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The Green Blueprint cover image

Frontier Forum: How rates will make or break the energy transition

The Green Blueprint

NOTE

Savings Drive Behavior Change

The effectiveness of time-of-use rates or dynamic pricing hinges on the potential savings they offer consumers. To encourage users to shift their energy consumption from peak to off-peak times or adopt new technologies like electric vehicles, the savings must be significant. Rates that are only marginally different—like a 20% lower off-peak rate—fail to motivate shifts in usage. In contrast, substantial price reductions of 80% for off-peak usage lead to marked decreases in peak load. Empirical evidence from 400 global implementations confirms that greater savings directly correlate with consumer behavior changes, making well-designed rate structures crucial for success.

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