Conventional pricing models that provide the basis how CustomersThe human individuals, families, organisations, institutions... Click for more are billed for their use of ElectricityA form of Energy and set of physical phenomena that result f... Click for more provided by the Power SystemA highly complex cyber-physical and transactional System tha... Click for more in a manner designed to cover the costs of generating, transmitting, and distributing Electricity. Following are a sample of key concepts relevant to alternative Tariffs/Rates models:
- Volumetric Tariffs/Rates: Pricing solely based on the units of EnergyElectrical Energy is the product of electrical Power and tim... Click for more used by a Customer over a period of time. The intensity of the Customer’s instantaneous PowerElectrical represents rate at which Energy is transferred th... Click for more requirement are not reflected.
- Time-of-Use (TOU): Pricing that varies to signal times where DemandThe total amount of Electricity required by one, many or all... Click for more on the Power System is higher or lower, with prices typically increasing as Demand increases. TOU seeks to encourage Customers to shift their Electricity usage to times of lower demand.
- Tiered Tariffs/Rates: Units of pricing that vary for different levels of Energy consumption.
- Seasonal Tariffs: Pricing that is adjusted for times of the year where significant LoadA term that is sometimes used synonymously with Demand, but ... Click for more types increase, such as heating and cooling loads.
- Fixed Charges: Flat fees paid regardless of the actual volume of Energy consumed and/or level of instantaneous Power required. Fixed charges are typically designed to cover the costs associated with maintaining the Electricity infrastructure where volumetric tariffs/rates are not able to equitably apportion these costs.
- Demand Charges: In addition to volumetric consumption of Energy, demand charges reflect the Customer’s highest level of instantaneous Power required over a specific period.