A utility programme announces a higher electricity rate one day in advance for approximately 12 days during the summer when the hottest weather is forecast. On all other days the rate follows the normal schedule. This pricing structure is an example of:

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Accepted Answer

Critical Peak Pricing, because a very high rate applies on a limited number of stress days with day-ahead notice.

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Real-Time Pricing, because the rate reflects wholesale market conditions and changes every hour of the day.

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Interruptible Load pricing, because customers agree to reduce load by a fixed amount when asked by the utility.

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Time-of-Use pricing, because the rate is set in advance on a daily schedule that customers can plan around.

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A utility programme announces a higher electricity rate one day in advance for a...

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