Creating motivation for people to shift unnecessary needs to off-peak hours

Hoàng Văn Minh |

The draft Law amending and supplementing a number of articles of the Electricity Law proposes to apply retail electricity prices according to peak hours, off-peak hours and normal hours for customers using domestic electricity when technical conditions permit.

This is a proposal with economic and technical basis, suitable for the requirements of using energy economically and efficiently.

Currently, domestic electricity bills are calculated based on monthly consumption. Using the same amount of electricity, households using a lot during peak hours and households actively shifting demand to off-peak hours still pay according to the same price schedule.

Meanwhile, the cost of electricity supply at each time is not the same. When demand increases, the system may have to mobilize additional high-cost power sources, while bearing greater pressure on power sources and grids.

Hourly electricity prices will create motivation for households to transfer urgent needs such as washing clothes, charging electric vehicles, boiling water or operating some equipment to low-pressure hours. If many families change together, the peak load of the system will decrease, thereby limiting the pressure of investing more in power sources and grids.

This calculation method also opens up opportunities to save costs for households that have the ability to proactively use electricity.

However, this policy needs to be piloted before being widely applied for many reasons.

First of all, domestic electricity is very different from electricity used in production and business. Most workers go to work during the day and return home in the evening. This is also when families cook, bathe, study, play and rest.

If peak hours coincide with essential living hours, many households may have to pay extra money even if they do not waste electricity. Large families with young children, elderly people, patients who need to use electrical appliances continuously, or people working during office hours are more likely to be affected.

Next is the huge difference in living conditions, occupations and electricity usage habits between population groups. The pilot program is not only to check the operating capacity of electronic meters and payment systems, but more importantly to assess the actual impact on invoices and the lives of each household group.

During this time, should each household receive a payment invoice according to the current method and a reference invoice according to the electricity price for each time frame. The difference between the two calculation methods will show which households benefit, which households have to pay more and the cause of the difference.

The pilot results are also the basis for determining the time frame, price difference and appropriate support mechanisms, avoiding the situation where the normal living hours of most families become the most expensive hours of electricity use.

Hourly electricity prices are a direction that needs to be supported. But the effectiveness of the policy needs to be further measured in terms of helping people use electricity more rationally, see benefits and not be put in a disadvantageous position just because of maintaining a normal rhythm of life.

Hoàng Văn Minh
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