Here is an example of two Time of Use rate plans offered by California electric utility PG&E. To learn more, visit: What are Time of Use rates – and when is electricity cheapest? Cost of peak vs off-peak electricity pricesĪ question that is likely to be on everyone’s mind, is what is the difference in pricing between peak and off-peak hours? Well, the reality is that prices will vary across different utilities and seasons. Using Time of Use rate plans reduces electricity usage during periods of high demand as well as allows utility companies to increase electricity rates in alignment with production costs. This is why utility companies introduced time of use rates. Traditionally, during peak hours, it will cost the utility more to produce electricity. While there are varying prices for consumers using electricity, there are also varying prices for utilities producing electricity. Why do utility companies use Time of Use rates? TOU rate plans are offered to residential customers and used to push a higher rate for electricity when in high demand (peak hours) and a lower rate during hours of low demand (off-peak hours). Time of Use rates - otherwise known as TOU rates - are a type of electricity billing that varies electricity costs based on the time of day it is being used. Why utilities are switching to Time of Use rates and peak hours ![]() Winter off-peak electricity hours Time zone These off-peak hours are only relevant for weekdays, as energy usage patterns tend to be very different on weekends. ![]() Here are the standard off-peak electricity hours for different time zones. and 5 p.m., between these times will be when electricity demand is at its lowest. With both working and school hours usually ranging between 8 a.m. This is due to both working hours and school hours being very similar amongst households. Similar to finding out your region’s peak electricity hours, to find out the off-peak hours you need only look at your own routine. Timings: When are off-peak electricity hours? Although, off-peak hours will often be when homeowners and occupants are out of the house, whether that be at work or school. Off-peak rate and hours can vary depending on your location and utility. With that, off-peak hours are also when electricity prices are the cheapest. In contrast to peak (or ‘on-peak’) electricity hours, off-peak hours are when electricity demand and consumption are at their lowest. To find out your exact peak electricity hours for your Time of Use plan, you should contact your utility company. Remember, these are the standard time periods. When you’re using the most electricity, it’s likely that your neighbors are as well.Īs a reference, here are the standard peak periods in different time zones. Energy usage patterns among a community are usually pretty consistent. Timings: When are peak electricity hours?Įstimating the peak electricity hours in your area can be as easy as looking at your own usage patterns. The premium you pay for using electricity during peak hours will depend on your utility company, and the specific rate plan you have opted for. During these hours you will experience what is known as ‘peak pricing.’ Peak pricing is where customers pay an additional fee during periods of high demand. Peak electricity hours are also when the cost of electricity is at its highest. ![]() The specific hours that qualify the peak hours are not the same everywhere they can vary depending on where you live, and the time of year. Peak electricity hours are a certain time of day at which energy consumption is at its highest.
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