Key facts
- UK households can reduce energy bills by using appliances during off-peak hours, such as late-night World Cup matches.
- E.ON Next's Next Smart Saver tariff offers rates as low as 13p/kWh during super off-peak hours (2am-5am).
- Shifting five typical daily activities from peak to off-peak could save households up to £230 annually.
- EDF's FreePhase tariff saved customers an average of £152 in the first five months of the year.
- Time-of-use tariffs require smart meters and flexibility in energy usage for maximum savings.
- The average household energy bill is set to rise to £1,862 annually from July.
UK households can potentially lower their energy bills by strategically using appliances during off-peak hours, a practice highlighted by the late-night schedules of the men's football World Cup. Research from E.ON Next indicates that shifting activities like running a washing machine to the cheapest electricity rates, such as those available during super off-peak times (2am-5am) on its Next Smart Saver deal, can lead to significant savings.
On the Next Smart Saver tariff, electricity costs 13p per kilowatt hour during super off-peak hours, a stark contrast to the 39p/kWh during peak times (4pm-7pm). Experts suggest that by moving typical household activities, including laundry, ironing, and using a tumble dryer, from peak to off-peak periods, consumers could save up to £230 annually compared to the government's energy price cap. Running a washing machine, which accounts for about 14% of a household's energy bill, during these cheaper times could contribute to substantial national savings.
EDF offers a similar dynamic tariff called FreePhase, which informs customers of the next day's prices, enabling them to shift electricity usage accordingly. EDF reports that this tariff saved customers an average of £152 over the first five months of the year. This renewed focus on energy costs comes as the average annual energy bill is set to increase to £1,862 from July.
However, experts caution that time-of-use tariffs are not suitable for everyone. Joanna O’Loan from the Energy Saving Trust notes that these tariffs are most beneficial for those with electric vehicles, storage heaters, heat pumps, or smart appliances. Without the flexibility to shift usage, savings might be minimal or even negative. Currently, only an estimated 2-3% of households are on such tariffs, with many using older Economy 7 off-peak deals that are less flexible. To benefit from newer smart time-of-use tariffs, a smart meter is essential. Ben Gallizzi from Uswitch advises consumers to be mindful of the higher peak rates while highlighting potential savings for those who can schedule appliance use, such as charging electric vehicles or running washing machines and dishwashers overnight.