Understanding the basics

Navigating the world of energy plans can feel like a daunting task. At its core, an energy plan is a contract between you and your home energy supplier that details how your electricity usage is billed.

There are many types of plans that offer a variety of benefits, like renewably sourced energy plans, fixed-rate plans and time-of-use plans. Each plan type has its advantages, but finding the one that is right for you depends on how much electricity you consume and when you use it. 

What is a time-of-use plan?

Time-of-use plans offer you savings during certain times of the day, which can allow you to maximize your electricity usage based on when you consume energy. 

Some of the most common time-of-use plans are the free nights and free weekends plans. These plans are designed to fit your lifestyle and enable you to make smarter energy choices, which can help you save on your monthly electricity bill. 

A time-of-use plan is a type of fixed-rate electricity plan, which means it offers a set rate per kWh of electricity you consume while engaged in the plan’s contract. This is different from a variable-rate plan, which fluctuates the rate per kWh depending on current market prices. 

The appeal of free nights or weekends plan

Imagine a plan where your energy charge dips to zero during the hours you use the most energy. That's the allure of free nights or weekends plans. They're designed to offer you peace of mind, knowing that when you come home from work or have a busy weekend hosting friends or family, you can consume energy worry-free during those free usage periods. 

How do free nights and weekends plans work?

With a time-of-use plan, your day is broken down into different periods. Typically, this includes:

• Peak hours: When energy demand is high. This is usually during the afternoon and early evening.
• Off-peak hours: When demand drops. This often covers late night to early morning.

With a time-of-use plan, during off-peak hours, like at night or throughout the weekend, you get a reduced electricity rate or a zero-charge rate.  With plans like the Direct Energy Twelve Hour Power plan or the Free Power Weekends plan, you can strategically enjoy free electricity during these periods to help reduce your monthly electricity costs. By waiting to do high-energy-consuming tasks like laundry or running the dishwasher until your free usage period, you can lower the amount of electricity you have to pay for and may see regular savings on your monthly bill. 

The role of smart meters in tracking usage

Smart meters are the unsung heroes of free nights and weekends plans because without them, times-of-use plans wouldn’t be possible. These advanced devices track your electricity usage in real time, which is how electricity providers are able to offer energy management and usage-tracking tools. Smart meters allow your energy supplier to see exactly how much electricity you consume and when it’s used, and accurately apply that free usage during those nights or weekends. 

Evaluating the worth of free nights and weekends plans

By encouraging energy use during free usage periods, time-of-use plans can help customers save on their monthly bills by taking advantage of the free electricity. They also promote conservation by making consumers more energy conscious and helping them make smarter, more energy-efficient choices. 

Benefits uncovered: How you can save

By shifting your high-energy activities to free usage periods, you can reduce the amount of electricity you’re paying for on your monthly bill. These plans work best when you can make small but smart changes to your lifestyle, which can help lead to savings that add up over time.

This can be as simple as waiting to start the laundry or dishwasher until the evening when you have a free nights plan, or doing big DIY projects on the weekends if you have a free weekends plan. The more high-usage activity you’re able to shift into your free use periods, the more you can save. 

Is a time-of-use plan right for you?

While the benefits are enticing, it's crucial to consider all aspects of these plans, like understanding how energy rates work during peak usage times. Assessing your typical electricity usage patterns is also key to determining if a free nights or weekends plan aligns with your lifestyle and can truly offer savings.

How do I figure out my energy usage trends?

Before selecting an electricity plan, find out the square footage of your home and determine your average kWh usage per month. Knowing your square footage can help your energy provider approximate your average usage and give you a more accurate rate quote. To find your average monthly usage, check if your current electricity provider has energy usage tracking tools to help you keep track of your usage. If not, follow these steps to calculate your average usage:

• Find your monthly kWh usage history from the last 12 months (or as many months as you have available) 
• Add together the kWh total from each month 
• Divide that by the number of months added
• The result is your average monthly usage