The Basics of Time of Use Electricity Pricing
Launch library · evergreen read
Time of use pricing charges different rates for electricity depending on when it is consumed, reflecting the fact that generating and delivering power costs more during periods of high overall demand than during quieter periods when supply comfortably exceeds what is being used across the network as a whole, at any given moment of the day.
Under this structure, electricity used during peak periods, typically evenings when many households are cooking, heating or cooling simultaneously, costs more than electricity used overnight or during other off peak windows when demand on the grid is considerably lower and generation capacity sits comparatively idle.
Households can respond to this pricing by shifting flexible tasks like washing, charging or dishwashing to cheaper periods where practical, potentially reducing their overall bill without necessarily using any less electricity in total, simply by changing when that electricity is actually drawn from the grid during the day rather than in the evening.