The Value of Time of Use Tariffs in Great Britain
Citizens Advice has commissioned research to assess the value of time of use tariffs in the UK through a survey of 3,000 energy bill payers, combined with detailed power system modelling and a widescale review of previous studies and trials.
A tariff is a pricing plan for energy use. Time of use tariffs use different prices to encourage consumers to use electricity at times when more is available cheaply. This can support a more flexible and sustainable electricity system.
Consumers could benefit from lower prices under time of use tariffs, particularly if they can shift their electricity use. But there are risks that the complexity of these tariffs could lead to higher costs for consumers. As the consumer advocate, we wanted to understand these potential benefits and risks. There is a lack of evidence about how willing consumers in the UK would be to adopt these tariffs and whether they actually reduce costs.