time of use (DSM) (TOU)

Time of Use (TOU) is the time-based tariffing of electricity consumption. This type of tariffing is intended to reduce peak consumption.

Peak electricity consumption is charged at the highest rates. Therefore, it can be assumed that some consumers do not operate their electrical equipment during this time. Electricity rates at peak times are higher than those at lower electricity consumption. The latter are far below the general average. Time-based tariffs depend on the electricity supplier, the season, the day of the week and the time of day.