Market & Industry Terms

Peakload Power

Key takeaways

  • Peakload describes the higher-demand hours of the day when electricity demand is well above the baseload minimum.
  • Peak hours typically cover weekday daytime and early evening; the exact window depends on the market product.
  • Peakload power is more expensive to generate and to trade than baseload, which is reflected in business tariffs that vary by time of day.

What is peakload power?

Peakload is the term used for the higher-demand portion of the electricity day — the hours when offices, schools, retail and homes drive demand above the baseload floor.

In wholesale trading, ‘peak’ contracts typically cover the working day (commonly defined as weekday 7am–7pm in GB markets), while ‘off-peak’ covers nights and weekends. The premium reflects how expensive it is to bring less efficient or short-run plants on to meet daytime demand.

Why peakload pricing matters

Businesses with a strongly daytime load profile consume more during peak hours and so see higher blended unit costs than a 24/7 site.

Network charges like DUoS and TNUoS are also higher in peak periods, amplifying the effect on bills.

This is why load shifting (moving flexible loads to off-peak) can deliver real savings.

Sources

  1. NESO — National Energy System Operator (Britain’s electricity system operator)
  2. NESO — How we balance the grid
  3. GOV.UK — Department for Energy Security and Net Zero (DESNZ)