Electricity: Getting the timing right

Time-of-Day-Pricing for electricity will benefit both consumers and the grid

Prices in a perfect market are determined by demand and supply. Both demand and supply change, and so do prices. Consumers are often exposed to these changing dynamics. Think of how airline tickets jump before the vacation travel season. Or how one has to pay more for watching a movie on weekends compared to weekdays. Now, imagine the same scenario for electricity. Experts call it dynamic retail pricing, or “Time-of-Day” (ToD) tariff. ToD tariff is recognised globally as an important demand side management tool for incentivising consumers to shift a portion of their loads from peak times to off-peak times,