Use plan during Off-peak periods, and you can pay as little as 15 cents a kWh. That’s half the rate of most anytime plans! At Shoulder times, costs start from 19 cents a kWh. So it doesn’t take a whole lot of calculation to figure out that a Time of Use plan will help many households cut energy costs. I’ll also break down how solar homes could benefit too.

The reasons why SA electricity is getting finally cheaper

Up till now, the SA Power network only offered a flat rate tariff, charging a whopping 15.1c per kWh to your electricity retailer for every kWh you consume – the highest anytime network charge in Australia. Solar and non-solar homes can now buy more affordable power, particularly in the middle of the day for two reasons. The first and most significant factor has been the introduction of SA Power’s “solar sponge” residential Time Of Use (TOU) network tariff. The new off-peak network charge to your retailer, is a very low 3.8c per kWh between 10am and 4pm every day. It’s cheap to encourage households to use more energy and soak up the abundant solar energy in the grid. The second factor driving retail price cuts in South Australia is the reduction in wholesale prices. Future wholesale prices have fallen particularly during daytime hours when there is often an excess of generation, thanks to plentiful solar energy. Renewables have pushed wholesale prices down and forced the network to introduce the new “solar sponge” tariff, benefiting everyone.

Who is offering the best Time Of Use tariffs in SA?

The table below shows the retailers currently offering the Time of Use tariff and a summary of the lowest cost plan they offer based on a non-solar household using 4,000kWh of electricity per year.

Cheapest Time Of Use electricity rates by retailer in South Australia

Cheapest Time Of Use electricity rates in Adelaide by retailer (SA Power network) TOU Periods – RTOU Tariff: Peak = 6am-10am and 3pm-1am, Shoulder = 1am-6am and Off-Peak = 10am-3pm

Customer Code	Network	Retailer	Peak TOU	Shoulder TOU	Off-Peak TOU	Daily Charge^	Supply Charge	Reference Price *	Max. Discount off Reference Price Sort
RES001	SA Power	1st Energy	54.89c	35.20c	29.81c	110.00c	110.00c	1% more than	990
RES001	SA Power	Alinta Energy	54.51c	30.39c	24.99c	101.22c	101.22c	6% less than	1,060
RES001	SA Power	Circular Energy	46.00c	40.00c	27.20c	121.00c	121.00c	7% less than	1,070
RES001	SA Power	CovaU	52.37c	30.96c	25.73c	99.94c	99.94c	6% less than	1,060
RES001	SA Power	Diamond Energy	52.82c	39.62c	28.84c	101.87c	101.87c	6% more than	940
RES001	SA Power	EnergyAustralia	51.15c	30.69c	19.18c	106.80c	106.80c	9% less than	1,090
RES001	SA Power	GloBird Energy	40.97c	28.05c	28.05c	128.04c	128.04c	14% less than	1,140
RES001	SA Power	Kogan Energy	44.00c	17.45c	25.15c	147.00c	147.00c	12% less than	1,120
RES001	SA Power	Lumo Energy	52.47c	29.28c	23.08c	100.96c	100.96c	7% less than	1,070
RES001	SA Power	Momentum Energy	43.34c	30.03c	25.63c	172.48c	172.48c	10% less than	1,100
RES001	SA Power	Nectr	49.28c	36.52c	31.79c	142.01c	142.01c	0% less than	1,000
RES001	SA Power	Origin Energy	52.48c	31.06c	25.83c	99.94c	99.94c	15% less than	1,150
RES001	SA Power	Pacific Blue	47.30c	26.40c	23.10c	101.20c	101.20c	14% less than	1,140
RES001	SA Power	Powershop	44.00c	17.45c	25.15c	147.00c	147.00c	12% less than	1,120
RES001	SA Power	Red Energy	52.47c	29.28c	23.08c	100.96c	100.96c	7% less than	1,070
RES001	SA Power	Tango Energy	48.40c	28.71c	25.85c	101.20c	101.20c	11% less than	1,110
RES001	SA Power	Zen Energy	48.71c	34.38c	28.65c	157.80c	157.80c	1% more than	990
RES001	SA Power	AGL	50.17c	34.39c	29.40c	102.26c	102.26c	15% less than	1,150
RES001	SA Power	Dodo	45.14c	31.42c	26.82c	157.69c	157.69c	7% less than **	1,071
RES001	SA Power	Energy Locals	42.00c	31.00c	27.00c	160.03c	160.03c	10% less than **	1,101
RES001	SA Power	ENGIE	48.71c	33.43c	23.26c	108.69c	108.69c	11% less than **	1,111
RES001	SA Power	OVO Energy	44.33c	27.06c	32.23c	156.20c	156.20c	14% less than **	1,141
RES001	SA Power	Sumo	44.00c	33.00c	30.80c	110.00c	110.00c	12% less than	1,121

TOU Periods – RELE (Electrify) Tariff: Peak = 5pm-9pm, Off-Peak = 10am-4pm, Shoulder = all other times

Customer Code	Network	Retailer	Peak TOU	Shoulder TOU	Off-Peak TOU	Daily Charge^	Reference Price *	Max. Discount off Reference Price Sort
RES001	SA Power	GloBird Energy	86.79c	58.30c	58.30c	143.00c	38% more than	620
RES001	SA Power	Kogan Energy	61.77c	35.34c	37.19c	147.00c	2% less than	1,020
RES001	SA Power	Powershop	61.77c	35.34c	37.19c	147.00c	2% less than	1,020

^ Rates shown include GST and all available discounts. Plans are updated weekly from retailer’s Basic Plan Information Documents (BPIDs)/Energy Price Fact Sheets

How do I get access to lower rates?

To get onto a lower-cost Time of Use (ToU) tariff, you’ll need to have an interval meter installed at your property. The interval meter measures electricity use in half-hour blocks, recording energy used in each TOU period. You can request an interval meter through your current retailer where they support Time Of Use tariffs. If your current retailer doesn’t support time of use tariffs, or you would like to move to a better deal, then you can switch to a retailer offering this tariff. You will need an interval meter which your retailer can arrange. We contacted ReAmped Energy who advised that they will organise an upgrade to an interval meter (if required) at no cost – unless the meter box is seriously old or has issues that prevent an update. You should check with your preferred retailer on whether they charge for meter upgrades.

Time Of Use vs Anytime tariffs compared

As of July 16, 2020, ReAmped Energy offers the lowest-cost plan in the market based on the Default Market Offer usage of 4,000kWh p.a. and TOU split at 23% discount off the reference price. (Note: We have excluded Powerclub from this analysis because Powerclub’s market offers are linked to the wholesale price, so there is no way of knowing in advance what rate you might pay.) TOU plans often provide bigger discounts off the DMO reference price when compared to each retailer’s cheapest flat-rate Anytime plan eg. as of July 16, 2020:

ReAmped Energy: 23% TOU v 14% Anytime
Kogan Energy: 22% TOU v 20% Anytime
Powershop: 21% TOU v 18% Anytime
Simply Energy: 7% TOU v 7% Anytime

Do I need to change when I use energy to be better off?

In short, if you have an average usage profile and choose the right Time Of Use plan, you’ll be better off! Here’s an example using the Default Market Offer usage of 4,000kWh of electricity per year. The Australian Energy Regulator determined that an average non-solar household in South Australia using 4,000kWh would consume:

60.9% in peak period (6am-10am and 4pm-1am)
16.6% in shoulder period (1am-6am)
22.5% in off-peak period (10am-3pm)

At the time of writing the best Time Of Use tariff – ReAmped Energy Classic – has a discount of 23% of the Reference Price (with the 60.9%/16.6%/22.5% split), providing a $420 saving. The best anytime offer – Kogan Energy Market Offer – has a discount of 20% of the Reference Price.

Does the TOU tariff help solar owners?

Many solar owners will already be shifting some of their electricity use to self-consume their own cheap solar. However, there are still several circumstances that can make a Time Of Use tariff a cheaper option for those with solar. Here are two examples:

the 1am-6am shoulder period can be used for winter heating, dishwashers, pool pumps, electric vehicles etc. In effect, the TOU shoulder tariff offers a second low cost window (after 10am-3pm) to provide more access to cheap power.
the 10am-4pm off-peak window can be used to run multiple appliances that would typically exceed the generation capacity of your solar PV system, particularly on cloudy days such as air conditioning in summer, heating in winter, pool pumps, electric vehicle charging etc.

Together the new off-peak and shoulder periods can help enable solar owners to increase their solar-self consumption (between 10am-3pm) without a high penalty when they import from the grid. Plus it offers an opportunity to access lower cost power beyond the hours when they have excess solar.

It gets better. Shift and save more

By shifting energy use (like running laundry appliances or dishwashers, pumps, air conditioners etc) from peak to much cheaper off-peak hours, households can make bigger savings. For example, an average household that shifted their usage to achieve a 40% peak, 30% shoulder and 30% off-peak load split would pay $1320p.a. for their electricity based on the lowest cost plan – ReAmped Energy Classic (getting a 27.9% discount off the reference price $1832p.a.). That’s a $500p.a. saving simply for shopping for the best deal and shifting appliance use to hours when it is cheaper to buy electricity from the grid. For more tips on how to shift loads, see our article on owning solar. Disclaimer: ReAmped Energy is a partner retailer of WATTever. If you switch to ReAmped Energy, we may receive a referral fee.