Energy News, Solar & Renewables
Free Power Hours or Other Plans: What’s Better For You?
Free power hours might seem cost-effective, but is it really?
Important Points
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Free power hours let you use electricity at no cost during specific times of the day.
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Your energy usage patterns determine which plan will save you more money.
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Households using more power outside the free window may pay higher overall costs.
If you’ve been looking into electricity plans lately, you’ve probably come across deals that offer “free power hours”, which are periods of the day where you can use electricity without paying a cent. On the other hand, there are the more traditional standard electricity plans, where you pay the same rate for every unit of electricity you use, no matter the time. Both are appealing in their own ways, but deciding which one is better for you depends a lot on your household habits, when you use the most power, and how much time you have throughout the day.
What Are ‘Free Power Hours’?
Free power hours are designated times during the day when some energy retailers offer electricity at no cost.
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Set time window of free electricity usage
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Lets users choose when to save
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Fits well with households that can shift their usage
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Limited savings if schedule doesn’t match
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Higher rates may apply outside free hours
Power Hour Plans vs Other Plans
To see how these offers work in practice, let’s look at OVO Energy’s Free 3 Plan. This plan gives you a dedicated three-hour window each day, 11 AM to 2 PM, where any electricity you use costs nothing – also called ‘power hours’.
It sounds tempting, right? Three hours of free electricity each day is nice on paper, but there are a few details worth knowing.
Image source: OVO Energy, The Free 3 Plan
First off, the ‘free’ part only applies to that three-hour window. Any power you use outside those hours is billed at OVO’s standard usage rate, which can be higher than what you’d find on some market offers.
This means the plan works best for households that are able to use a majority of their electricity during those ‘power hours’. If you can’t change your usage patterns or you’re rarely home, you might end up paying more.
Take a look at how the plan structures its cost. When you look at the table, you can see how OVO’s Basic Free 3 Plan (VIC) stacks up against a standard flat-rate option. OVO charges a lower daily supply charge at around 105.105c per day, but its usage rate outside the free 3-hour window jumps to around 30c/kWh. By contrast, a flat-rate plan has a higher daily supply charge ($1.54) but a cheaper usage rate at 25.7c/kWh. This means if your household uses most of its power during the free window, OVO can be a money-saver. But if your usage is spread out across the day and night, the flat-rate plan may work out more affordable overall.
Plan Type | Daily Supply Charge | Usage Rate (Outside Free Window) |
|---|---|---|
|
OVO Free 3 Plan (NSW) |
105.105c per day |
30.6075c c/kWh |
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Standard Plan |
154.10c per day |
25.57 c/kWh |
The real question is: do you want to work around your plan, or have it work around you?
If your household’s energy consumption during non-free hours is high, these costs can add up. In contrast, a standard plan may offer a more predictable and potentially lower overall cost, depending on your usage, but is often more expensive.
This doesn’t mean that you should dismiss this plan. Different households will see different results. For example:
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Night shift workers or students at home during the day might find the Free 3 plan ideal. They can run appliances, cook meals, and even heat or cool their home during the power hour period.
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If you’re retired or work from home, a Free Power Hour plan like OVO Energy’s Free 3 could be particularly useful. Since you’re likely home during the day, you have the flexibility to move energy-intensive activities like running the dishwasher, washing machine, or even cooking meals, into the free electricity window.
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Families with young children home during the day may already have high midday energy use, making the plan naturally cost-effective, although they’ll still need to watch their usage during the evening.
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EV owners could benefit if they can schedule their charging during the free window, but those who prefer overnight charging might not see much of a difference.
Frequently Asked Questions
- Does my controlled load (e.g., electric hot water) get the free rate?
Many plans with free power hours exclude controlled loads, meaning hot water heating may still cost full price. As of the time of writing, both OVO Energy’s Free 3 Plan (11 AM-2 PM) and GloBird Energy’s Free Lunch Plan (12 PM-2 PM) exclude controlled or dedicated circuits such as electric hot water systems or pool pumps. These will continue to be billed at normal rates regardless of the time.
- Is the plan available for renters or just homeowners?
Free power hour plans, like OVO’s Free 3, require a communicating smart meter to track usage in real time. If you’re renting, you may already have one installed, but it’s best to confirm with your energy retailer. You should also check with your landlord or property manager, as any meter upgrades usually need their approval.
- Should I take meter readings on moving days?
Yes. Take photos or record meter readings on your move-out and move-in days. This time-stamped record could help resolve any potential billing disputes with your retailers.
- Is there eligibility criteria for a plan with free power hours?
Yes. Eligibility can vary between retailers. For the Free 3 plan, monthly electronic billing and direct debt are both required. This offer also applies to residential customers with a communicating smart meter on an applicable network tariff.
- Can you add GreenPower to a plan with free power hours?
It depends on the retailer. Some free power hour plans let you opt in to GreenPower for an added cost, while others don’t offer it at all. OVO Energy’s Free 3 Plan includes the option to upgrade to 100% GreenPower.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
