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Peak, shoulder, and off-peak times: what they are, when they apply, and how to use them to save money
In the regulated market, electricity companies purchase energy in the wholesale market at a price that fluctuates hourly based on supply and demand. However, in the free market, prices are set through bilateral contracts, which allows for greater price stability. These hours are grouped into time bands: Peak (with the highest price), standard (intermediate price) and off-peak (cheapest price). We will explain what the electricity time bands currently are.
The distinction between peak, shoulder, and off-peak hours is not related to the cost of generating electricity but rather to grid saturation and consumption patterns. These time bands are designed to encourage more balanced usage and prevent overloads during periods of highest demand.
In time-of-use (TOU) tariffs, the price per kWh is generally higher during peak and shoulder hours (when the grid is more heavily loaded) and lower during off-peak hours (when demand is lowest).
Checking the price of electricity and how it varies across the different time bands is a practice we recommend doing periodically. Based on this information, you can decide if you are still interested in having a time-of-use pricing tariff, or if you'd prefer to sign up for a fixed-price tariff.
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What are the peak, standard and off-peak time bands?
Electricity time bands apply to certain tariffs, like those with TOU pricing. In these plans, the kWh price varies depending on the time of day you use electricity. If you have a stable or fixed-price tariff, these time bands do not affect your costs.
The day is divided into three time bands: Peak hours, shoulder hours and off-peak hours.
| ▇ Off-Peak Hours | ▇ Mid-Peak Hours | ▇ Peak Hours |
Monday to Friday business days:
Winter and summer
- Off-Peak Hours: 12:00 a.m. - 8:00 a.m.
- Mid-Peak Hours: 8:00 a.m. - 10:00 a.m., 2:00 p.m. - 6:00 p.m. - 12:00 a.m.
- Peak Hours: 10:00 a.m. - 2:00 p.m., 6:00 p.m. - 10:00 p.m.
Saturdays, Sundays and public holidays
Winter and summer
- Off-Peak Hours: 24h
Off-peak hours
Off-peak hours run from 00:00 to 8:00 on weekdays and apply all day on weekends and public holidays.
Shoulder hours
Shoulder hours are divided into three time blocks, Monday through Friday: morning (8:00 to 10:00), afternoon (14:00 to 18:00), and night (22:00 to 00:00).
Peak hours
Peak hours consist of two time blocks and, like shoulder hours, only apply Monday through Friday on non-holiday weekdays. For TOU tariffs, peak hours are from 10:00 to 14:00 and from 18:00 to 20:00.
Electricity schedules with discrimination by time slot
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| Period | Time slot Monday to Friday | Time slot weekends and public holidays |
|---|---|---|
| Off-Peak Hours | 12 midnight to 8am | 24 hours |
| Standard Hours | 8am to 10am, 2pm to 6pm and 10pm to 12 midnight | - |
| Peak Hours | 10am to 2pm and 6pm to 10pm | - |
Tariffs with discrimination by time slot apply the time when electricity is used to calculate the price per kWh in accordance with the time slot when the electricity is consumed.
It's important to know exactly when each period occurs during the day, so you can try to concentrate your consumption in the cheapest time bands. There are also other electricity tariff alternatives available that do not have time-of-use pricing, and which may be better suited to your lifestyle.
And what about contracted power?
Contracted power is measured in kW and sets the limit for your electrical installation. It's the maximum you can ask of it. If you go above that kW level, the fuses will trip. The more power you have, the more appliances and larger, high-demand equipment you can run at the same time, but you will have to pay more in the power section of your bill.
Gas for contracted power, there are two time bands: off-peak and peak. You can have the same contracted power for both, or a different power for each time band:
| ▇ Off-Peak Hours | ▇ Peak Hours |
Monday to Friday business days:
Winter and summer
- Off-Peak Hours: 12:00 a.m. - 8:00 a.m.
- Peak Hours: 8:00 a.m. - 12:00 a.m
Saturdays, Sundays and public holidays
Winter and summer
- Off-Peak Hours: 24h
Off-Peak Time Band for Power
The off-peak time band for power runs from Monday to Friday that are not public holidays from 12 midnight to 8am. Both on public holidays and on Saturdays and Sundays the off-peak time band lasts 24 hours a day.
In some time-of-use tariffs, the price per contracted kW of power capacity may also vary depending on the time band. Typically, off-peak hours offer a lower cost, but this is not the case for all tariffs. Before adjusting your contracted power, review the specific terms of your contract to ensure you’re getting the best possible price.
Peak Time Band for Power
The peak time band for power is for electricity supplied from Monday to Friday (working days) from 8am to 12 midnight. This is when contracted power has the highest cost per kW.
Do the electricity time bands affect all consumers?
Another factor to consider and which will be important to explain, is knowing how the electricity time bands affect your bill. This will depend on the type of tariff you have contracted and whether you are in the free market or the regulated market (PVPC).
This is because the time bands affect three items on your bill:
- Energy term: the price you pay for the electricity you consume (kWh).If you have a tariff with time discrimination the price per kWh varies throughout the day in accordance with the peak, standard and off-peak time bands. An interesting alternative where you can save is, if you can concentrate your consumption in the off-peak hours, to contract the One Luz 3 Periodos tariff.However, other alternatives include fixed price tariffs or flat rate models, where the electricity time bands do not affect the price of your consumption.In the regulated market, tariffs always have time-of-use pricing, so the price always fluctuates throughout the day and the hours. In the free market, you have more alternatives: tariffs with time-of-use pricing, fixed kWh price tariffs like One Luz and Conecta Endesa, or tariff models with a stable monthly fee, regardless of what you consume.
- Power: the price you pay for the contracted power (kW).For domestic consumers, with powers less than 15kW, the price of the contracted power is always subject to timetables, in this case to two time bands: Peak and off-peak.
How can you know if a tariff with time-of-use pricing will suit you
Most tariffs on the market with time discrimination are governed by these three time bands, for example the One Luz 3 Periodos tariff.
A tariff with different time bands for the price of electricity is ideal for those who are willing to be more efficient and adapt their timetable so they can save on their bill.
Another option is that, instead of you adapting to the tariff, you get a tariff that adapts to you and your daily consumption habits. Our Tu Casa 50 tariff, for example, lets you enjoy a 50% discount on the 50 hours of highest electricity use each month. We will select those 50 hours in which you have the highest electricity demand for you, and we will apply the discount automatically.
Factors to take into account when choosing the time bands for electricity tariffs
| Options for electricity time bands | Free market | Regulated Market | Endesa Solution |
|---|---|---|---|
| Time discrimination |
✔ |
✔ |
One Luz 3 Periodos |
| Stable price per kWh |
✔ |
✘ |
One Luz |
| Stable quota |
✔ |
✘ |
Conecta |
| Tariffs with free hours of electricity consumption |
✔ |
✘ |
Tu Casa 50 |
| Two powers according to time bands |
✔ |
✔ |
All |
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You don't need to adapt to Endesa's tariffs because they adapt to you. If you go to our catalogue you can compare the different tariffs for yourself. Or if you prefer, you can answer a few questions and we will take care of comparing all the different electricity and gas tariffs and then make a customised recommendation.
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You don't need to adapt to Endesa's tariffs because they adapt to you. If you go to our catalogue you can compare the different tariffs for yourself. Or if you prefer, you can answer a few questions and we will take care of comparing all the different electricity and gas tariffs and then make a customised recommendation.
Comparison of Electricity and Gas Tariffs
You don't need to adapt to Endesa's tariffs because they adapt to you. If you go to our catalogue you can compare the different tariffs for yourself. Or if you prefer, you can answer a few questions and we will take care of comparing all the different electricity and gas tariffs and then make a customised recommendation.
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