Residential electricity time of use (ToU) pricing for Malaysia

Abstract

In Malaysia, Time of Use (ToU) pricing is applied on commercial and industrial electricity customers but not on residential customers. Residential pay a fixed/flat electricity price for every kWh they consumed disregarding the time of use. Many argued that imposing similar ToU pricing scheme on residential customers may only benefit the customers but not the utility since residential already consume more power during off-peak hours. This paper analyses the impact of imposing residential ToU pricing on utility's electricity cost by using a simple test system consisting of 3 loads each representing industrial, commercial and residential load profile. The results show that residential ToU pricing able to reduce the electricity cost provided that the residential peak and off-peak hours are properly selected.