What does time of use tariff mean?

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What does time of use tariff mean?

A time of use tariff (TOU) is a time-based billing structure under which the rate charged for each unit of electricity consumed can vary depending on the time of the day.

For example, you could have one rate for electricity consumed during the day, another rate for electricity consumed during the night, and another rate for electricity consumed during peak hours. This is very similar to the day night meters that are available today.

The Standard Smart Tariff is a time of use (TOU) tariff that is available to all smart meter customers. The time structure for this tariff is:

  • Day (8 am to 11 pm, excluding peak time)
  • Night (11 pm to 8 am)
  • Peak (5 pm to 7 pm)

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