Information about off-peak hot water. What is Controlled Load?
For decades, Australian households relied on off-peak hot water systems to keep energy bills low and ensure reliable access to hot water.
Traditionally, electricity providers would switch on electric storage hot water systems overnight, taking advantage of lower demand on the grid while giving families a full tank of hot water ready for morning showers.
But things have changed.
Electricity companies across Australia have shifted from predictable overnight off-peak schedules to a system now known as Controlled Load, and it’s causing confusion and frustration among our customers.
How Controlled Load hot water works
Controlled Load tariffs allow electricity providers to decide when your electric hot water heater is powered.
Instead of homeowners having control or relying on predictable overnight heating, your electricity provider can now switch your hot water system on and off at times that suit the grid.
This change was introduced to help balance energy demand throughout the day, especially with the growth of solar power feeding into the grid. It gives electricity providers flexibility to smooth peaks and dips in demand, but it also means hot water heating may:
- Not occur overnight as expected
- Happen at irregular times (morning, afternoon, or late evening)
- Sometimes not occur at all during a 24-hour period if the grid doesn’t require it
How off-peak hot water changes impact Sydney households
For many families, this shift has led to unexpected disruptions in hot water availability. Common issues include:
Running out of hot water
Families who expect their hot water system to recharge overnight may wake up to lukewarm or cold water if the tank wasn’t switched on. This can also happen during the day if the system hasn’t reheated when needed.
Scheduling problems for larger households
With smaller tanks, families often stagger showers between the evening and morning. Without predictable overnight reheating, morning showers may run cold or hot water may run out throughout the day.
Loss of control
Homeowners no longer have the ability to schedule or manually influence when their hot water system reheats. This is now entirely dictated by the electricity provider.
Lifestyle adjustments
Households may need to change shower times, spread out hot water use, or consider upgrading to larger tanks or continuous flow systems. Because electricity providers control when your water heater reheats, it has become harder for families to manage and plan hot water usage.
Does Controlled Load increase household bills?
The shift to Controlled Load doesn’t automatically mean higher bills, because the electricity used is still supplied at a discounted tariff compared to general usage. However, there are indirect costs and inconveniences to consider:
Increased reliance on booster elements
If you run out of hot water, you may need to switch to your main tariff for reheating, which is charged at a higher rate.
System inefficiency
If heating occurs during the day instead of overnight, some households may lose part of the benefit of using energy at true “off-peak” times.
What can you do?
If you’ve noticed problems with your hot water reliability, you’re not alone; many of our customers are reporting this. Here are some steps to consider:
Check your tariff
Speak with your energy provider to confirm how your Controlled Load is scheduled.
Assess your tank size
A larger storage tank may reduce the risk of running out of hot water if reheating doesn’t occur overnight. Talk to us about cost-effective hot water system upgrade options.
Consider solar or heat pump hot water
These options provide greater independence from Controlled Load restrictions and can significantly reduce long-term energy costs. Reach out to our team to discuss the best option for your hot water usage. You may also be able to claim Government rebates available, significantly reducing the cost to switch.
Talk to our team
As hot water specialists, with a little information from you, we can assess your household needs and recommend the most reliable and cost-effective solution.
Final thoughts and advice
The move from off-peak to Controlled Load has changed the way Australians experience hot water in their homes. While it helps stabilise the electricity grid, it has left many households completely unaware of the loss of control they now have over their hot water supply.
Questions
If your hot water system is no longer keeping up with your family’s needs, it may be time to explore alternatives. Reliable hot water is essential, and after a quick chat with one of our hot water specialists, you may no longer have to settle for uncertainty.