For many Australian households, 2026 marks a turning point in electricity pricing, with Time-of-Use (TOU) plans now offering the clearest path to significant savings. With the Default Market Offer (DMO) and Victorian Default Offer (VDO) for 2026-27 confirming lower prices for TOU customers across most regions and the introduction of the innovative ‘Solar Sharer Offer’, actively managing your energy consumption can reduce annual bills by hundreds of dollars. Residential TOU customers in South East Queensland, for instance, are seeing DMO price decreases of up to 10.7%, equating to an average annual saving of $229.
This guide will help you navigate Australia’s 2026 electricity market, identify the best TOU plans, and implement strategies to maximise your savings.
What are Time-of-Use (TOU) Electricity Plans?
Time-of-Use (TOU) electricity plans charge different rates for power consumed at various times of the day, reflecting the fluctuating wholesale cost of electricity. Instead of a flat rate, your bill is divided into distinct periods:
- Peak: The most expensive period, typically late afternoon and evening (e.g., 4 pm - 9 pm), when demand on the grid is highest.
- Shoulder: Periods of moderate demand and pricing, often flanking peak times (e.g., morning and late evening).
- Off-peak: The cheapest period, usually overnight and sometimes in the middle of the day, when demand is lowest and renewable generation (like solar) is abundant.
To benefit from a TOU plan, you need a smart meter, which accurately records your electricity consumption throughout these different periods. Most new installations and many existing homes now have smart meters, enabling access to these tariffs.
Why 2026 is the Year for TOU Savings
Several factors make 2026 a prime year for Australians to embrace TOU plans:
- Lower Wholesale Electricity Prices: The Australian Energy Market Commission (AEMC) forecasts a 5% reduction in electricity prices through 2030, largely driven by increased renewable generation and battery storage. Q2 2026 saw wholesale prices considerably lower across all regions compared to last year, with New South Wales experiencing the largest decrease. This downward pressure on wholesale costs is being passed on to consumers.
- Favourable DMO & VDO Reductions: The AER’s final Default Market Offer (DMO) for 2026-27 and Victoria’s Essential Services Commission (ESC) Victorian Default Offer (VDO) for 2026-27 have confirmed price reductions for most TOU customers.
- Introduction of the ‘Solar Sharer Offer’: For the first time, retailers are required to offer a ‘Solar Sharer Offer’ for smart meter customers. This innovative plan provides three hours of free electricity in the middle of the day, allowing households to utilise abundant solar generation even without owning panels.
“For smart meter households on a time of use standing offer, there are savings across all three regions [NSW, SE QLD, SA], from a 1.1% decrease in South Australia to up to 10.7% in South East Queensland.”
State-by-State TOU Opportunities (2026-27)
Electricity pricing varies significantly by state and distribution network. Here’s a breakdown of what TOU customers can expect from 1 July 2026:
New South Wales
Residential TOU customers in NSW can expect DMO price reductions ranging from -3.7% to -7.7%, depending on their distribution zone. For a typical household, this translates to annual savings of between $72 and $211.
- Typical Peak Periods (Ausgrid network example): 3 pm – 9 pm every day during June–August and November–March.
- Solar Sharer Offer: 11 am – 2 pm daily, offering three hours of free electricity (up to 24 kWh cap).
Retailers like AGL, Origin Energy, and EnergyAustralia offer various TOU plans across the Ausgrid, Endeavour Energy, and Essential Energy networks. Always use a comparison tool like Energy Made Easy to find the best market offers tailored to your postcode.
Victoria
The Victorian Default Offer (VDO) for 2026-27 has seen an average 5% reduction for households, cutting approximately $84 off annual electricity bills. The ESC has introduced a new three-period TOU tariff with a ‘solar soak’ window (11 am – 4 pm).
Victorian TOU customers will see varied rates depending on their distribution zone. Below are the VDO 2026-27 residential TOU rates (including GST), effective 1 July 2026.
| Distribution Zone | Daily Supply Charge | Peak (4pm-9pm) | Off-peak (9pm-11am) | Shoulder (11am-4pm) |
|---|---|---|---|---|
| AusNet Services | $1.2824 | $0.4200/kWh | $0.2211/kWh | $0.3198/kWh |
| CitiPower | $1.2114 | $0.3461/kWh | $0.1659/kWh | $0.2596/kWh |
| Jemena | $1.2713 | $0.3662/kWh | $0.2141/kWh | $0.2747/kWh |
| Powercor | $1.3805 | $0.3762/kWh | $0.1726/kWh | $0.2822/kWh |
| United Energy | $1.1912 | $0.3647/kWh | $0.1726/kWh | $0.2735/kWh |
Note: These are VDO rates. Market offers from retailers may offer different pricing and periods. Use Victorian Energy Compare for specific market offers.
South East Queensland
Residential TOU customers in South East Queensland will experience the largest DMO price decrease of -10.7%, resulting in average annual savings of $229.
- Typical TOU Periods (Energex network example): Peak 4 pm – 9 pm; Off-peak 11 am – 4 pm; Shoulder 9 pm – 11 am the next day.
- Solar Sharer Offer: 11 am – 2 pm daily, offering three hours of free electricity (up to 24 kWh cap).
With significant reductions and a strong solar presence, SE QLD households are well-positioned to benefit from TOU tariffs, especially by shifting daytime usage.
South Australia
South Australia’s residential TOU customers will see a modest DMO price decrease of -1.1%, saving approximately $25 annually. While flat-rate DMO prices increased slightly, TOU tariffs remain a strategic choice.
- Typical TOU Periods (SA Power Networks RESELE tariff example): Peak 5 pm – 9 pm; Off-Peak 10 am – 4 pm; Shoulder all other times.
- Solar Sharer Offer: 12 pm – 3 pm daily, offering three hours of free electricity (up to 24 kWh cap), particularly relevant given SA’s high solar penetration.
South Australia already has some of the highest electricity prices in the country, making TOU tariffs and strategies like joining Virtual Power Plants (VPPs) particularly attractive.
Maximising Your TOU Savings in 2026
Shifting your energy consumption is key to unlocking savings on a TOU plan:
- Optimise Appliance Usage: Run high-energy appliances like dishwashers, washing machines, and clothes dryers during off-peak or shoulder periods. Many modern appliances have delay start functions for this purpose.
- Smart Home Energy Management: Integrate smart plugs, smart thermostats, and home energy management systems to automate appliance scheduling and monitor real-time consumption. These systems can help you cut bills by over $1,000 annually. For more, read our guide on Best Home Energy Management Systems in Australia 2026: Slash Bills by $1,000+ Annually.
- Solar Power & Batteries: If you have solar panels, maximise self-consumption during the day. A home battery can store excess solar for use during peak times, or even allow you to participate in a Virtual Power Plant (VPP) program, earning you up to $1,500 annually. Explore our guide on Join a VPP in 2026: Earn Up To $1,500 Annually & Boost Grid Stability.
- Electric Vehicle (EV) Charging: Charge your EV overnight during off-peak hours when electricity is cheapest. This can significantly reduce your running costs. Learn more about the savings in our guide: Real Cost of Owning an EV in Australia 2026: Save Thousands Annually.
- Leverage the Solar Sharer Offer: If you’re on this new DMO/VDO standing offer, schedule your heaviest daytime usage (e.g., pool pumps, hot water systems, EV charging) during the three free hours to maximise benefits. This applies even if you don’t have rooftop solar.
Understanding Your Bill and Comparing Plans
When comparing electricity plans, always look beyond the headline rates:
- Daily Supply Charge: This is a fixed daily fee for being connected to the grid, regardless of usage. A lower daily supply charge can be beneficial for low-usage households.
- Usage Rates (c/kWh): These are the variable costs for the electricity you consume. For TOU plans, carefully compare peak, shoulder, and off-peak rates.
- Comparison Websites: Use government-backed comparison tools for the most accurate, postcode-specific market offers. For NSW, QLD, SA, ACT, and TAS, use Energy Made Easy. For Victoria, use Victorian Energy Compare.
- Energy Relief & Concessions: The universal federal Energy Bill Relief Fund ended on 31 December 2025. However, state and territory governments continue to offer targeted concessions for eligible households. Check your state’s specific programs. For more information, refer to Australia’s Energy Bill Relief Fund 2026: Your Guide to Current Support and Savings.
Bottom Line
Time-of-Use electricity plans in Australia are more advantageous than ever in 2026, driven by lower wholesale costs, favourable DMO/VDO adjustments, and the new Solar Sharer Offer. While South Australian residential flat-rate customers saw a slight increase, TOU customers in NSW, Victoria, and South East Queensland are benefiting from significant price reductions. By strategically shifting your energy consumption to off-peak and shoulder periods, especially leveraging smart home technology and solar solutions, you can achieve substantial annual savings. Don’t rely on standing offers; actively compare market offers using government comparison tools to find the best plan for your household’s unique usage patterns in 2026.