What Is Controlled Load Electricity?

Your electricity bill lists two meters. One covers your lights, appliances, and power points. The other sits under a label like "controlled load" or "CL1." Most households in NSW, Queensland, and South Australia have this second meter, and most households ignore it.

Controlled load electricity feeds a dedicated circuit that your energy distributor switches on and off at set times. The distributor, not you, decides when power flows to that circuit. In exchange for giving up control over timing, you pay a lower rate per kilowatt-hour. Your hot water system is the most common appliance on this circuit. Some households also run pool pumps, slab heating, or battery chargers on controlled load.

Understanding controlled load matters because it affects how you shop for electricity plans, how you size a solar system, and whether you should upgrade your hot water unit. A household that switches from an electric tank to a heat pump without addressing the controlled load meter can end up paying more, not less. Reviewing your internet provider alongside your energy plan can unlock further household savings.

Off-peak electricity and controlled load electricity both cost less than standard rates. They operate through different mechanisms and serve different purposes.

A time-of-use plan gives you off-peak pricing during certain hours, often 10pm to 7am on weekdays. You choose when to run your dishwasher, washing machine, or dryer during those windows. The meter records usage across all your appliances on the same circuit. You retain control over which appliances run and when.

A controlled load tariff uses a separate meter on a separate circuit. Your distributor, such as Ausgrid in Sydney, Energex in Brisbane, or SA Power Networks in Adelaide, sends a ripple signal through the grid to switch that circuit on. The distributor picks the hours based on network demand. You cannot override the schedule or plug other appliances into the controlled load circuit. The wiring is hardcoded at your switchboard.

The ripple signal technology dates back to the 1950s. Distributors inject a low-frequency electrical pulse onto the power line. A receiver relay at your switchboard detects the pulse and closes the circuit to your hot water system. This system has operated for decades without internet connectivity or smart meter infrastructure.

Most distributors offer two controlled load tariff options. Controlled Load 1 (CL1) gives your appliance around 8 hours of power per day, spread across off-peak periods. These hours cluster between 10pm and 7am, though the distributor can shift them based on grid conditions. Controlled Load 2 (CL2) gives around 18 hours per day, keeping the appliance off during the afternoon peak demand window between 2pm and 8pm.

CL1 costs less per kilowatt-hour because the distributor has more freedom to schedule your usage during the cheapest network periods. CL2 costs more per kilowatt-hour but keeps your hot water heating for longer stretches. A four-person household that burns through hot water by 3pm might need CL2 to reheat the tank before the evening rush. A couple with low daytime hot water demand can save more on CL1.

Ausgrid in Sydney labels these as Controlled Load 1 and Controlled Load 2. Energex in Queensland uses the same naming. SA Power Networks calls them "off-peak" and "evening boost." Essential Energy in regional NSW uses "controlled load off-peak" and "controlled load shoulder." Check your bill or your distributor's tariff schedule for local naming conventions.

Your choice between CL1 and CL2 depends on your tank size and household hot water demand. A 250L tank on CL1 heats overnight and stores enough hot water for a two to three person household through the next day. A 400L tank on CL1 serves a four-person household. If you find yourself running out of hot water in the afternoon on CL1, switching to CL2 solves the problem at the cost of a higher per-kWh rate.

Electric storage hot water systems make up the vast majority of controlled load connections. These systems heat a tank of water (125L, 250L, or 400L) using a resistive element inside the tank. The element draws between 2.4kW and 4.8kW while heating. A 250L tank serving a three-person household uses about 8 to 12 kWh per day on controlled load. At a CL1 rate of 17c/kWh, that costs $1.36 to $2.04 per day.

Pool pumps qualify for controlled load in most distributor areas. A standard pool pump draws 1kW to 1.5kW and runs 6 to 8 hours per day during summer. Putting it on CL2 (18 hours available) gives the pump enough window to complete its cycle. CL1's 8-hour window works if you have a variable-speed pump that runs longer at lower wattage. Running a pool pump on controlled load instead of peak rate saves $200 to $400 per year depending on your pool size and pump efficiency.

In-slab heating in colder regions like Canberra and parts of Victoria can connect to controlled load. The concrete slab absorbs heat overnight through embedded cables and releases it during the day as passive warmth. Battery storage systems, including Tesla Powerwall units, can charge on controlled load tariffs if a licensed electrician wires the charger to the controlled load circuit. This strategy makes sense when controlled load rates sit well below solar feed-in tariff rates.

Instantaneous (continuous flow) hot water systems do not work on controlled load. These units heat water on demand and need power available at all times. Gas instantaneous systems use gas as fuel and electricity for the ignition and control board. Electric instantaneous systems draw 18kW to 27kW and require a dedicated 3-phase power supply, making them incompatible with controlled load circuits.

Controlled load rates vary by state, distributor, and retailer. Our state-by-state electricity rates guide covers both general usage and controlled load pricing in detail. The Australian Energy Regulator (AER) sets the Default Market Offer (DMO) each July, which caps standing offer prices. Most competitive market offers from retailers like Origin, AGL, and EnergyAustralia price controlled load well below the DMO cap. The rates below reflect typical market offers in 2026, not standing offers.

Victoria and Tasmania do not use traditional controlled load tariffs. Victorian distributors moved most households to time-of-use metering after the smart meter rollout completed in 2014. If you live in Victoria with an older meter and a dedicated hot water circuit, you may still have a controlled load arrangement, but this is uncommon. Contact your distributor (CitiPower, Powercor, Jemena, AusNet, or United Energy) to confirm your metering setup.

The daily supply charge is an often-overlooked cost. Some retailers charge $0 daily supply for the controlled load meter, folding the cost into the per-kWh rate. Others charge 20c to 40c per day. On a 365-day year, a 35c daily supply charge adds $127.75 to your annual bill. When comparing energy plans, check the controlled load daily supply charge alongside the per-kWh rate.

Pull up your latest electricity bill. Look for a second line item under "usage charges" with a label like "controlled load," "off-peak hot water," "CL1," or "dedicated circuit." The rate will be lower than your general usage rate. Some retailers list it as a separate NMI (National Metering Identifier) or a suffix on your main NMI. A bill showing two NMIs or two sets of usage charges confirms a controlled load arrangement.

You can also check your meter box. A controlled load setup has two meters, or a single smart meter with two registers. The controlled load circuit connects through a separate breaker in your switchboard, often labelled "HWS" (hot water system) or "CL." An electrician can identify which breaker feeds the controlled load circuit and which appliance sits on it. The controlled load breaker will be in a different section of the switchboard from your general power breakers.

If you rent and your bill shows controlled load charges, your hot water system runs on that circuit. You cannot change the tariff arrangement without your landlord's approval, since the distributor controls the meter configuration. Renters who want to understand their controlled load usage should request a detailed usage breakdown from their retailer, which shows daily consumption patterns on the controlled load meter.

Some energy comparison websites (like Energy Made Easy, the AER's comparison tool) separate general usage and controlled load usage when estimating annual costs. Enter both your general usage and controlled load usage figures to get accurate plan comparisons. Using only your general usage figure will produce misleading cost estimates. For a full review of one of Australia's largest retailers, read our Origin Energy plans and pricing review.

Controlled load saves money when you heat water with an electric storage tank. A 250L tank on CL1 at 17c/kWh costs about $620 per year. The same tank on a flat-rate tariff at 33c/kWh costs about $1,200 per year. That gap of $580 per year makes controlled load worth keeping for electric storage hot water. Over the 10 to 15 year lifespan of a tank, the savings add up to $5,800 to $8,700.

If you switch from an electric storage tank to a heat pump hot water system, the economics shift. Heat pumps use a compressor and refrigerant to extract heat from ambient air. They consume about one-third the electricity of a resistive element. A heat pump on controlled load uses so little power (3 to 5 kWh/day instead of 10 to 12 kWh/day) that the daily supply charge for the controlled load meter can wipe out the savings from the lower rate. Many heat pump owners disconnect the controlled load meter and run the unit on their main supply.

Solar panel owners face a similar calculation. If your solar system generates enough daytime power to heat water, running the tank during the day on free solar electricity beats a controlled load rate that heats water overnight. A timer or solar diverter (like a Catch Power or Solar Analytics device) shifts your hot water heating to midday hours when solar output peaks. A 5kW solar system in Sydney produces 18 to 22 kWh/day in summer, more than enough to run a hot water tank and power the house.

The decision tree looks like this. If you have an electric storage tank and no solar panels, keep controlled load. If you have an electric storage tank with solar panels, consider a timer to heat water during solar hours and remove controlled load. If you have a heat pump, remove the controlled load meter and run on your main supply. If you have a gas hot water system, you should not have a controlled load meter at all.

To remove a controlled load meter, contact your distributor and request a meter reconfiguration. Ausgrid charges around $200 to $300 for a site visit to rewire the hot water circuit onto the main supply. Your electrician will need to move the hot water breaker from the controlled load section to the main section of your switchboard. The process takes 2 to 4 weeks from request to completion. Once removed, your hot water usage appears on your general supply meter and gets charged at your standard tariff rate.