The momentum behind time-of-use (TOU) and other time-varying rates is accelerating on multiple fronts, driven in large part by widespread electrification and renewable energy adoption.

The industry has come to recognize that when consumers receive price signals that accurately reflect electricity supply and demand, they are more likely to choose to reduce or shift their energy usage or to generate their own power to offset their demand. These behavioral changes are essential to achieving decarbonization progress.

Beyond decarbonization and grid flexibility, TOU rates can have a significant impact on customer/utility relationships at the highest level. Energy pricing has historically been the most significant contributor to customer experience (CX).

Fortunately, artificial intelligence (AI) can make the difference between a CX stumble and success. Data-driven marketing strategies not only improve how and what to communicate about these changes to customers but also enhance who to target for new TOU rate plans.