If you have an electric hot water system or a pool pump, there's a good chance you're paying more for electricity than you need to. Controlled load tariffs offer significantly cheaper electricity rates for appliances that can run during off-peak hours — yet many Australian homeowners don't know they exist or how to take advantage of them. Here's everything you need to know.
What Is a Controlled Load Tariff?
A controlled load tariff is a separate, discounted electricity rate applied to specific appliances connected to a dedicated circuit. Instead of paying the standard rate of 30–40c per kWh, controlled load circuits are charged at just 15–22c per kWh — roughly half the cost.
The trade-off is that power on these circuits is only available during off-peak hours, which are typically overnight — usually between 10pm and 7am, though the exact hours vary by network area. Your electricity distributor controls when the power switches on and off via a signal sent through the grid.
Controlled Load Rates by State (2026)
| State | Controlled Load Rate (c/kWh) | Standard Rate (c/kWh) | Saving per kWh |
|---|---|---|---|
| NSW | 17–22c | 30–36c | 13–14c |
| VIC | 16–20c | 27–33c | 11–13c |
| QLD | 15–20c | 25–30c | 10–10c |
| SA | 18–23c | 35–42c | 17–19c |
| WA | 15–19c | 28–32c | 13–13c |
| TAS | 15–18c | 25–29c | 10–11c |
| ACT | 15–19c | 24–28c | 9–9c |
How Does It Work?
A controlled load setup requires a separate meter (or a separate register on your smart meter) and a dedicated circuit. Your electricity distributor sends a ripple signal through the power lines that activates the controlled load circuit during approved off-peak windows. When the signal is active, power flows to the appliances on that circuit. When it's not, those appliances have no power.
There are typically two types of controlled load:
- Controlled Load 1 (CL1): Power available for a minimum of 8 hours overnight (e.g., 10pm–6am). This is the cheapest rate and suits appliances that can complete their cycle in one overnight window.
- Controlled Load 2 (CL2): Power available for longer periods, often including some daytime hours. Slightly more expensive than CL1 but more flexible.
What Appliances Are Best for Controlled Load?
Controlled load is ideal for appliances that consume a lot of electricity but don't need to run at specific times:
- Electric storage hot water systems: The most common use. Your tank heats up overnight and stores hot water for use throughout the day. A typical 250–315L tank uses 8–15 kWh per day.
- Pool pumps: Filtration can run overnight without any issue. Many pool owners run their pump from midnight to 6am on controlled load.
- Underfloor heating: Slab heating can be charged overnight and radiates warmth throughout the day.
- Slab heating (thermal mass): Similar to underfloor — the concrete absorbs heat overnight and releases it during the day.
How Much Can You Save?
The savings from switching to controlled load depend on how much electricity the appliance uses. Here are typical examples:
| Appliance | Daily Usage (kWh) | Cost at Standard Rate | Cost on Controlled Load | Annual Saving |
|---|---|---|---|---|
| Electric hot water (family of 4) | 10–14 kWh | $3.20–$4.90 | $1.70–$2.70 | $350–$500 |
| Pool pump (6 hours) | 6–10 kWh | $1.90–$3.50 | $1.00–$1.90 | $200–$400 |
| Underfloor heating | 8–15 kWh | $2.60–$5.30 | $1.40–$2.90 | $250–$500 |
What's NOT Suitable for Controlled Load?
Controlled load isn't right for every situation:
- Heat pump hot water systems: Heat pumps work most efficiently during warmer daytime hours when the ambient air temperature is higher. Running them overnight on controlled load reduces their efficiency, partially negating the tariff savings. Many heat pump owners are better off running their unit during solar generation hours.
- Time-sensitive appliances: Anything you need to run during the day (e.g., air conditioning, cooking) can't go on controlled load.
- Solar-connected loads: If you have solar panels, you may benefit more from running appliances during the day using free solar electricity rather than paying even a discounted overnight rate.
How to Set Up a Controlled Load Circuit
If your home doesn't already have a controlled load circuit, here's what's involved:
- Step 1: Contact a licensed electrician to assess whether your switchboard can accommodate a separate circuit for controlled load.
- Step 2: The electrician installs the dedicated circuit and any required metering changes. If you have a smart meter, it may just need a configuration update.
- Step 3: Your electricity distributor needs to activate the controlled load signal for your address. Your retailer can arrange this.
- Step 4: Contact your electricity retailer to add the controlled load tariff to your account.
The cost for setting up a controlled load circuit is typically $200–$500 for the electrician's work, which pays for itself within the first year through reduced rates. Some distributors charge a small fee for the metering change.
Is It Worth It?
If you have an electric storage hot water system or a pool pump and you're currently paying standard rates, switching to controlled load is one of the easiest ways to reduce your electricity bill. The savings are immediate, substantial, and require no change to your daily routine. Talk to your electricity retailer about adding a controlled load tariff to your account.