Optimising your electricity usage
Looking for practical ways to optimise your electricity usage? You’ve come to the right place.

What is within your control to influence?

Looking at your electricity bill and knowing how to read it is the first step. Next is knowing how to effectively influence the price you are paying. The simplest way to do this is to change how and when you are using electricity. The below diagram shows the average breakdown of household energy use. How do you think you line up? Are there areas you could look to optimise your electricity usage?

Average Household energy use 

 

What are some simple ways to use electricity mindfully?

Small changes in your daily routine can reduce energy wastage, lower consumption and contribute to a more sustainable future. It all adds up!

Turn off lights when not in use
Use fans instead of air conditioning when possible
Set air conditioning to an energy-efficient temperature
Maximise natural light during the day
Unplug chargers when devices are fully charged
Wash clothes in cold water
Seal gaps so heating or cooling isn’t escaping.
Choose energy efficient appliances

Did you know?

Appliances still use electricity when on standby. According to Choice, standby power can account for more than 10% of your household electricity use!

Saving money through energy efficient appliances

Energy efficient appliances use less energy to do the same task. This is often the case in newer appliances versus older appliances.

Energy rating

Energy Rating LabelThe easiest way to compare the energy efficiency of different products is to read the energy star rating on most modern appliances. The Energy Rating Label, regulated by the Australian government, has been around for over 30 years.

The more stars shown on the Energy Rating Label, the less energy the product will use and the more money you will save on your energy bills.

The label will also show you the annual energy consumption for your appliance, based on standardised testing. The lower the number, the more energy efficient the appliance is.

If you are thinking about purchasing energy efficient appliances, you may be able to save money by taking advantage of government schemes.

Peak demand reduction scheme

The peak demand reduction scheme was introduced by the NSW government in 2022. It aims to reduce the amount of electricity used between 2:30pm and 8:30pm (AEDT) in the months of November to March. Decreasing electricity usage during these high demand times will help reduce future electricity costs and lower risks of power outages in NSW.

The scheme provides financial incentives such as discounts to households and businesses who install eligible energy efficient appliances or replace old systems.

You can find out more about the peak demand reduction scheme and eligibility criteria on the Energy NSW website.

Did you know?

Many dishwashers and washing machines include an ‘eco-mode’ setting that will run quicker cycle times or at lower temperatures that use less energy. Source: Choice.com.au.

Saving money through off-peak use

You’ve come home from work, the dishes are in the wash and your laundry is under way, you finally have a chance to relax in front of the television. It’s something many of us like to do at night. But with more use comes greater pressure on our energy network, and we call this a peak period.

To relieve that pressure, energy providers introduced off-peak periods, rewarding people for using their energy at times when demand for electricity is low. Customers with a smart meter can take advantage of these lower off-peak prices if they are on a time of use pricing plan. For example, by timing your appliances to begin later at night you can reduce pressure on the network and save money on your next energy bill.

Your time of use peak and off-peak periods may differ depending on your retailer.

Examples of potential cost savings by switching to a TOU plan are provided below (pricing based on AGL’s 2025 standing offer (including GST)).

Ausgrid’s residential peak and off-peak periods (effective since 1 July, 2024)

Ausgrid provides its network prices to electricity retailers who can then choose how they pass on these network charges, taking into account their own pricing strategies and priorities. Your time of use periods may differ depending on your retailer.

Peak and Off Peak

Switching to a time-of-use plan

One of the biggest impacts you have on your energy bill is having a time-of-use plan alongside mindful usage.

Example pricing based on AGL’s standing offer (including GST).

Reducing costs by switching

Consider the scenario of a customer moving from their current flat-rate to a time-of-use plan. They could be paying less while using the same amount of electricity simply by the time-of-use plan fitting their lifestyle and usage more.

Flat Rate        252kWh $0.40c/kWh  $100.80
                       
Time of use 252kWh    
Peak 70 kWh $0.65 c/kWh  $45.5
Off-peak 182 kWh $0.30 c/kWh  $54.6
 

Ausgrid total monthly saving: $0.70

Reducing costs by switching and changing usage times

Consider the scenario of a customer moving from their current flat-rate to a time-of-use plan. They could be paying less while using the same amount of electricity simply by taking advantage of Off-Peak times with their new plan.

Flat Rate        252kWh $0.40c/kWh  $100.80
                       
Time of use   252kWh    
Peak 59 kWh $0.65 c/kWh  $38.35
Off-peak 193 kWh $0.30 c/kWh  $57.90
 

Ausgrid total monthly saving: $4.55

Start the conversation with your retailer today

Your retailer will be able to help guide you on what the best plan for you and your usage will be. Check out our page 'Engaging with your electricity retailer' for some helpful tips on where to start.

Frequently Asked Questions

Additional resources

If you are looking for some extra information about energy, check out these resources.