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How can I switch to a time-of-use energy tariff?
How do I switch to a time-of-use tariff from my current plan?
Start by contacting energy providers offering time-of-use tariffs (like E.ON Next’s Next Smart Saver) to compare pricing structures. You’ll need a smart meter installed if you don’t already have one. Once confirmed, your new supplier will coordinate the switch, which typically takes 5-21 days. For homes/businesses with storage systems, integrate usage to maximise savings during off-peak periods.
Step-by-step switching process
Check your current tariff
Determine if you’re on a fixed or variable tariff. Exit fees may apply for fixed contracts, but switching near the end term avoids penalties.Compare tariffs
Focus on three criteria:
- Off-peak/super off-peak windows (e.g., 2-5am for super off-peak)
- Price differential between peak/off-peak rates
- Contract length (new fixed tariffs like E.ON’s 12-month option stabilise pricing).
Smart meter installation
Mandatory for time-of-use tariffs. Contact your current supplier to install one free of charge if unavailable.Schedule the switch
Opt for:
- Immediate transfer (5 working days)
- Delayed transfer (post 14-day cooling-off period).
- Final meter reading
Submit readings on switch day to both suppliers to ensure accurate billing.
Home storage integration
How it works
Charge batteries during super off-peak periods (e.g., 16.33p/kWh 2-5am) and use stored energy during peak hours (38.48p/kWh 4-7pm).
Real-world UK example:
A household with a 10kWh battery could save £2.19 daily by charging at super off-peak vs. peak rates (based on E.ON Next’s 2025 tariff rates).
Key considerations
- Battery capacity: Match storage size to daily usage (5-15kWh typical for UK homes).
- Appliance timing: Program dishwashers, EV chargers, and heat pumps to align with off-peak windows.
Pros and cons
Advantages | Risks |
---|---|
Lower bills through strategic usage | Higher peak rates punish inflexible users |
Grid stability support reduces carbon footprint | Storage upfront costs (£2,000-£8,000 for home batteries) |
Fixed-rate options now available (e.g., E.ON Next Smart Saver) | Smart meter dependency limits tariff access |
Common mistakes
- Ignoring lifestyle compatibility: If a family cannot delay cooking or laundry until off-peak periods, they benefit less.
- Overestimating storage savings: Batteries only pay back with strict usage management.
- Neglecting exit fees: Switching mid-fixed-term often incurs £30-£75 penalties.
Recent UK developments
- April 2025: E.ON Next launched the first mass-market fixed time-of-use tariff with three rate periods, eliminating previous requirements for EVs/heat pumps.
- 2024-25: Ofgem reports 35% growth in time-of-use tariff adopters, driven by smart meter rollout and volatile energy prices.
- Battery grants: Scotland’s Home Energy Scotland Loan offers up to £6,000 for storage installations (2024 guidelines).
Practical tips
- Gradual shifts: Move one high-use appliance (e.g., washing machine) to off-peak first.
- Monitor habits: Use smart meter dashboards to identify “peak traps”.
- Hybrid approach: Combine tariff switching with solar panels to maximise storage return on investment.