Analyzing Time of Use Pricing for Residential Customers in Malaysia

In Malaysia, currently the Time of Use electricity pricing is only implemented on the commercial and industrial sectors. Residential customers are not able to enjoy this electricity scheme and are paying a fixed and flat electricity rate for every kilowatt hour consumed. The same Time of Use pricing for commercial and industrial cannot be implemented to residential customers as residential customers load profile is low during daytime and high during night time. This paper analyzes the significant price difference between the peak and off-peak hours to ensure the effectiveness of the Time of Use electricity pricing for residential customers and also to make an impact on peak demand reduction. A practical load profile will be generated based on a real house model. The results show that the Time of Use pricing is capable of reducing the electricity demand.