Distributional Impacts of Time of Use Tariffs

Reports, plans and updates, Reports, plans and updates

Half-hourly settlement is expected to increase the number of time of use tariffs and other types of smart products available to consumers. We commissioned this report in order to better understand how such tariffs may impact on consumer bills and what currently available evidence can tell us about consumers’ willingness or ability to respond.

Ofgem commissioned CEPA to deliver a report:

  1. analysing the distributional impact of time of use tariffs on different sociodemographic groups; and
  2. assessing the potential for behavioural change among consumers with different characteristic

Given that time of use tariffs are not currently widely available to domestic and smaller non-domestic consumers in Great Britain, we recognise that research on this topic is in its infancy. Therefore this study should be seen as a first step towards understanding the distributional impacts of time of use tariffs.

Today we have also launched our Electricity Settlement Reform Significant Code Review. Please see related documents.