Under the changes, which are scheduled to be introduced in NSW in mid-2017, electricity usage would be charged different rates, depending on the time of day and the demand on the network.

The peak times and rates would be determined by the electricity networks - Essential Energy at Dubbo - but would most likely be during the afternoon when people are returning home from school and work.

However, Australian Energy Market Commission (AEMC) chairman John Pierce said about 70 to 80 per cent of consumers would have lower network charges in the medium term.

"Research shows average residential charges could reduce by $28 to $145 per year.

"Households which use power at a steady rate through the day will receive the biggest benefits," he said.

"Based on Victorian trials we also found a small business could save up to $2118 or 34 per cent of its total annual electricity network charges by using less electricity at peak times for just 20 hours per year when networks are congested."

In AMEC's Rule Determination report the organisation said those who used less energy at peak times of the day would benefit from lower network prices.

"Consumers who use proportionately more energy at peak times are likely to have higher prices, although those consumers would also have the greatest potential for future savings if they chose to change how they use energy and move some of their peak use to off-peak times," said the report.

Mr Pierce said the changes were introduced in response to existing network prices charging too much for off-peak use of the network and too little for peak use.

"Network pricing reforms are one of the AEMC's building blocks to help consumers see the dollar value of their electricity consumption choices, so they can more actively participate in Australia's electricity market," he said.

"It's about people being able to see the value of their choices such as decisions to set thermostats differently on airconditioners or to choose appliances with higher energy ratings."

The pricing structure is also expected to benefit consumers by reducing infrastructure costs.

The electricity networks have until September before they start submitting their draft proposals for the new tariffs to the Australian Energy Regulator.

In Victoria the new prices will be effective from the start of 2017 but will not be introduced to the rest of the country until July.

Network businesses also have the option of transitioning the new price structure across five or more years.