Time-of-use energy tariffs
m (moved Smart electricity tariffs to Time-of-use energy tariffs) |
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| − | + | Time-of-use tariffs, also known as smart electricity tariffs, are possible once a customer has a smart energy meter that records energy consumption on a half-hourly basis. Energy companies, knowing the half-hourly energy use can offer a variety of new types of off-peak tariffs that charge different rates for electricity depending on the time of day according to the general demand at the time and the supply available. | |
| − | + | = Previous tariffs = | |
| − | The reality of time of use tariffs has so far been quite different from the original aims | + | Economy 7, 9 and 10 tariffs which are the long time established older versions of time-of-use tariffs similarly charged less for electricity used at certain times or overnight (usually after midnight-7am) than for electricity used during the day. These tariffs also required special electricity meters to record night time electricity use separately from day-time use. The principle being it helps to avoid using high amounts of electricity during expensive peak times such as evenings or at peak television watching times (see TV pickup). Similarly a service trialled by the National Grid in 2022 called the Demand Flexibility Service (DFS) actively engaged with large numbers of users during what they called events, and rewarded them for not using power during certain peak winter periods, helping avoid overloads and potential blackouts and saving carbon. |
| + | |||
| + | = Smart and complex meters = | ||
| + | |||
| + | The options described above are in effect have similar goals in trying to balance the demands for energy that are placed on the grid and the supply of energy available from the grid, which may increasingly vary with expansion of renewables such as wind and solar. Part of this approach towards better management of grid energy towards grid optimisation has been the installation of smart meters since around 2019, and by the end of 2021 there were 26.1 million smart meters in domestic properties in Great Britain, which was about 50% of the total. In comparison a mere 3500 homes in the UK continue to rely on old economy 7 (E7) meters for their electricity supply, and a slightly higher number on the broader or complex meter systems. | ||
| + | |||
| + | = time-of-use tariffs = | ||
| + | |||
| + | There are a number of different advantages of smart meters, but in particular for the supplier (and the grid) it means they have access to half hourly use data for each of the dwelling with a meter, which means they can better estimate and manage electricity supplies to match demands. The advantage to the consumer is that similar to the older variable rate charging systems they can be offered time-of-use tariffs, being charged specific rates for specific use periods. The reality of time of use tariffs has so far been quite different from the original aims | ||
[[Category:Articles_needing_more_work]] | [[Category:Articles_needing_more_work]] | ||
Revision as of 05:39, 21 February 2023
Time-of-use tariffs, also known as smart electricity tariffs, are possible once a customer has a smart energy meter that records energy consumption on a half-hourly basis. Energy companies, knowing the half-hourly energy use can offer a variety of new types of off-peak tariffs that charge different rates for electricity depending on the time of day according to the general demand at the time and the supply available.
Previous tariffs
Economy 7, 9 and 10 tariffs which are the long time established older versions of time-of-use tariffs similarly charged less for electricity used at certain times or overnight (usually after midnight-7am) than for electricity used during the day. These tariffs also required special electricity meters to record night time electricity use separately from day-time use. The principle being it helps to avoid using high amounts of electricity during expensive peak times such as evenings or at peak television watching times (see TV pickup). Similarly a service trialled by the National Grid in 2022 called the Demand Flexibility Service (DFS) actively engaged with large numbers of users during what they called events, and rewarded them for not using power during certain peak winter periods, helping avoid overloads and potential blackouts and saving carbon.
Smart and complex meters
The options described above are in effect have similar goals in trying to balance the demands for energy that are placed on the grid and the supply of energy available from the grid, which may increasingly vary with expansion of renewables such as wind and solar. Part of this approach towards better management of grid energy towards grid optimisation has been the installation of smart meters since around 2019, and by the end of 2021 there were 26.1 million smart meters in domestic properties in Great Britain, which was about 50% of the total. In comparison a mere 3500 homes in the UK continue to rely on old economy 7 (E7) meters for their electricity supply, and a slightly higher number on the broader or complex meter systems.
time-of-use tariffs
There are a number of different advantages of smart meters, but in particular for the supplier (and the grid) it means they have access to half hourly use data for each of the dwelling with a meter, which means they can better estimate and manage electricity supplies to match demands. The advantage to the consumer is that similar to the older variable rate charging systems they can be offered time-of-use tariffs, being charged specific rates for specific use periods. The reality of time of use tariffs has so far been quite different from the original aims
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