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An Introduction to Time-of-Use Energy Products

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You may have heard of Time-of-Use energy products. But, what exactly is a Time-of- Use (TOU) program? TOU programs are intended to encourage residential and small commercial customers to reduce electricity usage during certain hours when demand for electricity is high - the higher the demand, the higher the cost. When used effectively, these programs allow customers to shift their usage to periods when the demand is lower and less expensive.

How does TOU pricing work?

Traditionally, consumers are charged a flat rate for their electricity consumption during a predetermined time period (e.g. 8 a.m. to 10 a.m.). This flat rate is determined by taking into account higher-priced on-peak and lower-priced off-peak rates. With TOU pricing, energy consumers pay the actual lower rates for off-peak usage and higher rates for on-peak usage.

Do I need a smart meter?

Yes, you need a smart meter to be eligible to participate in a TOU program.

What are the benefits of a smart meter?

A smart meter monitors your usage in more detail than a conventional meter and continuously communicates usage information to your local utility for monitoring and billing purposes. Smart meters are not available in all utility territories.

As a result of smart meter technology, Direct Energy Business is able to ensure the price its customers pay for electricity supply reflects the actual cost of electricity produced.

What TOU programs does Direct Energy Business currently offer?

For small businesses in the PPL Electric Territory: Direct Energy Business offers Free Power Monday or Free Power Saturday plans, providing free electricity supply all day Monday or Saturday – whichever day you choose - for the 12-month term of the electric agreement. From midnight to 11:59 p.m. on Mondays or Saturdays during the agreement, you will not be charged for electric supply. View our offers.

Also in PPL, the Free Power Mornings Plan is available. Every morning, Monday through Sunday, from 8 a.m. to 10 a.m., the Direct Energy Business supply rate is $0.00/kWh for the entire length of a customer’s electric contract. Learn more about the Free Power Morning Plan.

Direct Energy is also offering a TOU product for its residential customers. Learn more about the Best Hourly Rate Plan.

Do you need some guidance on what plan to choose? Contact us.

These TOU program offers in PPL won’t be available indefinitely, so be sure to look for future updates on TOU program offerings via this blog. 

Posted: December 19, 2014