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“On-peak” time is the time when most of the people stay in home and
engaged with house hold activities with almost all of the electric
devices. For example, people turn on the microwave, refrigerator, air
conditioner, ironing, television, cooking heater and many more. It
creates some problems to the base load production and electric grid
operators. To make constant supply of electricity at “on-peak” time,
some small scale and less effective producer add some electricity to the
grid.
Effect of On-Peak and Off-Peak on Electric Bill
Base load is usually coal, nuclear, or natural gas fuelled generation using
technology that is relatively efficient but cannot be dead started and
stopped easily. Shoulder and peaking load uses quick-start, less efficient
technology such as a gas turbine, an enormous diesel consuming engine
or something similar. Thus it is reasonable to think that the price of the
electricity generated from diesel generator is expensive which increases
the electricity price at consumer level at on-peak time.
Ppeople can save money on electricity bill if anybody can significantly
reduce the amount of electricity use during on-peak times. We can see all
the usual charges for basic service on monthly bill, and also can see three
new line items. One line item will be monthly meter charge. The other two
additional line items will be for on-peak and off-peak time of use
adjustments. We receive a credit for the number of kwh of electricity used
during off-peak hours and an additional charge for the electricity used
during on-peak hours. So if we can reduce the use of electricity at on-
peak hours, then we can significantly reduce the electricity cost.
• Diurnal variations in the electric power demand is shown
in next slide.
• As can be observed, the trend shows an uneven pattern
with a peak usually in the afternoon.
• To match with the demand, the utility power suppliers
turn on the individual plants during the rising portion of
the demand and then take them off line as the demand
declines.
• A sufficient number of plants must be run continuously to
supply the minimum demand, called the base load.
• Hence the electricity utilised by the consumer is also
charged based on the demand pattern.
Tariff of Electricity