Advantage Power Pricing
This project offered customers the chance to voluntarily sign up for one of three electricity pricing alternatives to reduce their electricity costs.
Conducted with the support of the Ontario Energy Board (OEB) and IESO, this was a resounding success: it gave 9,000 consumers a level of choice unprecedented in Ontario’s electricity system and resulted in noticeable bill savings for many participants while helping Alectra manage peak load and encouraging the adoption of new technology.
Tailored for EV owners, the “Overnight” model offered significantly reduced overnight electricity rates (when incented to charge their EV) in exchange for a higher On-Peak rate.
Results show substantial decreases in consumption during On-Peak hours and substantial increases during Off-Peak hours. This model could result in the following customer, grid, and environmental benefits.
- Cutting charging costs by approximately 80% makes it more affordable to own an EV. With the transportation sector accounting for 25% of Canada’s 2016 emissions, projects like APP could help increase EV uptake, thereby reducing Canada’s GHG emissions.
- Results demonstrated that voluntary pricing can significantly reduce peaks which could defer or eliminate the need for future investments if expanded at a larger scale. An expanded APP could also address surplus base load generation.
- APP helps utilities understand how customer choice, energy literacy, and other factors may lead to changes in customer behavior, helping them shape future energy services.
Results show substantial decreases in consumption during On-Peak hours and substantial increases during Off-Peak hours.
