Time-of-use (TOU) energy plans contain multiple rate periods rather than a single flat rate.
With the implementation of smart meters, we can begin to understand how consumption patterns differ over the course of the day. When examined at the national level, standard consumption typically peaks in the morning when people wake up and again in the evening when they return home. These peak demand periods result in increased electricity prices and emissions, and rewarding customers with the capability to shift their consumption off these peak periods is in the best interest for all parties.
With an appropriately crafted TOU plan, both the utility and household customer can achieve savings. SMAP is unique because can simulate TOU plans for a customer base, pinpoint which customers would be best to target for switching and produce valuable information like projected bill savings to present to the customer – all using only the smart meter data.