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False Economy

21 September 2018

False Economy [ 0.69 mb]

Time of use (ToU) tariffs are back on the radars of energy policy makers because of the smart meter rollout and the opportunity it presents. But these tariffs aren’t new. Customers on Economy 7 and restricted meter tariffs have been buying electricity at peak and off peak rates for decades. We refer to these types of tariffs as ‘Legacy’ Time of Use (LToU) tariffs throughout the report.

Our previous research into the LToU market found significant evidence of poor consumer experience and detriment. Six years on and we have found no meaningful improvement.

This research highlights areas where suppliers and the regulator, now need to do more to address the longstanding problems we have identified. It also demonstrates that learning lessons from the LToU market could inform better experiences for future consumers in the ‘Smart’ Time of Use (SToU) market.