Energy is one of those costs that can creep up without you noticing. And for many businesses, when you use energy matters just as much as how much you use.

That’s where time of use tariffs come in.

They charge different rates depending on the time of day. If you can shift some of your usage to cheaper periods, you can bring your costs down without cutting back on what you actually do.

Here’s how they work and whether they could make sense for your business.

What is a time of use tariff?

A time of use tariff is an energy plan where the price changes throughout the day.

Instead of paying one flat rate, you’ll usually see a mix of:

• Higher rates during peak times, when demand is highest
• Lower rates during off-peak times, when demand is lower

Peak times are often during the working day, especially late afternoon and early evening. Off-peak periods tend to be overnight or early morning, depending on the supplier.

The idea is simple. Energy costs more when more people are using it, and less when demand drops.

How this affects your business

Whether a time of use tariff saves you money depends on how your business uses energy.

If most of your energy use happens during peak hours, you could end up paying more. But if you have some flexibility, there’s a real opportunity to reduce costs.

For example, businesses that:

• Run equipment overnight
• Have flexible working hours
• Use energy for heating, charging or storage
• Can schedule certain tasks outside busy periods

are often better suited to this type of tariff.

Even small changes in timing can make a difference over time.

Ways to save money with time of use tariffs

You don’t need to completely change how your business runs to benefit. A few practical adjustments can go a long way.

Shift energy-heavy tasks where possible

If you use machinery, heating systems or charging equipment, see if any of that can run during off-peak hours. This is often the biggest opportunity to save.

Make the most of overnight rates

Some tariffs offer much lower prices overnight. If your business can take advantage of that, for example by charging vehicles or running systems in the background, it can reduce your overall bill.

Use timers and automation

You don’t have to manage this manually. Timers, smart plugs and energy management systems can help you move usage without extra effort.

Review your usage regularly

Understanding when you use energy is key. Many suppliers offer usage data or dashboards that show your patterns throughout the day.

The goal isn’t perfection. It’s about making small, realistic changes that add up.

Things to watch out for

Time of use tariffs aren’t right for every business.

If your energy use is fixed during peak hours, for example a café or shop that’s busiest during the day, you may not see much benefit.

It’s also important to look at the full pricing structure. A cheap off-peak rate can be balanced by a higher peak rate, so you need to consider your overall usage rather than focusing on one part of the tariff.

Before switching, it’s worth checking:

• Your current usage pattern
• The difference between peak and off-peak prices
• Whether your operations can realistically shift

This helps you avoid choosing a tariff that looks good on paper but doesn’t fit how your business runs.

Is it worth it?

For some businesses, time of use tariffs are an easy win. They reward flexibility and can lower costs without reducing activity.

For others, especially those tied to daytime trading, the savings may be limited.

The key is understanding your energy habits and choosing a tariff that matches them. When the two line up, it can make your energy spend feel much more manageable.