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Time of Use Pricing

Time-of-use (TOU) pricing reflects the varying costs of electricity production throughout the day. The cost is lowest during off-peak periods and highest during peak periods. If consumers shift their usage to off-peak times, it can reduce generation costs for utilities and lower overall tariffs by avoiding expensive peak generation sources. Adopting TOU pricing requires replacing standard electricity meters with programmable meters that can track usage during different time periods. Customers who select the TOU pricing scheme will pay an application fee and higher monthly metering and supply charges.

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Kaye Freyssinet Nermal Abanggan
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20 views2 pages

Time of Use Pricing

Time-of-use (TOU) pricing reflects the varying costs of electricity production throughout the day. The cost is lowest during off-peak periods and highest during peak periods. If consumers shift their usage to off-peak times, it can reduce generation costs for utilities and lower overall tariffs by avoiding expensive peak generation sources. Adopting TOU pricing requires replacing standard electricity meters with programmable meters that can track usage during different time periods. Customers who select the TOU pricing scheme will pay an application fee and higher monthly metering and supply charges.

Uploaded by

Kaye Freyssinet Nermal Abanggan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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l

There will

be a need
to replace
electricity meters
with TOU Programmable meters with time
stamping capability.

l For those who will

avail of TOU Pricing


Scheme, there will be
a one-time application fee and additional
monthly metering and
supply charges.

TIME OF
USE
PRICING

ime-of-Use (TOU) Pricing


is a pricing mechanism designed
to reflect
the cost of
electricity
at any particular time
of the day.
The cost of producing electricity differs
between different
hours of the day.
The cost of power
is lowest during
off-peak periods
and highest during
peak periods. As

demand or consumption of electricityincreases during


the day, the cost
of generation
also increases.
If consumers are
able to shift their
power usage during off-peak when the
cost of power is at
its lowest, it will
promote in the
utilization of
cheaper generating capacities, avoid
operation of oil-

Other Notes on TOU


l Generation related costs

are about 70% of your


electric bill.

l During off-peak period,

generation cost is lower


than the average price.

l Under the

TOU scheme,
the consumer has
the chance
to lower his
electric bills
by shifting his
electricity use to off-peak
periods where the rate of
electricity is lower.

l TOU Rates differs be-

based
plants and delay the
need to construct
additional generating facility. This
will result to lower
operating costs for
generation companies
and lower tariffs to endusers.

tween working days


(Mondays-Saturdays) and
non-working days (Sundays and Holidays).

l TOU Rates varies at difl During peak period, gen-

eration cost is higher than


average price.

ferent times of the year,


e.g. Dry Season (JanuaryJune) and Wet season
(July-December).

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