Is Electricity Cheaper Overnight? The Truth Behind the Myth
We’ve all heard the advice that electricity is cheaper to use overnight, but is it really true? The Money team decided to investigate this popular belief and enlisted the help of Roy Bedlow, CEO and Founder of Low Carbon and Trust Power.
According to Roy, electricity costs and environmental impact fluctuate throughout the day, depending on demand and the sources generating it. Peak hours, usually early morning and evening, see increased demand leading to higher costs, sometimes reaching as high as 13p per kWh.
However, at night when demand drops, prices can fall to around 6.9p per kWh. While this may seem like a significant difference, most households on standard variable tariffs pay the same rate for each unit of electricity set by the energy price cap.
But, for those on tariffs like Octopus Tracker and Agile Tracker, which adjust prices daily or every 30 minutes in line with wholesale prices, there is a potential for savings during low-price periods. Roy suggests considering a Time of Use tariff if you want to capitalize more on lower-cost, off-peak power.
For example, using off-peak hours to charge an electric vehicle on a Time of Use tariff could save you a significant amount compared to charging at peak times. Not only does this save money, but it also has environmental benefits as the carbon intensity of electricity is lower during off-peak times.
In conclusion, understanding and adapting to the variations in electricity costs and environmental impact can lead to financial savings and reduced environmental impact. So, the belief that electricity is cheaper overnight is indeed a money must.