As energy demand and rates continue to rise, utilities and customers are finding ways to reduce consumption in order to save money. Adjusting the current rate structures is one avenue to accomplish this, according to industry experts.
Currently, only 1 percent of customers in the U.S. are on time-based rates according to a Fierce Smart Grid article.
Despite that large utilities and Public Utility Commissions in some states are starting to look into dynamic pricing models, the industry as a whole remains hesitant to move toward time-of-use pricing for three main concerns: fear that customers won't respond to dynamic pricing, fear that customers won't persist in using the program, and fear that low-income customers will be harmed.
However, as utilities change their rate structures, they must fulfill customer’s needs.
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