Research from our ‘Connected homes insight service’ which found both suppliers and consumers have made tentative steps to explore Time of Use tariffs was featured in Smart Energy International.
Despite the low adoption at the moment, ToU offerings could become as popular as single-rate tariffs over the coming decades. According to modelling for the Electricity System Operator’s (ESO) 2020 Future Energy Scenarios (FES), more households will be incentivised to switch to ToU tariffs following the expected growth in EV ownership. The most ambitious scenario sees 50% of households using ToU tariffs by 2032.
The assumption that ToU uptake will follow EV adoption is a credible one, with EV-users seeing clearer benefits in ToU pricing and reporting higher satisfaction when on ToU plans. Suppliers are clearly targeting their ToU offerings at EV users, with six of the eight available deals aimed at this consumer group.Oliver Archer, Senior Analyst