Brattle Experts Provide an International Perspective on TOU Rates in Recent Article

Brattle Principal Ahmad Faruqui and Senior Research Analyst Cecile Bourbonnais have authored an Energy Regulation Quarterly article, “Time of Use Rates: An International Perspective.” It discusses the types of time-of-use (TOU) rates available in countries across Europe, Asia, Australia, and North America and the amount of participating customers in each location.

Time-varying rates (TVRs) properly reflect the cost of providing electric service and can help promote economic efficiency and equity in the usage of electricity. However, many customers are not aware that their utility offers time-varying rates, due to limited customer outreach and advertising on traditional and social media, and because many TVRs are not designed with the customer in mind. The article discusses the different ways in which utilities can increase TVR adoption among customers, including conducting focus groups with consumers to get insights on the design features that appeal the most to them.