Time-of-Use Pricing

Time-of-Use (TOU) pricing is a billing method used by utility companies where electricity rates vary depending on the time of day. Typically, rates are higher during peak demand hours, when many people are using electricity, and lower during off-peak times, when usage is reduced. This pricing structure encourages consumers to use electricity during cheaper periods, helping to balance energy demand and reduce strain on the power grid. Ultimately, TOU pricing can lead to cost savings for consumers and promote more efficient energy usage.