UK households are being advised to avoid using their oven after 4pm if they’re on a specific type of tariff, as it could be costing them a significant amount. The CEO of an energy company has suggested that by being mindful of when certain appliances are switched on or off, homes across the nation could drastically reduce their bills.
While this won’t apply to everyone, dynamic pricing tariffs like Octopus Energy’s Agile Tariff are gaining popularity. These tariffs automatically fluctuate based on usage patterns.
If you can shift much of your high energy consumption to lower-priced times of day on these tariffs, you could make substantial savings. This is essentially how companies can ‘nudge’ customers into reducing usage during peak times, thus lowering the demand on the grid, and encouraging more electricity use when supply is low.
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Distributing demand in this manner aids in the smooth operation of the grid and prevents issues such as wasted energy production from wind or solar when usage is low. “What we are seeing now is not sustainable,” warns Llewellyn Kinch, CEO and co-founder of Make My House Green.
He further added: “Those of us in the energy industry have to do what we can to help the public adopt new techniques, such as this one, to save money – and the environment.”
Kinch explains that understanding your utility company’s time-of-use (TOU) tariffs and their off-peak hours can significantly cut your energy bills, reports the Express.
For instance, a number of utilities designate 9pm to 7am as off-peak hours, yet others have midday low-demand periods from 10am to 2pm or weekends when energy consumption is reduced. Some even offer several off-peak windows, such as before 4pm and after 9pm on weekdays.
To maximise savings, it’s crucial to verify your particular service provider’s timetable. Kinch remarked: “This information can typically be found on your monthly bill or the utility’s website, where they outline cheaper nighttime usage rates.
“Once you’ve identified these lower-cost periods, you can adjust your energy usage habits to take advantage of them.”
If your tariff gets pricier post-4pm, then things like using your oven – one of the household’s most power-hungry appliances, usually consuming 1000 to 2000W – should ideally be done before this hour whenever possible.
Do note that dynamic time-based pricing changes won’t apply if you’re not on an agile tariff, such as Economy 7; so it’s best to confirm with your provider to understand your tariff and how it operates.