Enhanced time of use electricity pricing for commercial customers in Malaysia

Abstract

Malaysia has introduced a new Time of Use (ToU) tariff scheme known as Enhanced ToU (EToU) for commercial and industrial customers. EToU is a more detailed pricing scheme where one day time frame is divided into six period blocks as compared to only two period blocks in the existing ToU. Mid-peak tariff is introduced to the existing peak and off-peak tariff. Off-peak rate for EToU is significantly lower than the existing off-peak rate but the peak rate is much higher. EToU is designed to motivate users to reduce their consumption during peak hours or shift the load to mid-peak or off-peak hours, which if done correctly can reduce the electricity bill while maintaining electricity consumption. This new EToU scheme will benefit consumers if they are able to shift consumption from peak-hours into mid-peak or off-peak hours. This paper assesses the amount of load shifting that is required based on customers’ load profile and EToU rates. The load profile data of an office building in Putrajaya, Malaysia is used as a case study.